ECONOMIC DEVELOPMENT PROGRAMS

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1 ECONOMIC DEVELOPMENT PROGRAMS K ENTUCKY CABINET FOR ECONOMIC DEVELOPMENT: (502) The Cabinet is the primary state agency in Kentucky responsible for creating new jobs and new investment in the state. Programs administered by the Cabinet are designed to support and promote economic development within the state primarily through attracting new industries to the state, assisting in the development of existing industries, and assisting communities in preparing for economic development opportunities. The Cabinet consists of: Office of the Secretary Office of the New Economy Department of Coal County Development Department of Business Development Department of Financial Incentives Department of Community Development Department of Administration and Support Office of the Secretary: (502) Responsible for the development and administration of executive policies and for the overall management of the agency. Staff and administrative functions within the Office include: General Counsel, Communication Services, Advertising and Special Projects. Office of the New Economy: (502) Responsible for developing a strategy to assist and attract knowledge-based companies to Kentucky. Additionally, the Office will recommend to the Kentucky Economic Development Finance Authority (KEDFA) projects meriting funding through the high-tech construction pool and the high-tech investment pool. Department of Coal County Development: (502) Administers the Local Government Economic Development Program, which awards grants to eligible counties to diversify their economies through the development of industrial park sites for new and expanding industry. Department of Business Development: (502) Responsible for coordinating the recruitment and attraction of companies that will enhance the overall viability of the state's economy. The Department consists of the Industrial Development Division; the Site Evaluation Division; and two Representative Development offices - Far East Office in Tokyo, Japan, and a European office in Brussels, Belgium. Industrial Development Division: (502) Promotes the state as a location for new facilities to domestic and international clients. Initiates and participates in out-of-state trips to recruit industry, provides clients with information pertinent to location requirements, and travels with company representatives looking at sites and communities in the state. Project managers are assigned to act as liaisons between the client and permitting agencies, financial institutions, training assistance agencies and local economic development groups. Site Evaluation Division: (502) Maintains current data on available industrial sites and buildings in the state, assists communities in evaluating potential industrial sites, and publishes and distributes site maps and site information. The graphics section of the Site Evaluation Division prepares promotional and informational material for printing and display.

2 Department of Financial Incentives: (502) The Kentucky Economic Development Finance Authority through this Department, encourages economic development, business expansion, and job creation by providing financial support for business and industry through an array of financial assistance and tax credit programs. The Department of Financial Incentives coordinates all financial assistance, tax credit, and related programs available to business and industry. The Department consists of the Grant Programs Division, Tax Incentive Programs Division, Direct Loan Programs Division, Program Servicing Division, and the Bluegrass State Skills Corporation. Grant Programs Division: (502) Administers the following programs: Economic Development Bond Program: Makes bonds available for eligible projects. Industrial Revenue Bond Issue Program: Bonds made available by state and local governments can be used to finance manufacturing projects and their warehousing areas, major transportation and communication facilities, most health care facilities, and mineral extraction and processing projects. Kentucky Investment Fund Act: Provides tax credits to investors in approved investment funds. Kentucky Tourism Development Act: Provides sales tax refunds to companies that establish major tourism attraction projects in the state. Tax Incentive Programs Division: (502) Administers the following programs: Kentucky Economic Opportunity Zone Program: Provides tax credits to companies that establish new or expand existing manufacturing, service, or technology operations in a qualified zone having high unemployment and poverty levels. Kentucky Rural Economic Development Act: Provides tax incentives to new or existing manufacturing companies that locate or expand operations in counties suffering from high rates of unemployment. Kentucky Industrial Development Act: Provides tax incentives to manufacturers that locate or expand operations in Kentucky. Kentucky Industrial Revitalization Act: Provides tax incentives to existing manufacturers faced with imminent closure due to lack of productivity or profitability caused by outdated equipment. Kentucky Jobs Development Act: Provides tax incentives to service or technology related, nonmanufacturing, non-retail "white collar" companies who provide more than 75% of their services to persons located outside the state. Enterprise Zone Program: Encourages new or renewed development to targeted areas of the state by offering special state and local tax incentives to businesses locating in a zone. Cabinet staff serves as administrator of the 10 state-designated zones and staff to the Kentucky Enterprise Zone Authority. 2

