Zone Business

Our grant and scholarship applications can be found at Bloomington CiviForm. Building Improvement, Accessibility Modification, and Safety & Security Grants are housed under the BUEA Major Building Improvement Program on the CiviForm page.

Please email buea@bloomington.in.gov with any questions about the following items.

Grants & Scholarships

2024 Business Economic Enhancement Scholarships -

Scholarships of up to $1,200 for professional development opportunities to further the economic stability of the business/organization that has operated within the Zone for at least 12 months.

• Applicants must own a business or non-profit within the Zone that has operated for at least 12 months.
  • Applications are accepted biannually (February & August) and on a first-come-first-serve basis each year, with a lifetime maximum of $1200.00 per business.
  • The scholarship may be used to pay for economic development classes, business workshops, professional organization membership dues, or conference registration fees for the business owner or any business employee.
  • Applications must be received at least one month before the start of the class(es) or activity being paid for with the scholarship.

• After the application is completed, BUEA staff will reach the Applicant requesting proof of payment for the course, workshop, dues, or registration fees or an invoice from the organization conducting the training if you would like the BUEA to pay the organization operating the activity directly.

Small Business Safety & Security Grant

This grant aims to improve the Enterprise Zone's overall safety and security. The Safety & Security Grant is for small business owners who want to improve the general security of their businesses in the Enterprise Zone. 

A total of $25,000 will be awarded in the 2024 fiscal year.  The maximum award amount will be at the discretion of the BUEA board. However, staff recommends a $ 5,000 max award per Applicant.

• Application Requirements
  • A cost estimate, a "before" photo, plans, and all other pertinent information regarding project costs.
    • Assessments must consist of materials/product list breakdowns.
    • Images/video of "before" status.
    • Describe their business security system project and the contractor's quote or invoice.
  • Applicants must attach proof of business address, i.e., utility bill, the current lease, or deed.
  • Applicant must be able to match at least 25% of the total project cost.
    • Example: If the project costs $5000,  you must be able to show $1250 of personal financing for the project.
  • A business security system project must have one or more primary purposes:
    • Crime reduction
    • Theft prevention
    • Vandalism prevention
  • An approved security system must be installed within the funding period.
  • Applicant must submit "after" photos and a short report to the board before the termination date of the memorandum of understanding (MOU)
  • Applicants are limited to a one-time-only grant award
  • This grant may not be used to support the purchase of weapons or devices that may cause physical harm to humans or animals.
  • The Board holds the right not to approve any project they deem unsuitable for this grant. 

Business Building Improvement Grant 

This grant aims to improve the physical condition of business buildings in the Enterprise Zone and promote economic vitality and beautification of the community in the Enterprise Zone. This grant seeks to assist small business owners in updating and improving internal and external visual improvements, preservation, and structural integrity.

A total of $25,000 will be awarded in the 2024 fiscal year. Max award amount will be at the discretion of the BUEA board. However, staff recommends a $5000 max award per Applicant.

• Application Requirements
  • Applicant must be able to match at least 50% of the total project cost.
    • Example: If you are asking $5000,  you must be able to show $2500 of personal financing for the project.
  • A cost estimate, a "before" photo, plans, and all other pertinent information regarding project costs.
    • Assessments must consist of materials/product list breakdowns.
    • Proof of business address, i.e., utility bill, the current lease, or deed.
    • Images/video of "before" status.
  • Describe their building improvement project and the contractor's quote or invoice.
  • Projects eligible for grant approval include
    • exterior painting/cleaning, historical restoration, awnings, roofs,  guttering, replacing windows, and repairing sidewalks. Ineligible projects include new signage.
    • Exterior improvements must follow the style approved in the downtown design plan. A Certificate of Appropriateness must be obtained before starting work if the building is in a historic district.
  • Work on the property may start after board approval.
  • ​​A contractor registered with the city must do construction work and obtain any necessary permits before applying.
  • Applicant must submit "after" photos and a short report to the board before the termination date of the memorandum of understanding (MOU)
  • BUEA can rebate the property owner after work is complete, and the Applicant provides a final bill, copies of canceled checks for the Applicant's half, and an "after" photos of the completed work. However, the Board reserves the right to provide funding if improvements or repairs are in progress.
  • Applicants are limited to a one-time-only grant award.
  • The Board holds the right not to approve any project they deem unsuitable for this grant. 

