IRVINE : Business Incentives Plan to Be Unveiled

The city’s first-ever “business incentives package,” an aggressive program to expand local business opportunities, will be unveiled at a seminar today at City Hall.

City finance experts will discuss plans to make low-interest loans available to small and medium-sized businesses through the sale of “industrial development bonds,” in addition to a small-business loan program.

The city plans to sell the tax-free bonds to finance the proposed loan program, which would make from $1 million to $10 million available to manufacturing and light industrial businesses.

The city assumes no risk for the loans but will act as an intermediary between the applicants and the banks, according to associate city planner Peter Cox. The sale of the bonds is authorized by the state. The meeting begins at 3 p.m.

“The way we are structuring it, the business incentives package is a first for the city,” Cox said. “The whole idea is to work with the private sector and the banking community to provide financial incentives that the city of Irvine cannot provide.”

In September, the City Council rejected part of the proposed incentives package that would have provided $500,000 in federal funds to small businesses. Although the program was endorsed by the Irvine Chamber of Commerce, council members said the program would place the city in the awkward position of picking “winners and losers” among loan applicants and foreclosing on businesses that fail.

For more information, call (714) 724-6364.