Local Financing

Local Financing and Tax Relief Opportunities

The Member Communities of GPS 45:93 have a variety of programs to assist businesses locating within their community. These programs vary from community to community. However, most communities have one or more of these programs. The following descriptions provide a general overview. The GPS staff will work with you to obtain the appropriate funding by working with the local community.

Tax Increment Financing (TIF)

TIF financing is used to write down the cost of land and improvements.  TIF is basically the difference between the property’s original property taxes and the property taxes due after the property improvements have been completed (the “tax increment”).  The tax increment can be used to help finance eligible costs associated with the project.

Tax Abatement

Tax abatement is similar to TIF but is controlled separately by the taxing entities.  It involves the rebate of a portion of the property taxes back to the property owner to help offset development or redevelopment cost.  Normally the rebate is a portion of the tax increment from the development.

Revolving Loan Fund (RLF)

Local Revolving Loan Funds are generally designed to provide low interest loans to firms locating within a community and creating jobs. The Revolving Loan Fund programs vary from community to community in terms of policies and requirements.  Some communities require the partcipation of a financial institution for a portion of the project.

Mora's Revolving Economic Development Loan program allowed us to make our business strong and provide more jobs for the community. We wouldn't have been able to purchase our business and relocate it to Mora without the city's help.

Paul Kastenbauer
Dal-Kor Corp.