This is the home of the Allegany County Industrial Development Agency. 

The following is an outline of available incentives and programs that could apply to your project or small business.  Contact individuals are as follows:

John E. Foels, Director of Development / Executive Director of ACIDA

Empire Zone -  This program has sunsetted, only existing EZ companies can continue benefits.  For Existing Empire Zone companies please discuss with John Foels

Gretchen Hanchett, Business & Community Development Director (ACRLF)

Diego Sirianni Economic Development Project Specialist II – Empire State Development

Allegany County Industrial Development Agency (ACIDA)

Once a project is determined eligible, you can apply for tax abatement programs administered by the Allegany County IDA.  Eligible companies frequently use installment sales and lease transactions to (1) purchase and improve land, (2) construct new facilities, (3) acquire, renovate and expand existing buildings, and (4) acquire and install new machinery/equipment.  The benefits of entering into these transactions include:

• Sales Tax Exemption – approved projects assisted through the Allegany County IDA are exempt from payment of sales tax.  Thus, construction materials, equipment and fixtures purchased through the agency in connection with an approved project will not be subject to state and county sales tax.

• Mortgage Recording Tax Exemption – The New York State Mortgage Recording Tax for commercial property is one percent (1% of the principal amount of the bond/mortgage).  Approved projects assisted through the Allegany County IDA are exempt from payment of mortgage recording tax.

• Industrial Revenue Bonds – The Allegany County IDA has statutory authority to issue industrial revenue bonds (IRB).  Financial institutions such as banks, pension funds, and insurance companies may purchase the bonds issued by the ACIDA. The interest rates and other term/conditions of the transaction are all established by the purchasing institution and are backed by the credit of the borrower, not the ACIDA.

There are two types of IRBs:

1.   Tax-Exempt IRBs – These bonds are exempt from federal income tax.  Tax-exempt bonds can only be issued for manufacturing facilities and facilities operated by not-for-profit organizations.

2.   Taxable IRBs - Although not exempt from federal income tax, these bonds are exempt from state and local taxation.

Allegany County Revolving Loan Fund

The Allegany County Revolving Loan Fund was established to create new jobs, retain existing jobs, and encourage business growth and expansion in the county. 

The program participates with other lenders, such as banks, the US Small Business Administration, New York State Job Development Authority, STEDO, WRC, Wellsville Village Revolving Loan Fund, and Rural Opportunities, Inc. in order to maximize the effect of the funds.

•  Interest Rates are flexible to meet the needs of the business, with the effect of the loan on the project and the risk being primary factors.
•  Maximum amount of any loan cannot exceed $25,000.  There is a $12 application fee (non-refundable) and the minimum loan request is $5,000.
•  The terms of each loan will be determined by what the money is used for.  In general:

1. Working capital loans are repaid in 2-6 years.
2. Equipment loans are repaid in 3-10 years (no longer than the life of equipment).
3. We require that one full-time job or the equivalent in part-time jobs be created for each $5,000-$10,000 of Revolving Loan Fund money loaned. Job retention can also be considered.  

•  Credit policy is appropriate to your situation.   Every effort will be made to assure that loans are fully secured, but repayment ability and fulfillment of goals are the major criteria.  Business owners must realize that collateral is essential to securing the loan.  Projects usually involve at least 10% of total loan equity participation, though this equity may in a form other than cash.
•  Fund sourcing for the loans described is a community development Block Grant from the Governor’s Office for Small Cities.  Small Cities goals are the creation of employment for low and moderate-income persons.  There will, therefore, be reporting requirements as a condition to working with this program so that we may track achievement of these goals.
•  Refinancing of existing loans from any source will generally be ineligible.
•  Businesses engaged in opinion-molding activities, estate investment, speculation, lending activities, pyramid sales plans, gambling or illegal activities are not eligible.

WRC/Western Region Corporation

Western Region Corporation, or WRC, makes working capital loans to small businesses using funds provided by New York State.  WRC is a non-profit corporation comprised of the five county industrial development agencies in Western New York.  Through its IDA partners, WRC also has ties to other local, state, and federal loan and grant programs.  In addition to helping businesses find financial assistance, WRC can direct the business to free and/or fee-based

business counseling services, management services, job training, productivity enhancement, technology access, and information assistance.  WRC works with the businesses and lenders to put together a comprehensive, effective, and practical financial structure for the small business.  Loan recipients have gone on to create hundreds of jobs in Western New York.

STEDO/Southern Tier Enterprise Development Organization

STEDO’s loans are provided through grants and/or loans from the USDA Rural Development, US DOC Economic Development Administration, the Appalachian Regional Commission and New York State.  STEDO loans range from $10,000 to $15,000.  Interest rates normally are at a fixed rate, set in the range of prime rate plus or minus two percent (2%).  STEDO normally lends funds for a five-seven year term.

Empire State Development

New York Empire State Development offers financial incentives to assist with site location, new facility construction, existing facility expansion or modernizing existing operations – all of which can be tailored to the size and scope of the project.

ESD Provides Financial Assistance for:

•  Acquisition of land and buildings or machinery and equipment.
•  Construction or renovation of buildings to house business operations, including leasehold improvements.
•  Construction or improvement of infrastructure required for new location or expansion.
•  Working capital.
•  Employee training.
•  Expanding your company’s export opportunities.
•  Productivity enhancement.

 ESD Offers Financial Assistance through:

•  Direct loans and/or grants to businesses for a portion of the eligible project costs.
•  Interest rate subsidies in the form of a grant or linked deposit with the lending institution, to reduce the cost of borrowing from private sector financial institutions.
•  Loans and grants for working capital assistance in specialized situations.
•  Infrastructure assistance in the form of a loan and grant combination for a portion of the cost of the infrastructure project.

Allegany County is located in southwestern New York State. The Industrial Development Agency office is located at the Crossroads Conference Center on New York State Route 19 just north of the Interstate 86 exit 30.