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Springfield on the Move (SOM) is a non-profit dedicated to revitalizing downtown Springfield. Its mission is to work with property owners, businesses, citizens and town government to enhance Springfield's downtown as an attractive, desirable and economically viable destination for residents and visitors. SOM also assists retail and professional/service businesses with finding storefront and upper-floor office space and with gaining necessary permits and approvals. Property owners in Springfield's designated downtown can access tax credits for building rehabilitation. Springfield's designated downtown status also makes it eligible for grants available only to such towns. 14 Clinton Street Suite 2 Precision Valley Development Corp. (PVDC) is organized to use the former Fellows Complex to provide sites for incubation of businesses and the generation of jobs, consistent with the economic development needs of the Springfield Community. 100 River Street Southern Windsor County Regional Planning Commission (SWCRPC) 802/674-9201, fax: 802/674-5711 Springfield Regional Chamber of Commerce represents businesses and individuals from Springfield and the surrounding area. Its Program of Work encompasses everything from tourism promotions to business development to educational support. 14 Clinton St. Suite 6 Springfield Regional Development Corp. (SRDC) can help locate a building or land for a business. It identifies loan sources and assists with the process of securing loans. 14 Clinton St. Suite 7 802/885-3061, fax: 802/885-3027 carol@springfielddevelopment.org Vermont Agency of Natural Resources assists with Act 250 and other permitting Regional Office - Springfield 100 Mineral Street Vermont Environmental Assistance Program provides cost effective and sustainable environmental assistance to Vermont businesses with the emphasis on long-term pollution prevention methods and processes wherever feasible. 800-974-9559 Vermont Manufacturing Extension Center offers assistance for those in or starting a manufacturing business. This includes plant layout, planning for efficiency, and engineering. POB 558, Springfield The following will assist with business plans, small business consulting and financial expertise: Micro Business Development Program 802/722-4575 Vermont Businesses for Social Responsibility 802/862-8347 Small Business Development Center (SBDC) is part of the Small Business Administration and provides free technical assistance to those in business or starting a business. This includes preparing a business plan, financial projections, bookkeeping, marketing, whether or not to incorporate and much more. 802/885-2071, 802/885-3027 SCORE is made up of retired executives who are available to consult, at no cost and on a one-on-one basis, on retail or industrial matters, creation of business plans and evaluation of financial data. 802/257-7731 Vermont Community Loan Fund: This private Community Loan Fund operates statewide, providing loans to sustainable business ventures, housing and small business. Interest rates are generally at market rates and each project is considered on a case-by-case basis. The maximum loan amount is determined on a case-by-case basis and loans must provide a benefit to low income Vermonters (those less than 80% of Vermont median income). Vermont Economic Progress Council (VEPC) In 1998, Vermont Governor Howard Dean signed into law Act 7 1, an Act relating to Education Taxation and Education Financing. Contained in Act 71 is a package of economic advancement incentives that are designed to achieve three goals: create quality jobs; close the wage gap between Vermont and the national average; and maintain and enhance Vermont's quality of life. The Vermont Economic Progress Council has been given the responsibility of implementing the incentive program, which is broken down into three categories: income tax based credits, which include payroll, research and development, work force development, export and small business investment; property tax based incentives, which include stabilization, construction in progress exemption, Brownfields exemption, tax increment financing districts and reallocation of education fund revenue; and a sales tax exemption of building materials purchased by a manufacturing entity. The statute creates an innovative review process for approving tax incentives both to businesses and municipalities for economic development activity. Decisions will be based on whether the company and the proposed economic activity fit the conceptual profile presented by a set of guidelines and whether a cost-benefit analysis points to a net positive fiscal affect on