Financial Resources and Incentives
The City of South San Francisco works closely with the Governor’s Office of Business and Economic Development to help our existing businesses succeed and attract new businesses to our city. Below are some of the incentive programs that the State of California offers and that our staff can help you receive:
- California Competes
- Partial Tax Exemptions
- Tax Exclusions
- Employment Hiring Tax Credit
- Tax Credit for R&D
California Competes Tax Credit
The California Competes Tax Credit is an income tax credit available to businesses that want to come to California or stay and grow in California. Unlike the Enterprise Zone program this program is Statewide. Thus, there are no geographic restrictions. Tax credit agreements will be negotiated by GO-Biz and approved by the “California Competes Tax Credit Committee.”
Sales and Use Tax Exemption (partial)
A partial exemption of sales and use tax on certain manufacturing biotechnology and research and development equipment purchases. The partial exemption applies only to the state sales and use tax rate portion, currently at 4.1875 percent. The exemption does not apply to any local, city, county, or district tax. All manufacturers (NAICS Codes 3111 - 3399, inclusive), Research and Development in Biotechnology and Research and Development in the Physical, Engineering, and Life Sciences (NAICS Codes 541711 and 541712, respectively).
Sales and Use Tax Exclusion – Advanced Manufacturing & Transportation and Alternative Energy
A sales tax exclusion from both state and local sales tax collection on equipment purchases for qualifying businesses that conduct qualifying activities. Sales tax rates vary by jurisdiction (typically 7% to 9.25%).
New Employment Hiring Tax Credit (NEC)
The New Employment Credit (NEC) is available for each taxable year beginning on or after January 1, 2014, and before January 1, 2021, to a qualified taxpayer that hires a qualified full-time employee on or after January 1, 2014, and pays or incurs qualified wages attributable to work performed by the qualified full-time employee in a designated census tract or economic development area, and that receives a tentative credit reservation for that qualified full-time employee.
Small Business Assistance
The Small Business unit provides direct small business assistance to thousands of business each year with the help of our regional partners at the Small Business Development Centers. Over 95 percent of the +3500 assistance inquiries GO-Biz receives each year are from small business owners.
California Infrastructure and Economic Development Bank (I-Bank)
The California Infrastructure and Economic Development Bank (I-Bank) was created in 1994 to finance public infrastructure and private development that promote a healthy climate for jobs, contribute to a strong economy and improve the quality of life in California communities. The I-Bank operates pursuant to the Bergeson-Peace Infrastructure and Economic Development Bank Act contained in the California Government Code Sections 63000 et seq. The I-Bank is located within the Governor's Office of Business and Economic Development and is governed by a five-member Board of Directors.
The I-Bank has broad authority to issue tax-exempt and taxable revenue bonds, provide financing to public agencies, provide credit enhancements, acquire or lease facilities, and leverage State and Federal funds. The I-Bank's current programs include the Infrastructure State Revolving Fund (ISRF) Program, 501(c)(3) Revenue Bond Program, Industrial Development Revenue Bond Program, Exempt Facility Revenue Bond Program and Governmental Bond Program.
California Capital Access Program
The California Capital Access Program (CalCAP) encourages participating banks and lending institutions to provide loans to small businesses that fall outside of conventional underwriting standards. Small business owners that have difficulty in obtaining conventional financing may qualify for a CalCAP loan through any CalCAP lender.
- Employment Training Panel
- Industrial Development Bond
- Small Business Loan Guarantee
- Pollution Control Tax-Exempt..
Employment Training Panel
A cash reimbursement for training cost incurred by employers set by a pre-determined two-year performance based contract. Contracts vary based on number of employees enrolled, hours of training, training material and employee wages.
Industrial Development Bond (IDB)
Industrial Development Bond (IDB) financing is a competitive financing option available for the acquisition of manufacturing facilities and equipment providing a financing option for manufacturers to access private capital markets at tax-exempt rates.
Small Business Loan Guarantee (SBLGP)
The California Small Business Loan Guarantee Program (SBLGP) assists businesses with the creation and retention of jobs while encouraging investment into low- to moderate-income communities. The SBLGP enables small businesses to not only obtain a loan it could not otherwise obtain but more importantly helps to establish a favorable credit history with a lender so the business may obtain loans in the future on its own without the assistance of the program.
California Capital Access with Collateral Support (CalCAP - CS)
CalCAP CS pledges cash to cover the collateral shortfall of loans of $100,000 or more. CalCAP CS provides up to 40% of the loan value, with the possibility of an additional 10% for businesses located in a Severely Affected Community. Small business lenders loaning to businesses classified as a small business under U.S. Small Business Administration guidelines and that have fewer than 500 FTEs. The borrower's primary business and at least 51% of its employees or business income, sales or payroll must be in California. The business activity resulting from the bank's loan must be created and retained in California.
Pollution Control Tax-Exempt Bond Financing Program
Private activity tax-exempt bond financing to California businesses for the acquisition, construction, or installation of qualified pollution control, waste disposal, waste recovery facilities, and the acquisition and installation of new equipment.
The City of South San Francisco is partnering with NOVA Workforce Development to offer employers job training financial incentives through the On-the-Job Training (OJT) Program.
What is On-the-Job Training?
OJT is training conducted by an employer for an individual while he or she works and learns the skills necessary for productive and satisfactory job performance. The job must be a permanent, direct hire working for at least 32 hours per week with wages based upon marketable skills and experience. An OJT can be developed for practically any position (e.g. administrative assistant, accountant, financial analyst, production support, sales representative, technician, and more). NOVA’s OJT program is federally funded and provides employers with financial assistance for hiring and training NOVA job seekers. Upon completion of the training, you will have a well-trained employee vested in the success of your business.
Employer Benefits: A great employee who is eager to learn the skills necessary for success An investment in your company 50% wage reimbursement to offset employee training costs Customized, hands-on training that you design No-cost bonding for up to $25,000 to cover your business for any potential damage or loss Additional tax incentives for businesses that qualify, such as the Work Opportunity Tax Credit (WOTC) and the San Jose Enterprise Zone credits Minimal paperwork In addition to these incentives, an OJT advisor will assist you in creating a comprehensive on-the-job training plan, and will also provide career coaching to the employee.
Additional Information: If you are interested in participating, an OJT advisor will be happy to discuss how your business could benefit from hiring a NOVA job seeker. Contact NOVA’s OJT program at (408) 730-7232 or email@example.com for more information.
Marble Bridge is a commercial finance company headquartered in the San Francisco Bay Area, A direct funder providing capital and related services to companies; for start-ups to companies with $100 million in sales via range of innovative services: Accounts Receivable Financing, Purchase Order Financing, and Letters of Financial commitment. Our financial programs do not add any debt or affect the equity in your company. Together we work with bankers, financial advisors, and local, state, and federal agencies to provide capital and related financial services to growth-driven, entrepreneurial companies.
(925) 977-8210 1440 Maria Lane, Suite 210 Walnut Creek, CA 94596-5338 firstname.lastname@example.org http://www.marblebridge.com