Industrial Revenue Bonds

Local industrial development corporations like the Longview Economic Development Corporation may issue tax-exempt bonds to finance land and depreciable property for manufacturing facilities. The maximum bond amount is $10 million for tax-exempt issues and the maturity of the bonds may extend to the lesser of 40 years or 120% of the depreciable life of the assets being financed. Eligible projects costs included the acquisition by a business of an existing facility, acquisition of land, construction of new facility, machinery, tools, equipment and limited amount of bond issuance costs. Industrial revenue bonds maybe both taxable and tax exempt.

SBA 504 Loan Program

Businesses that are located in or are interested in locating in Longview have access to the Small Business Administrations 504 Loan Program through the East Texas Regional Development Company. The 504 Certified Development Company (CDC) Program provides growing businesses with long-term, fixed-rate financing for major fixed assets, such as land and buildings.

Typically, a 504 project includes a loan secured with a senior lien from a private-sector lender covering up to 50 percent of the project cost, a loan secured with a junior lien from the CDC (backed by a 100 percent SBA-guaranteed debenture) covering up to 40 percent of the cost, and a contribution of at least 10 percent equity from the small business being helped. The maximum SBA debenture is $1,000,000 for meeting the job creation criteria or a community development goal. Generally, a business must create or retain one job for every $35,000 provided by the SBA. The maximum SBA debenture is $1.3 million for meeting a public policy goal.

Chapman Revolving Loan Fund

Businesses in Longview also have access to the Chapman Revolving Loan Fund Program. The purpose of the ETCOG CRLF is to create permanent full-time employment by providing financial assistance, in the form of loan guarantees.

The CRLF is designed to leverage private financing from conventional lenders, such as banks, through a loan guarantee. The CRLF will guarantee 50% of the lending needs for private for profit businesses. The guaranteed portion of a loan will not be less than $35,000 and not greater than $250,000. Eligible applicants are Corporations, Partnerships, Sole Proprietorships, Non-Profit Organizations.

North East Texas Economic Development District Revolving Loan Fund

The NETEDD RLF is a loan program that is designed to assist businesses leverage capital from conventional lenders. This program will provide funding up to $250,000 (depending on availability of funds) for the purchase of buildings, fixed assets, and in some cases working capital. The program provides capital in terms from 4% below to 4% above New York prime based on credit worthiness. In addition, interest rates are fixed for the life of the loan and the NETEDD will subordinate to the local lender. This is a federally funded program through the U.S. Department of Commerce’s Economic Development Administration.

Economic Development Sales Tax Incentives

The voters of Longview approved the creation of the Longview Economic Development Corporation (LEDCO) and LEDCO receives a portion of the total local sales tax receipts. The sales tax received may be used to provide incentives to firms who wish to expand or relocate in Longview. The incentives are considered on a case-by-case basis, and are based on the total investment being made, wage and benefits rates, and taxes that will be generated.