Oxford and Lafayette County are committed to new and existing industry. This is demonstrated by the favorable tax incentives and finance programs offered locally and throughout the state of Mississippi. As an added advantage, our local Economic Development office can assist you with public and private sources for financing.
Financing Programs
Programs are administered by the Mississippi Business Finance Corporation (MBFC), which is the financing arm of the Mississippi Department of Economic and Community Development. MBFC is a non profit public corporation which blends public and private capital at competitive rates.
| Program Name | Maximum Loan Amount | Loan Term | Benefits | More Information |
|---|---|---|---|---|
| Industrial Development Revenue Bond Program | $10 million | 10-20 years, public or private placement | Tax exemption on eligible items purchased with bond proceeds. Ad valorem tax exemption (except school tax) available. Generally lowers effective cost than private financing. | For manufactures or processors who wish to finance land, buildings, fixtures, equipment and machinery. |
| MS Small Enterprise Development Finance Program (SED) | $200,000 to $2 million | 20 years maximum | Generally lowers effective cost than private financing. | For manufactures in processors who will increase employment and investment in small communities. Must create a minimum 10 jobs. For land, buildings, and equipment. |
| SBA 504 Loan Program | Up to 90% of capital required for new or expanding industry or business (excludes working capital). | 20 years fixed rate maximum (on SBA portion) | Long-term, fixed-rate financing for small businesses to acquire major fixed assets for expansion or modernization | Used for land, buildings, machinery, equipment and renovations. |
| Mississippi Loan Guaranty Program | $500,000. Maximum guarantee is 75%, not to exceed $375,000. | 20 years maximum | Lending institutions are more likely to provide financing | Designed for start-up or expansion of a small business, including fixed assets, working capital, and start-up. Must be turned down by two lenders prior to application. Collateral required to secure loan. |
| MS Small Enterprise Development Finance Program | $2 million fixed assets only (land, building, and equipment) | 20 years maximum | Must create a minimum of 10 jobs. Loans made to manufactures or processors who will increase employment and invest in small communities. Letter of credit required. |
Other
Several Federal agencies from time to time have sources of money available on a competitive basis. HUD, EDA, SBA, FmHA all can be considered in packaging your loan though our development office.
Tax Incentives – Selected List of Incentives
The state of Mississippi offers a variety of tax incentives to new and existing business and industry. View a full list of incentives by going to the Mississippi Development Authority website.
The Mississippi Department of Revenue website has more detailed information about Mississippi taxes and incentives. Download Mississippi Tax Incentives, Exemptions, and Credits (PDF, 1.7 MB) for a detailed listing.
| Program Name | Incentive Applies To | Length of credit | Amount of credit | Eligibility/Application |
|---|---|---|---|---|
| Industrial Property Tax Exemption | Ad valorem taxes | 10 years maximum | Real and tangible property ( land, buildings, machinery, and equipment). School tax is not exempted | |
| Jobs Tax Credit | State income tax | 5 years maximum | 2.5% of payroll per year (not more than 50% of tax liability for each year) | Manufacturers that create 20 or more jobs |
| Manufacturing Investment Tax Credit | State income tax | Unused credits can be carried forward for 5 years | 5% of eligible investment in buildings and/or equipment. Can not exceed $1 million. May offset 50% of liability. | Existing manufacturers |
| National or Regional Headquarters Tax Credit | State income tax | Unused credits can be carried forward for 5 years | $500-$2,000 for each new job | Companies moving regional or national headquarters to Lafayette County |
| Advantage Jobs Incentive Program | Payroll taxes | 10 years maximum | Percentage of Mississippi payroll | Must create new jobs that meet or exceed average annual wages in Lafayette County and meet other criteria. |
| National or Regional Headquarters Sales Tax Credit | Sales and use tax | Exemption | For building materials used in the construction or improvement of a facility and the machinery used in production of materials at facility. For companies moving regional or national headquarters to Lafayette County. At least 35 new jobs must be created. | |
| Sales and Use Tax Exemption for Construction or Expansion | Sales tax | 50% sales tax exemption on building materials, equipment or other assets | Eligible businesses that construct or expand a facility |
