Economic Development
Duties & Responsibilities

Industrial Development and Retention Coordination
Commercial Development and Retention Coordination

Mission Statement

Facilitate economic and business development in the city. Work with Businesses, industries, and developers. Assist with financial information Financial incentives, and assistance. STAFF:


Yvette M. Harvey
Yharvey@eastchicago.com
Duties and Responsibilities:
Industrial & Commercial Properties

Nelson Vargas
Nvargas@eastchicago.com
Duties and Responsibilities:
Marketing

Ebony Williams-Stringer
Ewilliams-stringer@eastchicago.com
Duties and Responsibilities:
Secretary Adm

Russell Samuels
Rsamuels@eastchicago.com
Duties and Responsibilities:
Business Specialist


CITY OF EAST CHICAGO
FINANCIAL INCENTIVE PROGRAMS

The City of East Chicago offers financial incentive programs to businesses located in East Chicago and those wanting to locate in the City. Availability of these programs depends upon the specific needs of the businesses and the eligibility requirements of each funding source.

FEDERAL PROGRAMS:
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2. Small Business Administration 504
The SBA 504 Loan Program provides long-term, fixed asset financing for the expansion of small for-profit corporations, partnerships, or proprietorships. Loan funds may be used to purchase real estate, certain
machinery and equipment, or for new construction or building improvements. The loan structure typically requires 10% participation from the borrower, 50% first lien bank financing, and 40% from the SBA.
Interest is fixed, based on 10 or 20 year T-bill rate. One job must be created or retained for each $35,000 loaned. The maximum dollar amount is $1 million.


3. Small Business Administration 7(a)
The 7(a) program fosters and promotes the growth and development of small businesses by facilitating small business concerns' assess to capital through the utilization of loan guarantees to qualified private
lender participants. The 7(a) program provides loan guarantees to participating lenders for loans advanced to eligible small business concerns. The participating lenders provide all direct funds. Loan maturities are normally limited to 7 years for working capital, 10 years for machinery and equipment purchases, and 25 years for real estate. The maximum guaranty is 85% for loans under $150,000, and 75% for loans more than $150,000. The maximum interest rate is prime plus 2-3/4%. The maximum dollar amount that SBA can guarantee is $1 million.


1. Empowerment Zone
The Gary, East Chicago, Hammond Empowerment Zone is a federally sponsored comprehensive redevelopment program that affords the three cities the opportunity to create jobs, attract new businesses, strengthen the three communities, and address an aged infrastructure. The 10 year designation allows the three cities and entities within them to take advantage of tax credits and other inducements that will assist existing businesses and attract new and enhance designated zone neighborhoods. Tax incentives and other inducements that are available to a zone business include: Empowerment Zone Employment Credit, Work Opportunity Tax Credit, Welfare to Work Tax Credit, Enterprise Zone Facility Bond Program, increased Section 179 Deduction Incentive, Environmental Cleanup Cost Deduction Incentive for Brown fields, Qualified Zone Academy Bond Program, and Low-Income Housing Tax Credit program.


STATE OF INDIANA PROGRAMS
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1. Economic Development for a Growing Economy (EDGE)
Businesses that expand in Indiana or will be operating in the state as a result of the program are eligible. The project must create new, competitively paying jobs for Indiana residents. Credits are considered when a project would otherwise locate in a different state, and when local governments have committed significant incentives. Companies agree to operate in the state for at least twice as long as the duration of the credits. This program provides tax credits based on payroll.
Indiana individual income tax withholdings from company employees can be credited against the company's Indiana corporate income tax liability. Excess withholdings will be refunded to the company. The credits have no effect on employees' income tax liability.

2. Training 2000
The Training 2000 program, administered by the Indiana Department of Commerce, provides training assistance for companies making a capital investment in an Indiana facility and retraining current employees or hiring of new employees. The program encourages development of quality training programs and increases accountability by monitoring. Financial assistance is in the form of a grant for reimbursement of eligible training costs. The program covers instructional costs to train new or existing employees, including instructor wages, tuition, and training materials. Eligible uses include basic skills, transferable skills, company specific skills needed to support existing and future capital investment, and quality assurance. Eligible businesses include manufacturing companies, distribution centers, consortia of manufacturing companies or distribution centers , regional headquarters or back offices. Awards for retraining are a maximum ceiling or $200,000, up to 50% of eligible training costs.

3. Loan Guaranty Program
The Indiana Development Finance Authority offers loan guaranty programs to help borrowers obtain financing from lenders when they do not qualify under traditional terms. IDFA can provide guarantees of between 75% and 90% on loans, letters of credit, leases, and bonds. IDFA can guaranty loans for industrial development. Projects must result in the creation or retention of Indiana jobs. The maximum guaranty is $2 million.

4. Capital Access Program
The Capital Access Program, administered by the Indiana Development Finance Authority, provides businesses with access to capital by encouraging lenders to make loans they might not otherwise make. Average loan size is $45,000. Indiana businesses are qualified, except for passive real estate ownership, housing, loans made to officers,
directors, or principals shareholders of the lending institution or companies controlled by them or their family members, or refinancing of existing debt. The borrower pays between 1.5% to 3.5% of the loan amount; the lender matches the borrower's payment, and IDFA matches the borrower's and lender's combined payments.


LAKE COUNTY PROGRAMS
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1. Lake County Revolving Loan Fund
The Lake County Revolving Loan Fund is to provide short term
(construction financing or 5 years for purchase of machinery and
equipment) financing to establish or expand eligible industrial or
commercial businesses. Eligible activities include: acquisition of
building(s), acquisition of machinery/equipment, leasehold improvements,
new building construction, energy conservation, pollution control, and
on-site infrastructure. Interest rates range from a minimum of 3% and a
maximum of 2 points under current rates at local financial
institutions.


CITY OF EAST CHICAGO PROGRAMS

EAST CHICAGO CITY SEAL

1. Revolving Loan Fund
The City offers fixed rate financing for fixed assets and working capital loans to industrial, commercial, and retail businesses in the City. Loans are available for business expansion or retention, or for new businesses. Rates are generally fixed at two points above or below prime, with a minimum rate of 4%. Five year loans are available for equipment and working capital, and 10 years for real estate. The RLF offers $10,000 for each job created or retained. The maximum loan amount is $75,000, to be matched with two dollars of private dollars for each RLF dollar.


2. Tax Abatement
Tax abatement was applied citywide under the 1983 state law. All private industrial and commercial redevelopment qualified for the 10-year and five year building forgiveness. State law permits, as of 1986, a three, six, or ten year building abatement. There is an abatement on machinery and equipment under the Indiana Personal Property Tax as well.


3. Industrial Revenue Bonds
Industrial Revenue Bonds can be issued by the City's Economic Development Commission. These are tax-exempt bonds for new industrial construction pursuant to Indiana Municipal Economic Development Act, as amended. Up to 100% financing is available for land, building, on-site improvements, and capital equipment.


4. Urban Enterprise Zone
East Chicago is one of several Indiana cities that has been given special exemption on certain taxes within a defined Enterprise Zone.
These exemptions and special economic development incentives are as follows:
1) Forgiveness of inventory taxes, with a 100% tax credit property tax liability on inventory,
2) Exemption on the Indiana Gross
Income Tax,
3) Employer Tax Credit of 10% of resident wages up to $1,500 per employee, and
4) A tax credit of 5% of interest earned on loans to Enterprise Zone firms for improvements to real property.