Enterprise Zones
Enterprise ZonesAn Enterprise Zone (EZ) program is established by a Federal, State, or Municipal government to stimulate market forces and revive the local economy by providing tax incentives. There are 7200 Zones across the U.S., in 43 States, covering approximately 15% of U.S. land mass. In the California market, only 5% of the estimated 500,000 eligible businesses have tapped into the $300+ million market of unrealized tax credits available to them. This is a clearly defined market of under-served businesses who possess a tangible value to the right banking partner.
The ChallengeToday, less than 10% of eligible businesses in the United States claim benefits under EZ programs. Adoption suffers due to a lack of awareness and understanding. Historically, identification and qualification has required a manual and labor intensive process making it cost prohibitive for all but the most sophisticated companies. Larger corporations with sophisticated resources tend to use these programs while few medium to small businesses have the ability to realize EZ benefits.
ObjectiveIncrease earnings, deposit generation, loan volume, CRA eligibility, and competitive value in the marketplace by incorporating EZ tax credits, incentives, and programs into your bank’s business model.
Goals Improve efficiency, lead generation, and earnings based on a defined plan leveraging EZ tax benefits. Save up to:
• 100% of taxes on interest income earned for qualified business loans (for CA & IL while IN offers apx. 59%)
• $32,000 per qualified employee in California (varies in other states)
• 8.25% of sales tax for qualified purchases in California (varies in other states)
Leverage these savings into a more robust bottom line or employ them to differentiate in the marketplace. Examples:
• Win EZ business over competitors by structuring lending products based on tax credit savings
• Increase deposit generation by incorporating EZ benefits analysis into cash management offering
• Increase compliance and reporting of CRA performance standards. EZ qualified businesses generally meet CRA performance standards, offering the bank an efficient method to define it’s position as an active contributor in community redevelopment.
The ChallengeToday, less than 10% of eligible businesses in the United States claim benefits under EZ programs. Adoption suffers due to a lack of awareness and understanding. Historically, identification and qualification has required a manual and labor intensive process making it cost prohibitive for all but the most sophisticated companies. Larger corporations with sophisticated resources tend to use these programs while few medium to small businesses have the ability to realize EZ benefits.
ObjectiveIncrease earnings, deposit generation, loan volume, CRA eligibility, and competitive value in the marketplace by incorporating EZ tax credits, incentives, and programs into your bank’s business model.
Goals Improve efficiency, lead generation, and earnings based on a defined plan leveraging EZ tax benefits. Save up to:
• 100% of taxes on interest income earned for qualified business loans (for CA & IL while IN offers apx. 59%)
• $32,000 per qualified employee in California (varies in other states)
• 8.25% of sales tax for qualified purchases in California (varies in other states)
Leverage these savings into a more robust bottom line or employ them to differentiate in the marketplace. Examples:
• Win EZ business over competitors by structuring lending products based on tax credit savings
• Increase deposit generation by incorporating EZ benefits analysis into cash management offering
• Increase compliance and reporting of CRA performance standards. EZ qualified businesses generally meet CRA performance standards, offering the bank an efficient method to define it’s position as an active contributor in community redevelopment.