Vermont's tax revenues. The guidelines are not criteria; instead, they are collectively a series of attributes for economic development. The incentives program is designed to benefit companies that already call Vermont home. In addition to the nine guidelines, there are two very important aspects of the incentive program to keep in mind when deciding whether a project qualifies 1) "But For", and 2) Background growth rates. All projects applying for incentives must submit a letter from the CEO or highest-ranking Vermont official addressing that "but for" the economic incentives to be offered, the proposed economic development would not occur in a significantly different and significantly less desirable manner. Once a project has adequately met the "but for", it will then proceed to the next level of review. VEPC has established a process where applications
are due on the first Friday of each month with review by the full
Council taking place on the fourth Thursday of each month. As
part of a complete application the interested business or municipality
will have to provide the following information: 1) a letter detailing
the "but for" associated with the project; 2) necessary
application forms; 3) necessary data forms for each credit being
applied for; 4) a description of the business and the economic
activity in question; and 5) a narrative describing the applicant's
overall consistency with the following nine guidelines. A checklist
has been developed by the Council to assist the applicant with
the process of applying. 2. The new jobs should make a net positive contribution to employment in the area, and meet or exceed the prevailing compensation level, including wages and benefits for the particular employment sector. The new jobs should offer opportunities for advancement and professional growth consistent with the employment sector. 3. The enterprise should create positive fiscal impacts on the state, the host municipality and region as projected by the cost-benefit model applied by the Council. 4. The enterprise should be welcomed by the host municipality, and should conform to all appropriate town and regional plans and to all permit and approval requirements. 5. The enterprise should protect or improve Vermont's natural, historical, and cultural resources, and enhance Vermont's historic settlement patterns. 6. It is desirable for the enterprise to make use of Vermont's resources. 7. It is desirable for the enterprise to
strengthen the quality of life in the host municipality and to
foster cooperation 8. It is desirable for the enterprise to
use existing infrastructure or to locate in an existing downtown
redevelopment 9. If the enterprise proposes to expand within a limited local market, then the enterprise should not be given an unfair competitive advantage over other Vermont businesses in the same or similar line of business and in the same limited local market as a result of the economic incentive granted. Vermont State Tax Credits and Exemptions Financial Services Companies Tax Credit - Vermont offers a tax credit up to 75 percent off the state income tax, based on a formula that combines the company's in-state payroll and out-of-state revenues. Sales Tax Exemption - Vermont offers a sales tax exemption on certain building materials in excess of $1 million. For more information call 802-828-2535 or contact vttaxdept@tax.state.vt.us. Fuel and Electricity Sales Tax Exemption - This exemption applies to sales of electricity, oil and other fuels used directly or indirectly in manufacturing tangible personal property for sales. Equipment Sales Tax Exemption - Machinery and equipment used directly or indirectly in manufacturing tangible personal property for sale. Industrial Fuels and Raw Materials Tax Exemption - Motor fuels, except for railroad and jet fuel; component parts for manufacturing, packaging, and shipping materials; and newspapers and tangible property used as ingredients in the manufacture of newspapers are exempt from sales taxation. An exemption from property taxation is provided for plants and shrubs in commercial nurseries or greenhouses. Pollution Control Equipment Tax Exemption - Real and personal property used to control air or water pollution is exempt from property taxation. Energy and Fuel Conservation Measures - Alternative energy sources used to generate electricity or energy not sold or exchanged may be exempted by municipalities from property taxation. Small Business Investment Tax Credit
- The small business tax credit
was retroactively amended (effective January 1, 1998) to allow
a credit for the first dollar of investment, not only dollars
expended over $150,000, provided the investment exceeds $150,000.