3 Direct Loan Programs Division: (502) Administers the following programs: Direct Loan Program: Provides financing for manufacturing, warehousing, distribution, non-retail services, agribusiness, and tourism projects to private firms in participation with other lenders. Craft Loan Program: Provides direct loans to the craft industry to finance inventory, working capital, up to 50% of eligible operating expenses, and renovation or purchase of equipment or other fixed assets. Programs Servicing Division: (502) Performs auditing, monitoring and compliance functions for all other divisions in the Department of Financial Incentives. Bluegrass State Skills Corporation: (502) An independent de jure corporation that brokers skills training for business and industry, from entry-level to advanced training, and from upgrading present employees to retraining experienced workers. Awards grants to new, expanding and existing companies, providing up to 50% reimbursement of eligible costs. Provides tax credit to existing businesses for skills upgrade and occupational upgrade training. Works in partnership with other employment and job training resources and programs, as well as economic development activities, to package a program customized to meet the specific needs of a company. Department of Community Development: (502) Responsible for assisting communities in preparing for economic growth, encouraging job retention and creation by working with existing business and industry. The Department consists of six divisions: Division of International Trade, three Regional Economic Development Divisions - one each located in Western Kentucky, Central Kentucky and Eastern Kentucky; the Business and Entrepreneurship Development Division; and the Small and Minority Business Division. Division of International Trade: (502) Provides opportunities for increased export sales of Kentucky-produced goods and services by Kentucky businesses that are either (1) potential exporters willing to make a commitment to export sales to areas outside of the U.S., or (2) existing exporters with the potential for increased sales in existing or new foreign markets. Regional Economic Development Divisions: Performs three primary functions: (1) conduct Kentucky s only statewide existing business and industry visitation program focusing on new job creation, new investment and job retention with start-up companies, existing and expanding business and industry; (2) serve as the Cabinet s liaison with local government and the business community to extend and promote programs and services available through the Cabinet and other government agencies; and (3) assist communities in preparing for economic development opportunities through the Local Government Economic Development Program (LGEDP) and provide technical assistance to local economic development officials in preparing for industrial development. The three regional offices are: West Kentucky Office, Madisonville: (270) or Toll-free (800) Central Kentucky Office, Frankfort: (502) or Toll-free (800) East Kentucky Office, Prestonsburg: (606) or Toll-free (800)

4 Business and Entrepreneurship Development Division: (502) Assists new and existing, small business development through the expansion of entrepreneurial assistance programs. Consists of four program areas - business information clearinghouse, procurement assistance, business and technology, and business networking. Business Information Clearinghouse Branch: (502) or toll-free in KY Provides new and existing businesses a centralized information source on business regulations; assembles customized application and information packets for business proposals; assists businesses in securing necessary licenses, permits and other endorsements including an ombudsman service with regulatory agencies; acts as a referral service for government financial and management assistance programs; and serves as a regulatory reform advocate for business. Kentucky Procurement Assistance Branch: (502) or toll-free (800) Assists Kentucky businesses in selling their goods or services to federal, state, and local governments by offering a computerized service that can match government purchasing needs with potential Kentucky suppliers. Face to face assistance in preparing government bid packages is also offered through experienced contracting specialists located in three different field offices. Other services include providing military and federal specifications, the previous price paid for frequently purchased items, as well as offering training on how to do business with government agencies. The field office locations are: Louisville Service Center, Louisville: (502) South/West Kentucky Service Center, Hopkinsville: (888) Central Kentucky Service Center, Frankfort: (800) Business and Technology Branch: (502) Fosters the development and use of technology within Kentucky companies by linking them with services and programs designed to enhance their competitiveness. Provides businesses with information on technology resources and research capabilities through public and private sector entities. Kentucky Networking Initiative: (502) Supports, promotes and encourages the development of flexible networks among Kentucky firms. These networks are groups of three or more firms, which collaborate in order to enhance their competitiveness by focusing upon common problems or common opportunities. Also administers the Kentucky Network Grant Program, which provides match funding for eligible network activities. Small and Minority Business Division: (502) Serves as a resource center for small and minority business owners/managers. Encourages small and minority business development in the state by providing potential and existing small and minority businesses with information on start-ups, training, financing, and business planning; directing individuals to resources that offer specialized assistance, such as counseling and critiquing business plans and completing applications for small and minority business loans. Identifies construction contracts and procurement opportunities; assists in establishing relevant education and training programs that address the business needs of minority enterprises; and acts as an advocate for the expansion of small and minority businesses throughout the state. Access to Capital Electronic Network (ACE-Net): (502) Lists securities offerings of small companies up to 1 million dollars. 4

5 Commonwealth Small Business Development Corporation (SBA 504): (502) Provides longterm, fixed asset financing for small business expansions. Linked Deposit Loan Program: (502) Invests funds received from the Abandoned Property Account with financial institutions that lend proceeds to small business and agribusinesses for working capital at attractive rates. Department of Administration and Support: (502) Provides Cabinet-wide support in the areas of information resources, fiscal management, budgetary implementation and control, personnel support, and research services. The Department consists of the Office of Information Resources, the Division of Administrative Services and the Division of Research. Office of Information Resources: (502) Manages the Cabinet s information resources and office automation system, and provides computer support services. Division of Administrative Services: (502) Provides financial data and personnel management services; prepares and manages the Cabinet budget; and maintains adequate records for the Cabinet's activities. Services are provided through the Fiscal Management Branch and the Personnel and Payroll Branch. Division of Research: (502) Provides information and analytical services to support economic development activities in the state and support services for the Kentucky Strategic Plan for Economic Development. The Division compiles data on taxes, transportation, labor force, industrial services, manufacturers, economic and demographic statistics, and community information. The Economic Development Library contains approximately 5,000 volumes and 100 periodicals, relating to business and economic development. April,

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