2004 Business Assistance Report

Executive Summary
This report summarizes business subsidy agreements signed in 2003; agreements signed in previous years are summarized in the appendices. To ease review of project performance, project data has been aggregated into one section for each report year.

The activity levels and total value of business assistance have varied significantly from year to year as reported by state and local government agencies. There were 68 business assistance agreements reported by government agencies in 2004 for 2003 activity compared to 197 agreements reached in 2000. The total value of business assistance provided has also varied significantly from year to year - from a high of $611.4 million in 2000 to $29.4 million in 2003.

Of the 565 state and local government agencies that were required to file in 2004 either because of population size or previous business subsidy activity or current activity in 2003, 282 agencies submitted a MBAF and 283 agencies did not submit a form.

Of the 282 agencies that submitted a form, 47 agencies reported on 68 eligible business assistance agreements that were reached between January 1, 2003 and December 31, 2003. The $29.4 million of business assistance provided by those 68 agreements ranged from a $27,680 tax abatement to an $8.0 million loan agreement. There was also one eligible financial assistance agreement reported by a city agency that was $244,625 in assistance for renovating building stock and for designated historic preservation districts.

There were 68 eligible business assistance agreements reported by government agencies in 2004 for 2003 activity. Of the 68 business assistance agreements reached between January 1, 2003 and December 31, 2003, agencies reported that 17 recipients (25 percent) had achieved all stipulated goals and obligations compared with 51 recipients (75 percent) that have yet to achieve all goals and obligations.

All agencies reported that recipients had more time to meet their goals and obligations. The total value of those 17 agreements was $10.7 million (36.5%) compared to $18.7 (63.5%) outstanding. The total value of business assistance provided was $29.4 million.

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