A company may receive a credit in the amount equal to 5 to 10
percent of its investments within the state of Vermont in plants,
facilities, and machinery and equipment. Requirements vary depending
upon the number of employees in the business. Economic Opportunities Await The Precision Valley Development Corporation's incubator in downtown Springfield is an excellent location for businesses just starting out. Low cost rent and shared services along with spaces of varying sizes make it ideal for those businesses looking for small manufacturing spaces or to make the move out of home locations. Southern Windsor County has a variety of locally and regionally controlled revolving loan funds to augment state and federal programs. These revolving loan funds are designed to provide financing for emerging and expanding businesses. Springfield has a local revolving loan fund as well as the Connecticut River Development Corporation's Regional Revolving Loan Fund and the Connecticut River Valley Revolving Loan Fund, which serves all ten towns in Southern Windsor County. Without question, an available skilled work force remains the number one priority for starting and expanding businesses. The opportunities at the Howard Dean Education Center are designed to prepare such a work force. New curriculum meeting national standards will help prepare our young people. The resources of the Vermont State Colleges, University of Vermont and the River Valley Technical Center are available for customized training for businesses either on or off-site. The Connecticut River Valley Workforce Investment Board is prepared to match employer skill needs with training and education resources. We are one of the few areas of the State blessed with wide spread advanced telecommunications. Vermont Telephone (VTel) offers DSL services in 80% of its service territory, which comprises the majority of Southern Windsor County. Verizon is expanding its services daily. Companies dependent on telecommunications capability can access state-of-the-art products almost anywhere throughout the region. The Springfield area is wrestling with subdividing large industrial buildings into more manageable sizes for new and expanding businesses. Therefore, space inventory is changing. These projects provide an opportunity to prepare space for emerging businesses and technologies. Springfield presents a superb opportunity for Upper Valley businesses that have outgrown their upper valley location and are seeking land for new construction. We are ready to welcome new businesses from across the country or the globe that are looking to relocate here. Springfield provides access to urban markets without the urban expense. Springfield has easy access off Exit 7 of Interstate 91. We are within a 2-5 hour drive from Boston, Hartford and New York City. Further, we are perfectly situated to the Canadian market only 3.5-4 hrs. from both Quebec City and Montreal. We are eager for new development and job creation opportunities and ready to host new businesses. Summary of Financing Programs There are a number of financing programs available to new and existing businesses expanding, starting and locating to the State of Vermont. Below is a brief description of these various programs. For more information and applications for these programs, contact SPRINGFIELD REGIONAL DEVELOPMENT CORPORATION at 14 Clinton Street, Suite 7, Springfield, VT 05156,(802) 885-3061. The below market rate or fixed rate financing
sources are dedicated primarily to manufacturing and other "value
added" businesses, which will create or retain employment.
These are designed for the purchase of fixed assets (machinery
and equipment, land and buildings, and renovations), and some
limited working capital programs. Rural Development Programs: The former Farmers Home Administration, now known as Rural Development, provides guarantees of bank loans made to businesses. A typical guarantee is in excess of several million dollars with a maximum of $20 million. The lending institution applies directly to Rural Development for the guarantee. Small Business Administration: SBA has a number of programs, which guarantee bank loans to small business. Any small business is eligible and SBA can guarantee a loan from $10,000 to $750,000. Typically, the guarantee is 75% of the loan for machinery and equipment, real estate, and leasehold improvements. In addition to the regular loan guarantee program, SBA offers the "LowDoc" program. LowDoc can guarantee up to 80% of a $100,000 loan. This is specifically designed for small loans. Other requirements are very similar to the regular guarantee program. In addition to these guarantee programs, SBA offers international loans and working capital programs, microloans and direct loans through the "SBA 504" loan program. SBA 504 can provide up to $1 miIlion in financing for 40% of a fixed asset project. Interest rates are fixed for a period of 10 or 20 years, depending on what is being financed. Interest rates tend to be at or below market rates. SBA 504 is feasible for projects in excess of $700,000. State Programs Vermont Economic Development Authority (VEDA) The Vermont Economic Development Authority (VEDA) was created by statute in 1974 to promote econon-fic prosperity and increase employment through the operation of a variety of financing programs, including those offering direct loans, industrial revenue bonds and the issuance of mortgage loan insurance. The VEDA members are nine Vermont residents appointed by the Governor, plus the State Treasurer, the Secretary of the Agency of Development and Community Affairs and the Commissioner of Agriculture. It also offers the Small Business Development Corporation program, which can provide both fixed asset and working capital financing. SBD Corporation loans are available to smaller projects with a maximum loan amount of $50-100,000, The "Job Start" program is also available for income-eligible small business owners. The maximum loan amount is $15,000 at a fixed interest rate. Subchapter 5 - Direct Loan Program This program is designed to make low-interest loans available