According to Birmingham City Council (BCC), Birmingham Mayor Randall L. Woodfin and the BCC have approved an ordinance that will support the growth and retention of Birmingham-based businesses. Keep reading for more information on what this could do for your business.
The ordinance known as RISE, Retention Incentives for Success and Expansion, will establish two funds that will provide resources for area businesses. With this ordinance, seven percent of city sales transactions will be used to fund two new programs when the transaction:
- Results from a price in excess of market value
- Is tied to a redevelopment agreement
- Is considered a surplus asset
While, four percent will be used as a cash incentive and three percent will be for the revolving loan fund.
“Many municipalities have focused on recruitment efforts, but not necessarily retention and expansion. There have been calls made but there are typically no incentives to assist in their remaining and growing in Birmingham.”Cornell Wesley, Director of the Department for Innovation and Economic Opportunity, Birmingham City Council
How this works
Eligible businesses will be able to get the money if they are retaining and expanding the base of their employees and if the business operates within the Birmingham area. Businesses that were denied a loan and new start-ups that create at least five full-time jobs may qualify for this funding. The cash fund will mainly target legacy businesses and the revolving loans will typically target small businesses. These resources will also support the existing businesses under the Woodfin Administration.
“The health and longevity of our local businesses are a priority. A strong business community makes for a strong economy and a thriving city. I am committed to supporting the success of our business owners.”Randall L. Woodfin, Mayor, City of Birmingham
How do you feel about Mayor Woodfin and BCC’s new ordinance to support local businesses in Birmingham? Tag us @Bhamnow and let us know.