Business Incentives offered by City of Sullivan
1. Tax Increment Financing (TIF)
Sullivan has four TIF districts. A business can apply for TIF by completing an application and returning it to the City Administrator located at 2 West Harrison Street in Sullivan. The application must be returned prior to any work beginning on the property. The applicant must then negotiate with the city a percentage of the property tax increment to be returned to him/her each year over the life of the TIF. When work on the property is complete, receipts for all eligible expenses must be given to the city. To receive reimbursement, each year, the property owner must send a copy of his paid property tax receipt to the City Treasurer. Reimbursements will continue until the total approved expenses are paid out or until TIF expires.
TIF 1 - Expires 2021
TIF 2 - Expires 2026
TIF 3 - Expires 2024
TIF 4- Expires 2040
Sullivan has four TIF districts. A business can apply for TIF by completing an application and returning it to the City Administrator located at 2 West Harrison Street in Sullivan. The application must be returned prior to any work beginning on the property. The applicant must then negotiate with the city a percentage of the property tax increment to be returned to him/her each year over the life of the TIF. When work on the property is complete, receipts for all eligible expenses must be given to the city. To receive reimbursement, each year, the property owner must send a copy of his paid property tax receipt to the City Treasurer. Reimbursements will continue until the total approved expenses are paid out or until TIF expires.
TIF 1 - Expires 2021
TIF 2 - Expires 2026
TIF 3 - Expires 2024
TIF 4- Expires 2040
2. TIF Loan
This program is a collaboration between the City of Sullivan with the three local banks in Sullivan: First Mid-Illinois Bank & Trust, First National Bank and Scott State Bank. Applications must be made at one of the three banks. In this program, the banks provide 75% of the loan amount at a rate of Wall Street Prime + 1% (locked for no more than 3 years) and the city provides 25% of the loan amount out of TIF at 1% interest, thereby lowering the overall interest. Applicants must be located within one of the three TIF districts to qualify.
This program is a collaboration between the City of Sullivan with the three local banks in Sullivan: First Mid-Illinois Bank & Trust, First National Bank and Scott State Bank. Applications must be made at one of the three banks. In this program, the banks provide 75% of the loan amount at a rate of Wall Street Prime + 1% (locked for no more than 3 years) and the city provides 25% of the loan amount out of TIF at 1% interest, thereby lowering the overall interest. Applicants must be located within one of the three TIF districts to qualify.
