Incentives

THANKS FOR YOUR INTEREST IN THE COV!

We strive to make it easy to invest and grow here. If you have any questions throughout the process, don’t hesitate to contact us. We look forward to working with you!

Business Incentives

JOBS DEVELOPMENT INCENTIVE 

Our jobs development incentive is designed to assist growing Covington businesses or to attract new businesses that will be making capital investments and creating jobs. It provides eligible existing and new businesses a payroll tax reimbursement for up to 10 years.

RENT SUBSIDY INCENTIVE 

Part of our Small Business Program, our rent subsidy incentive is designed to attract new Covington businesses and help existing Covington businesses expand.  It offers financial assistance in the form of reimbursement of rent payment of up to half of the business's monthly rent or $500.00 per month (whichever is less).

FAÇADE IMPROVEMENT FORGIVABLE LOAN 

Part of our Small Business Program, our façade improvement incentive offers businesses a 50% matching forgivable loan (up to $6,000) to update their commercial building’s façade. It’s a great way to update lighting, windows, painting, signage, and other exterior building improvements visible from the street.

Developer Incentives

VACANT PROPERTY INCENTIVE

Our vacant property incentive is designed to entice developers and real estate investors to convert vacant, historic buildings into move-in ready, quality commercial space (office and retail) for prospective businesses. In return, we pledge 50% of the payroll tax from any new tenant to Covington the developer attracts for 5 years (or 25% for an existing Covington tenant. 

FAÇADE IMPROVEMENT FORGIVABLE LOAN

Part of our Small Business Program, the façade improvement incentive offers commercial property owners a 50% matching forgivable loan (up to $6,000) to update their commercial building’s façade. It’s the perfect way to update lighting, windows, painting, signage, and other exterior building improvements visible from the street.

TAX INCREMENT FINANCING (TIF)

This designated fund (financed by the dedication of incremental increases in district-wide property and payroll tax revenue) can be used to offset some eligible public infrastructure costs barriers associated with office, mixed-use, or residential new-construction or rehabilitation developments located in our downtown TIF district.

INDUSTRIAL REVENUE BOND

An industrial revenue bond is an economic development tool that provides upfront capital to close a funding gap in large-scale (usually $10 MM+) real estate developments that will help the City attract significant capital investment, jobs, and/or increase the City’s tax base. It acts similar to a property tax abatement by artificially keeping property taxes low over the incentive period. 

CDBG UPPER FLOOR REHAB FORGIVABLE LOAN

Provides eligible property owners up to $20,000 per unit for the redevelopment of vacant upper floor space to build Covington’s inventory of quality affordable housing.  This incentive is available to assist owners of mixed-use buildings.

PACE FINANCING

PACE is a simple and effective way to finance energy efficiency and renewable energy building improvements. PACE provides financing for 100% of an energy project’s, and is repaid for up to 25 years with a voluntary special assessment added to the property’s tax bill. To learn more, visit kypace.org

Business Loans & Assistance for Businesses and Entrepreneurs

SMALL BUSINESS DEVELOPMENT CENTER

The Kentucky SBDC in Covington provides one-on-one coaching at no cost to existing and potential entrepreneurs in Northern Kentucky. This center also meets the educational needs of the local small business community by offering a variety of low cost training programs taught by industry experts and qualified SBDC Coaches. To learn more, visit https://kentuckysbdc.com/

BUSINESS LOANS AND ASSISTANCE

We’ve compiled this guide to finding the perfect loan for your unique business. To learn more, just click the link

To Learn More

To learn about any of these incentives, loans, or other resources offered by the State and local organizations, please contact Ross Patten at rpatten@covingtonky.gov.


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