to business for the purchase of land, the purchase or construction (including renovation) of buildings and the purchase and installation of machinery and equipment for use in an "eligible facility". VEDA cannot finance or refinance existing company assets. Subchapter 5 loans may provide no more than 40% of the cost of a project. The level of VEDA participation in any project may be influenced by VEDA:s available funds and other considerations, including the number and quality of employment opportunities being created or preserved. Typically, a local development corporation will provide 10% of the project costs, with the balance being loaned by an independent lending institution. Subject to the 40% limitation, VEDA:s participation may not exceed $800,000, of which no more than $500,000 may be for land and buildings and $300,000 for machinery and equipment. VEDA usually secures its loan with a second mortgage on, or security interest in, the project assets subordinate to the interests of the principal lender, plus other collateral if necessary. In accordance with normal lending practices, principals of the borrower and their spouses are generally required to personally guarantee the VEDA loan. The term for real estate loans is currently ten (10) years, amortizable on a fifteen (15) year basis. The term for machinery and equipment loans is five (5) to seven (7) years, depending on the assets being financed. Applications are to be submitted in a three-ring binder. Applications are available from SRDC or VEDA. Subchapter 4 - Industrial Revenue Bonds Bonds issued by VEDA carry no pledge, direct or indirect, of the credit of either the State of Vermont or VEDA, nor any liability of either entity to make debt service or other payments. The sale of the bonds is based on the credit-worthiness of the borrower and any credit enhancement (e.g., letter of credit) offered. VEDA staff members are available to discuss possible structures of a bond issue with prospective applicants. Applications are to be submitted in a three-ring binder. A fee of 1/4 of 1% of the bond amount is payable upon fund approval of a refunding bond issue. The applicant will also be responsible for bond counsel fees incurred by VEDA in connection with the research for and issuance of an IRB. The IRB application process is a two-step procedure that requires VEDA to approve an inducement resolution and give final approval to the bond issue. The Authority has adopted a policy regarding IRB inducements, a copy of which is available from VEDA's office. Significant capital expenditures made by the applicant prior to VEDAs adoption of the inducement resolution may jeopardize the tax-exempt status of the bonds and/or may not be refinanceable with bond proceeds. Prospective applicants are urged to contact VEDA early in the planning phase to determine eligibility. In addition, applicants are advised to retain the services of bond counsel. Projects smaller than $1.5 million are generally not suitable for this program due to cost considerations. VEDA may issue tax-exempt, low interest bonds to provide funds for the acquisition of land, buildings and/or machinery and equipment for use in a manufacturing facility, defined as one producing or manufacturing tangible personal property. IRB's may also be used to finance "exempt facilities" as defined by the federal tax code, such as those that treat or dispose of solid or hazardous wastes. Federal tax code provisions must be complied with to assure eligibility for tax exempt financing. The Authority can also issue taxable revenue bonds within certain guidelines. Payroll Tax Credit - This program provides a credit against income tax liability equal to a percentage of increased payroll costs. A company with sales less than $10 million may receive equal to 10 percent of its increased costs of salaries and wages in the applicable tax year. Research and Development Tax Credit - This program provides a 10 percent tax credit against income tax for qualified research and development expenditures. Qualified R&D expenditures are those included in the IRS code. Workforce Development Tax Credit - A corporation can receive an income tax credit of 10 percent of its qualified training, education and work force development expenditures. Export Tax Credit - This provision allows exporting businesses to claim credit against income tax liability. The credit is the difference between income tax calculated under the existing state apportionment formula and the proposed formula, which double weights the sales factor and disregards "throwback" provisions. Brownfields Property Tax Exemption - Statewide education property tax exemptions are provided for expenditures incurred by a business for the construction of new, expanded or renovated facilities on contaminated property. To obtain specific information on VEPC please go to the Department of Economic Development's Web Site at wwwthinkvermont.com and refer to the section on financing. Local/Regional Programs Connecticut River Valley Revolving Loan Fund: The CRV/RLF operates in Windsor and Windham Counties, providing fixed asset and working capital loans up to a maximum of $50,000. Loans carry fixed interest rates, 1.5 % above principal. These loans will provide a portion of the financing necessary for a small business, with the balance of the financing coming from equity, banks or other sources. CRV/RLF can finance a number of different types of businesses, including manufacturing, other value added, commercial and retail. Connecticut River Development Corporation: CRDC also operates a Revolving Loan Fund for southern Windsor County. Interest rates are at or below market rates and are determined on a case-by-case basis. Loan amounts are also determined on a case-by-case basis. Loans can be provided for fixed assets or working capital. Town of Springfield Revolving Loan Fund: The Town of Springfield operates two Revolving Loan Funds, one for housing and one for economic development, for projects located within the Town of Springfield. Town of Springfield: Internet:
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