Business Incentives & Financing Programs

Opportunity Zones

Opportunity Zones are economically distressed communities, identified by individual census tracts, nominated by state governors, and certified by the U.S. Department of the Treasury. Under certain conditions, investments in these areas may qualify for preferential federal tax treatment.

There are more than 8,700 Opportunity Zones nationwide, many of which have experienced decades of underinvestment. This initiative encourages private and public investment in underserved communities through market-driven incentives.

The City of Hitchcock includes a designated Opportunity Zone. Learn more: Hitchcock Opportunity Zone

New Markets Tax Credit (NMTC) Program

Established in 2000, the New Markets Tax Credit Program helps attract private capital to economically distressed communities by offering federal tax credits to investors. These investments support businesses that revitalize underserved areas.

Through a competitive process, the CDFI Fund allocates tax credit authority to Community Development Entities (CDEs), which serve as financial intermediaries connecting investors with qualifying businesses. Investors may receive a tax credit equal to 39% of their original investment, claimed over seven years.

Hitchcock contains eligible NMTC areas, providing valuable financing opportunities for qualifying projects.

USDA Rural Development (OneRD Loan Program)

The OneRD Loan Program (formerly the USDA Business & Industry Guaranteed Loan Program) supports creditworthy businesses in rural areas by providing loan guarantees to lenders.

  • Loan guarantees up to $25 million
  • Loan terms up to 40 years
  • Competitive, lender-negotiated interest rates

This program supports a wide range of business purposes and helps improve access to capital in rural communities. Portions of Hitchcock qualify for USDA Rural Development programs.

SBA 7(a) Loan Program

The SBA 7(a) program provides flexible financing options for small businesses, with loan guarantees of up to 90% and a maximum loan amount of $5 million.

Eligible uses include:

  • Purchasing, refinancing, or renovating real estate
  • Working capital
  • Debt refinancing
  • Equipment and inventory purchases
  • Business acquisition

Basic eligibility requirements:

  • For-profit U.S.-based business
  • Meets SBA size standards
  • U.S. ownership

SBA 504 Loan Program

The SBA 504 program offers long-term, fixed-rate financing for major capital investments that promote economic development.

  • Loans up to $5 million (or $5.5 million for manufacturing and green energy projects)
  • Structured financing:
    • 50% private lender
    • 40% Certified Development Company (CDC)
    • 10% borrower contribution

Eligible uses:

  • Real estate acquisition or construction
  • Long-term machinery and equipment

SBA Microloan Program

The SBA Microloan Program provides loans up to $50,000 (average ~$13,000) to support small businesses and certain nonprofit childcare centers.

These loans are delivered through nonprofit intermediary lenders and can be used for:

  • Working capital
  • Inventory and supplies
  • Equipment and machinery
  • Furniture and fixtures

Microloans are ideal for businesses needing smaller amounts of capital to start, rebuild, or expand operations.


SBA HUBZone Program

The HUBZone program promotes economic development in historically underutilized business zones by helping small businesses gain access to federal contracting opportunities.

  • Goal: Award at least 3% of federal contract dollars to HUBZone-certified businesses
  • Benefits include:

Basic eligibility requirements:

Hitchcock includes eligible HUBZone areas. Learn more: Hitchcock HUBZone

Work Opportunity Tax Credit (WOTC)

The WOTC Program is a federal tax credit that incentivizes employers to hire individuals from targeted groups who face significant barriers to employment.

  • Tax credits range from $1,200 to $9,600 per employee
  • Helps businesses reduce federal income tax liability
  • Supports workforce development and economic self-sufficiency