1. GDEcD

2. Georgia Department of Economic Development
Integrated approach to economic development to facilitate jobs and investment opportunities around the state:
Attract new business investments
Assist business & existing industry expansion
Encourage/support small businesses
Locate new markets for Georgia products
Attract tourists
Increase entertainment production
Strengthen companies through innovation
Expand international relationships
Promote the arts
Grow the state’s workforce

3. direct services to small business
Small Business Resources
direct services to small business
Small Businesses Served: / / 75% & 25%
Upticks: film / new markets / home healthcare
doing business in GA / relocating
EIRR Expansions: >50% employ less than 100
Exports: % employ less than 100
Monitor business legislation
Local Support
Served: just 3 of us on the SB team – other agencies and departments get thousands of calls throughout the year too
Upticks: What’s interesting regarding the most frequently asked questions – we have a (unscientific) breakdown of what we’re seeing:
Top 3 questions – statewide but mostly Metro Atl (unchanged in 5 years):
      1-   General/start
      2-   Funding
      3-   Certification
Top 3 questions – rural GA
           
1-Funding/incentives
2-General/start
3-Relocation of business
Top 3 questions – women & minority communities
1-General/start
2-Procurement
3-Marketing

4. the numbers…
757,074
99.7% %
97.3% %
(< 500) < 50
< < 10
business establishments representing
GA employment & paying UI (3Q17)
While there are over 700K registered businesses in GA, these figures the measurements and benchmarks of the GDOL.

5. the numbers… $100 / $68 / $43 / $0 90% 97% / 100 #2 and #5 750,000+ #9
$ / $68 / $43 / $0
90%
750,000+
97% / 100
#2 and #5 #9
US: 29M SMBs / <500
#1 / % / 2008
15% / VOBs
If $100 are spent in a locally owned independent business, $68 stay in the community
If $100 are spent in a local chain store, $43 stay in the community
If $100 are spent on the internet, besides sales tax, zero stays in the community
90% of what entrepreneurs learn they learn from each other
Over 600K registered businesses in GA
Almost 98% employ under 100
We are #2 in US in growth in # of women-owned firms and #5 in greatest number of women-owned firms
We are #9 in US as most entrepreneurial state with having the top average of SBA loans and we are #5 in highest growth in SBA loans,
We are #1 for best state to do business for 5th year running
US: there are 29M SMBs in US that employ under 500
66% of all jobs created in US since 2008 recession were created by SMBs
15% of US businesses are VOBs

6. where do we rank? #1 best state for business
#2 growth in number of women-owned firms
#5 greatest number of women-owned firms
#7 growth in economic clout of women-owned firms
#9 most entrepreneurial state/SBA loans
“A” overall small business friendliness
Best Large Cities in GA to Start a Business:
Atlanta # Augusta # Columbus #67

7. technology, a top industry
Top 10 technology employment $30b payroll
Software, IT, Telecom = <50% of total tech employment
8K new jobs in 2016
High tech jobs w/in Media & Entertainment grew nearly 17%
Top 20 for average tech industry wages at $94,915
Small business lead way in # of firms within Professional, Scientific, Technical Services industry and IT
68% tech jobs are in Atlanta (Athens, Columbus, Savannah)
newest jobs in SW, IT, Telecom:
: internet, multi-media, software, biosciences
Source: TAG 2017

8. small firm employment numbers by industry, 2015
Accommodation and Food Services ,117
Healthcare and Social Assistance ,275
Professional/Scientific/Technical Services ,863
Retail Trade ,117
Other Services (except public administration) ,544
Construction ,229
Manufacturing ,209
Admin. support/Waste
Mgt./Remediation Svc ,691
Educational services ,684
Source: “Small Business Profile – Georgia.” U.S. Small Business Administration

9. The ED process
Recruitment, Expansion & Retention - Global Commerce Div.
We recruit with partners:
Utilities (GA Power, GA EMC, ECG)
Atlanta Metro Chamber (MAC)
Local ED
We get leads from:
Utilities / Consultants / Brokers / Local ED / Companies
Marketing: industry-specific trade shows / missions / ads
Marketing trips: visiting consultants, corporate HQ, etc.

10. The ED process The Project Lead:
Gathers team: assesses / coordinates / responds
Stresses confidentiality / code name / NDA
RFIs – state and local responses
Scheduling visits to communities (consultant already identifies via websites)
Communities prep, follow lead

11. The ed process Proposal: all resources / incentives on the table
Based on Jobs, Investment, Impact
State incentives
statutory / discretionary / supportive
Local incentives
tax abatement - real and personal property
free land / building / grading

12. LOCAL Property Tax Incentives
Property Tax Abatements - Local
- local incentives programs vary
- real and personal property (must qualify / be feasible)
- public ownership of assets through title transfer
and lease back

13. GA Department of Economic Development Global Commerce
Sales & Marketing arm for the state
Regional Project Managers
Work with existing companies on expansion projects
Recruit new companies targeted for their region
Provide regional expertise and local connections

14. Pro-Business Environment - Low Taxes and Tax Credits
Low Effective Tax Rate
6% Corporate Income Tax Rate
Single Factor Apportionment
Corporate Tax Credits
Job Tax Credit
Investment Tax Credit
Port Tax Credit Bonus
R&D Tax Credit
Retraining Tax Credit
Child Care Tax Credits (

15. Job Tax Credits Based on tier structure & NAICS code - Region 3:
Tier 1 $ jobs % tax liability – excess to withholding
Tier 2 $ jobs 100% tax liability
Tier 3 $ jobs 50% tax liability
Tier 4 $ jobs 50% tax liability
Average (base) salary: above lowest county’s monthly average
Taxable year / Carry over 10 years
Tier 1: Clayton
Tier 3: Fulton, DeKalb, Douglas, Rockdale
Tier 4: Cherokee, Gwinnett, Cobb, Henry, Fayette

16. Job Tax Credits Opportunity Zone (any tier, any NAICS)
$ jobs % of tax liability – excess to withholding
Military Zone (any tier, any NAICS)
Less Developed Census Tract (requires eligible NAICS)
$ jobs % of tax liability – excess to withholding

17. Job Tax Credits Quality Job Tax Credits Job creation threshold: 50
Average salary: 110% of county’s average wage
Fulton: $72, %: $79,794
100% tax liability – excess to withholding
Any tier / any NAICS / any 24 months / $5000 max.

18. Tax Credits Investment Tax Credit R&D Tax Credit Retraining Tax Credit
- no Job Tax Credits (either / or)
- 1% of qualified investment (eligible NAICS)
R&D Tax Credit
- startups & existing businesses
- value = to 10% of increased qualified R&D expenses minus base
Retraining Tax Credit
- on new technology / 16-week employment
- technical college approval
- offset 50% tax liability

19. Sales & Use Tax Exemptions
Computer Hardware & Software for High-Technology Companies
- exceed $15M in calendar year
- software, servers

20. Supporting the Ecosystem … for the long term
Georgia Quick Start
Start High Demand Career Initiative
FinTech-specific curriculum
Innovation / product development centers
Joint FinTech-related hackathons
Company / student idea exchange
Security hackathons
Innovation thought leadership program

21. Mary Ellen McClanahan
Director, Small Business & Project Manager – Metro
Georgia Department of Economic Development /