Incentives Fetched by Businessmen in the Bronx

Bronx High School of Science — Bedford Park, Bronx

Bronx High School of Science — Bedford Park, Bronx

To start a business, every businessman needs money to fund the expenses related to the business.

The Bronx is considered as one of the booming districts of New York City for establishing new businesses as well as expanding them.

Regardless of whether you are considering starting a new business in the Bronx or anywhere else in the New York City, or whether you already have your business located here, you are fit for several incentive programs which will benefit your business in short as well as long terms.

Business incentives are offered at various federal levels and programs which offer tax redemptions as well as other benefits.

These incentive programs are designed in such a way that they promote the borough as well as New York City’s objectives of creating jobs and empowering monetary development and business enhancement.

Different agencies direct these programs and applying for these incentive programs can be a bit complicated.  The city has devoted staff to help you explore these procedures. You can also search for a specific program, match it with your needs and then contact the agency executive to help you in availing that particular program. There are several incentive plans, among them being:

Business Incentive Rate (BIR)

This incentive reduces the components of power bills by 30-35 percent. Organizations are anticipated to expand with time and to maintain their work in New York City. The organization must likewise apply for other city or state advantages that equal or surpass the estimation of the BIR advantage. Those advantages incorporate, yet are not restricted to: Industrial Advancement Agency (IDA) incentives, Excelsior Jobs Program, Energy Cost Savings Program and Industrial and Commercial Abatement program. The incentives can last up to five years.

Capital Access Loan Guaranty Program

This program provides up to a 50 % guarantee on loans for all micro and small businesses that are trying to establish their firms in the Bronx or other parts of New York City and are facing difficulties in accessing loans. Loans can be used as a working capital, for purchasing equipment as well as for improving leases.

Commercial Expansion Program (CEP)

The program allows a lease reduction of up to $2.50 per square foot for new, expansion and renewal of leases. Business organizations, as well as not-for-profit associations, are eligible to get these benefits for up to 5 years; manufacturers are eligible to avail this benefit for up to 10 years. It is applicable for businesses located in the Bronx, Brooklyn, Staten Islands and some of the other parts of New York City.

Economic Development Fund (EDF)

EDF is mainly for the not-for-profits, industrial as well as commercial business which is into the expansion, construction and rehabilitation of facilities; working capital; procurement of apparatus and hardware; and the preparation of full-time permanent workers.

Energy Cost Savings Program (ECSP)

It provides reduction for energy costs for your business that (a) move to, (b) make changes to the property in, or (c) rent space in already improved buildings in the Bronx, Manhattan above 96th Street or in Brooklyn, Queens, or Staten Island. ECSP can reduce the expenses of the delivery part of electricity charges by 45% as well as the delivery component of petroleum gas charges by 35%. Benefits can last for 8 years, followed by a 4-year phase out.

How the Bronx has Gained Momentum in Promoting Businesses

The Bronx has made considerable progress :BPC-Campus-2009

The Bronx has made considerable progress :BPC-Campus-2009

The Bronx has made considerable progress since the 1970’s.  Both private and public speculations have made a difference in creating new businesses in the Bronx, which has also produced a large number of new jobs.

Since the economic environment has improved drastically in the Bronx, private investments have accelerated there as well.

In fact, in the times of the Great Recession, the Bronx not only survived but also faced it in a better way as compared to the rest of the nation, as well as the other four major boroughs of New York City.

While the United States is still recovering from the jobs it lost during the recession, the number of jobs in the Bronx has increased without any interference since 2007.

People are choosing to stay and live in the Bronx along with their families because crime rates have decreased greatly and communities have been renewed. The Bronx has additionally turned into a magnet for immigrants who are looking for a fresh start. These components have helped the precinct recapture more than three-quarters of the population lost in the 1970s.

View of Jersey City from the Hudson River

View of Jersey City from the Hudson River

Economic development in the Bronx profits by the district’s closeness to Manhattan’s and New Jersey’s central business district, and it has easy access to the extensive railway and highway networks of the area. It also gets benefits from an incorporated mass transit framework and a still underdeveloped waterfront. The expansion of a suburbanite rail service to Manhattan and to the northern suburbs would also enhance the economic development in the Bronx.

While the Bronx has had awesome developments in the past decades, the borough still faces some challenges. The unemployment rate stays high, educational achievement is low and numerous occupants still live in destitution.

Proceeding with private and public investments in the region as well as in New York City will produce more jobs, but these jobs will require highly skilled or well-educated workers. Job creation in the Bronx and other regions of New York City will open several doors of new opportunity for Bronx residents.

Here are some of the Highlights of Bronx

  • The Bronx has added more than 240,000 occupants from 1980 to 2012, and the numbers are still increasing at a rate of 20%.
  • Private sector employment grew by more than 7.7% from 2007 to 2012, outpacing various districts except for Brooklyn. Since 1983, the Bronx has included 53,600 occupations, which is more than a 33% increase in the job market.
  • Health care, educational service, and social services represented more than half of the private sector jobs in 2012, reflecting the substantial number of medical facilities and foundations of higher education situated in the Bronx.
  • Total private sector compensation was more than $9.3 billion in 2012, which is the highest salary on record. The average private sector pay was $43,610, higher than in Brooklyn and Staten Island.
  • The number of organizations in the Bronx rose by 26% from 1990 to 2011. Business development has been strengthening in the South Bronx, where the number of organizations developed by 25% from 2000 to 2011.
  • Most organizations in the Bronx were small in 2011, but now they are also expanding and the number of jobs, as well as a number of employees working for each firm, has increased.
  • Over the past 25 years, the public sector has created or restored more than 100,000 housing units, and the private sector has added thousands more. Indeed, even with government appropriations, almost one-fifth of Bronx family units spend the greater part of their livelihoods on leases.
  • There has been a reduction of more than 75% in the crime rate since 1990, and the number of murders has fallen by 78% in the last 2 decades.
  • The Bronx is one of the Metro-North Railroad’s fastest developing markets (weekday boardings have tripled since 1985).
  • Several green activities are in progress in the Bronx to decrease pollutants and lower the energy costs for organizations and inhabitants.

At present, Bronx is considered as one of the best places to start your business or to expand your business.  The market is full of opportunities for various sectors, housing being one of them. Several construction projects are in line and are in progress in the Bronx, which will bring more jobs in the borough. The rate of development is increasing, along with the rise in property prices. The Bronx is now booming and the Bronx is Burning.It has been left behind in the past.