Movers and Takers Are you getting stiffed on relocation incentives?
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States across the country enthusiastically wave the banner ofbusiness friendliness. But when it comes to handing out financialincentives, most companies miss out.
According to a survey released in September 2002 byPricewaterhouseCoopers, one in four of the small and middle-marketcompanies received help to fund expansion or relocation plans.Those who qualify for tax breaks, low-interest loans and cashgrants were also more likely to be manufacturers than servicecompanies, though service businesses represent a faster-growingsector of the economy.
Both trends signal a gulf between expanding businesses and stateand local governments. "State and local jurisdictionsdon't target the middle-market companies to the extent they dobigger companies," says Steve Hamm, managing partner ofmiddle-market advisory services for PricewaterhouseCoopers in LosAngeles, "and [smaller] companies are often not savvy aboutthese opportunities."
Some businesses don't make the cut. "Incentives have tomake economic sense to both sides of the table," says MarkKilduff, executive director of the Virginia Economic DevelopmentPartnership in Richmond. Virginia was rated in the study as one ofthe top 10 states most willing to negotiate incentives. New Yorkand California were the least flexible or welcoming for fast-growthcompanies.
"Small companies think 'We're not big enough forincentives,'" Hamm says. Firms can improve their chancesby planning a move or expansion ahead of time so they can apply forincentive programs nationwide. "Every state has a Website," says Kilduff. "pend time to see what'savailable."
