Business Economic Development

Cost of Doing Business

Incentives and Special Programs

HUBZone

The Historically Underutilized Business Zones (HUBZone) Contracting program was enacted into law as part of the Small Business Reauthorization Act of 1997. Under the supervision of the U.S. Small Business Administration, the program encourages economic development in HUBZones by establishing that the federal government will award 3% of all federal prime contracting dollars to HUBZone-certified small businesses each year. The SBA’s HUBZone program is in line with the efforts of the federal government to increase employment opportunities, investment, and economic development in certain distressed areas by providing access to more federal contracting opportunities. A 2019 adjustment to the program makes it more attractive for businesses to invest in HUBZones and hire HUBZone residents, providing greater impact to communities and making it easier for federal agencies to award contracts.

Benefits

  • 10% price evaluation preference in full and open contract competitions
  • Eligibility for HUBZone set-aside and sole-source contracts

Eligibility

  • The business must be small by SBA standards according to the firm’s North American Industry Code System (NAICS) code.
  • The business must be owned and controlled at least 51% by U.S. citizens,
  • The business’s principal office must be located in a HUBZone. Principal office is defined as the office where the greatest number of employees work.
  • At least 35% (rounded up) of all the business’s employees must reside in a HUBZone.

Visit the HUBZone website for complete details about program benefits and eligibility: www.sba.gov/hubzone

Find out if you are in a HUBZone: www.sba.gov/hubzone

Meet with your local SBA District Office to discuss opportunities for contracting: www.sba.gov/local-assistance

Contact HUBZone at hubzone@sba.gov.

Incentive and Application

The amount of the increase in the assessed value of the structure after rehabilitation, over its assessed value at the date of application, is exempted from real estate tax. Application must be made to the Department of Community & Economic Development. Conditional approval may be granted based on plans submitted prior to rehabilitation, but the exemption will not be granted until completion of the work. There is an application fee of $20.00.

Revolving Loan Program

The revolving loan program is managed by the City of Buena Vista for small businesses to provide needed capital for start-ups and improvements. Loans are provided with funding received through USDA Rural Development. Applications are reviewed by the committee as they are received. The maximum loan award is $15,000 at 3% interest over three years

What will the RLP fund?

The Revolving Loan Program will fund the following:

  • Acquisition and development of land, easements, and rights-of-way.
  • Business equipment and machinery
  • Access streets, roads, and parking areas
  • Construction, conversion, enlargement, repair, and/or modernization of buildings
  • Pollution control and abatement facilities
  • Startup operating costs and working capital

What are the criteria?

  • The business must be located in the City of Buena Vista.
  • No assistance for any project will exceed $15,000 without substantial evidence of significant economic and social benefit.
  • One permanent job must be created or retained for every $10,000 of funds loaned, and the RLF loan can be no more than 75% of the total project cost.
  • The minimum private (business/owner) investment or equity in the project is 25% of the project cost.
  • There must be evidence that program loan funds are necessary to make the proposed project feasible.
  • The project must be eligible under the United States Department of Agriculture guidelines to receive funding.
  • Employees of USDA-RD or persons related to employees of USDA-RD are not eligible for lending from the IRP or RBEG funds

Are there additional criteria for construction or improvement loans?

  • Applicants seeking funding for property improvements must submit a detailed plan of proposed improvements, subject to the review of the Loan Review Committee.
  • All applicants seeking funding must commence the property improvements, expansions, or construction within eight months of receiving funding. A project that does not abide by this timeline would constitute an event of non-compliance requiring immediate recapture of the loan balance. Upon initial notification of non-compliance, the recipient may request are mediation period for successful resolution of the non-compliance.
  • The fund will not provide financing in excess of 15% of the total project cost to secure conventional lender financing.
  • There must be evidence that no significant negative land use or environmental impacts will occur as a result of the project. Are there additional criteria for seed/working capital loans?
  • There must be evidence that the project is feasible and that the business requesting assistance can continue in the foreseeable future.
  • Financial and business plans are required within the application process and are subject to thorough review.

Interested? Here are the next steps:

  • Fill out and submit an application to the Department of Community & Economic Development(DCED). The DCED will review your application and inform you if any additional information is needed
  • If everything looks good, the DCED will send your application to the Loan Review Committee for final review and send you a letter/email with their response.
  • The city will monitor progress by:
    – Providing follow-up assistance to borrowers, including site visits and financial record reviews.
    – Assisting businesses with issues concerning unexpected events and future growth.
    – Providing business consulting through key personnel on the Loan Review Committee.

Contact Kristina Ramsey if you have any questions! Phone: (540) 261-8616 | Email: Kristina.ramsey@bvcity.org

Technology Zone Incentives

A technology zone is a distinct geographical area of the city that provides a package of incentives designed to encourage business expansion and recruitment. There are two technology zones within the city, the Downtown Technology Zone and the Industrial Districts Technology Zone. The Downtown Technology zone is the area shown on the attached map. The Industrial Districts Technology Zone shall be all lands now or in the future zoned Industrial.

What incentives are available?

In exchange for the tax revenue and jobs generated for the City, businesses can be awarded incentives using the following parameters approved by Buena Vista City Council:

Existing Business:

  • A rebate of a percentage of the utility tax on local telephone usage, electric usage, and cable television.
  • exempted from a percentage of the business, machinery & tools, professional, and other occupational license taxes and fees. They shall also have a percentage of business personal property rebated.

New Business:

All of the benefits of existing businesses listed above, as well as the following:

  • Rebated sewer and water connection fees
  • Rebated fees for development plan approved, including site plan, zoning, subdivision, sign, and building permit fees.

Downtown District:

Existing Businesses

  • Must increase average number of full-time employees by at least three (3) net new full-time employees over the base year and demonstrate a new net capitalized investment of at least $15,000.

New Businesses

  • Must create a minimum average of three (3) full-time jobs and make a capital investment of at least $20,000

Industrial District:

Existing Businesses

  • Must increase the average number of full-time employees in the technology zone by ten(10) percent over the base year and make a capitalized investment of at least $150,000.

New Businesses

  • Must create a minimum of twenty-five (25) full-time jobs and make a capital investment ofat least $150,000.

This seems doable. What’s next?

  • Submit a Technology Zone Program Request to Kristina Ramsey, Economic Development Coordinator, at 2039 Sycamore Avenue or by email at kristina.ramsey@bvcity.org.
  • This should include a business plan, project details, and your plans to meet eligibility requirements.
  • The Department of Community & Economic Development will review this request and follow up with any questions.
  • If your business is certified, you will receive an official offer letter and program contract

Contact Kristina Ramsey if you have any questions!

Phone: (540) 261-8616 | Email: Kristina.ramsey@bvcity.org

Tourism Zone Incentives

The purpose of the zones is to attract visitors and business owners from the Buena Vista region and beyond by promoting the expansion of tourism businesses, encouraging revitalization, enhancing mixed-use development, increasing jobs, and helping create a business-friendly environment. The City has defined two Tourism Zones as permitted by the Code of Virginia. Buena Vista’s Tourism Zones are designed to attract travel and tourism-related businesses to the downtown area and the Glen Maury Park/Hill Top area.

Is your business eligible?

The following businesses qualify for tax incentives within the city’s tourism zones:

  • Lodging establishments or bed and breakfasts
  • Seated Restaurants
  • Downtown grocery
  • Recreational businesses
  • Antique merchandising shops
  • Collegiate merchandising shop

New businesses must invest $500,000 and existing businesses must make a new investment of$250,000.

What incentives are available?

In exchange for the tax revenue and jobs generated for the City, businesses can be awarded incentives using the following parameters approved by Buena Vista City Council:

  • Business license taxes are rebated a 50% by June 30th, when paid by March 1st.
  • Real Estate taxes on new construction are rebated 50% by June 30th, when paid by December 5th(Businesses who rent do not qualify).

No incentives will be available on delinquent accounts.

Application

  • Fill out and submit your Tourism Zone Program Qualification Application to Kristina Ramsey, Economic Development Coordinator, at 2039 Sycamore Avenue or by email at kristina.ramsey@bvcity.org.
  • Applications must include a business plan and project details.

Approval Process

  • Once the application is received, the Department of Community & Economic Development will perform the initial review of the project to determine if the project meets the required criteria.
  • If the initial review indicates that the project has merit, a request and recommendation will be forwarded to the City Manager for consideration by City Council.
  • City Council will evaluate the request and make a decision based upon the project’s positive impact on the city.

Incentive Period and Review

  • Qualified Tourism Businesses shall receive the benefits of Tourism Zone incentives for a five (5)year period and may apply for three (3) additional incentive periods, each five (5) years.
  • Once certified, the business must submit an Annual Review application to the Commissioner of the Revenue.

Contact Kristina Ramsey if you have any questions!

Phone: (540) 261-8616 | Email: Kristina.ramsey@bvcity.org

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