Accessibility Modification Grant

The Accessibility Modification Grant provides grant-based assistance for businesses to make their small businesses ADA-accessible and promote inclusive practices for people with disabilities. This grant aims to improve the BUEZ's social and physical environment through accessibility modifications in the Enterprise Zone. This grant intends to help business owners complete ADA modifications that do not meet the requirements due to grandfathered plans. Businesses can use the funding to update their ADA-accessible areas, entrances, signage, low shelves, restroom accessibility, & parking space.  

A total of $25,000 will be awarded in the 2024 fiscal year. Max award amount will be at the discretion of the BUEA board. However, staff recommends a $5000 max award per Applicant.

• Application Requirements​​​​​​
  • Applicant must be able to match at least 25% of the total project cost.
    • Example: If you are requesting $5000, you must be able to show $1250 of personal funding for the project.
  • Applicants must attach proof of business ownership address, such as a utility bill, lease, or deed.
  • Applicants must briefly describe their accessibility modification project and the contractor's receipt or invoice.
  • Eligible projects include improving accessible areas, signage, entrances, low shelves, restroom accessibility, sidewalks & parking space.
  • Work on the property may start after application approval.
  • A cost estimate and a "before" photo accompany the application and include plans and all other pertinent information regarding project costs. Assessments must consist of materials/product list breakdowns. The owner makes a selection of contractors.
  • Applicant must submit "after" photos and a short report to the board before the termination date of the memorandum of understanding (MOU)
  • BUEA can rebate the property owner after work is complete, and the Applicant provides a final bill, copies of canceled checks for the Applicant's half, and an "after" photos of the completed work. However, the Board reserves the right to provide funding if improvements or repairs are in progress.
  • Applicants are limited to a one-time-only grant award.
  • The Board holds the right not to approve any project they deem unsuitable for this grant. 

Historic Facade Preservation Grants - 

This grant is currently unavailable through CiviForm.

Please contact noah.sandweiss@bloomington.in.gov for information about this program.

Grants of up to $10,000 with 100% matching required

BUEA allocates a limited annual funding pool to businesses to rehabilitate and preserve historic facades in the Urban Enterprise Zone.  Grants are designed to protect and enhance Bloomington's historic character by preserving and rehabilitating its historic downtown environment and maintaining structurally sound places of business.

Summary:
Grants are awarded at most $10,000, requiring the Applicant to match at least 100% of the grant award. 

I.E., an applicant would require a $20,000 total facade rehabilitation project cost to be eligible for the entire $10,000.

• Commercial, non-profit, and industrial properties are eligible for the grant,
• The grant may only be used for the costs associated with actual and approved façade rehabilitation and other expenses relating to the requirement of various building codes.
• Grants are awarded on a rolling basis until annual funds are exhausted.

The Historic Preservation Commission will review all applications before approval. Guidelines are available here - link to guidelines.

The Mill Day Pass Program

For residents who live in the Zone. Up to 1-day pass per month through December 31, 2025, to work at the Mill—Bloomington's Center for Coworking and Entrepreneurship, located at 642 N. Madison St. (Just north of City Hall and across from Upland Brewing). Reserve your work area here - link to reservation calendar!

Incentives 

Tax Incentives

BUEA offers tax incentives among the most immediate and robust economic development incentives. Urban Enterprise Zones are intended to encourage neighborhood development and economic growth through tax and regulatory relief to entrepreneurs and investors who launch businesses in the area. The following describes the tax incentives for involvement, which serve as recruitment tools for the EZs:

Enterprise Zone Investment Deduction (EZID)
Each EZID has a life of 10 years as described in Indiana Code (IC) 5-28-15 and IC Title 6. Tax benefits include:

Real Property Tax Investment Deduction:

The Enterprise Zone Investment Deduction is available to businesses within the Bloomington Urban Enterprise Zone that invest in real property and outside the TIF district for businesses that make real property investments.  

Personal Property Tax Investment Deduction:

The EZID personal property tax deduction reduces the increase in the assessed value of a business's tangible personal property investment within the enterprise zone. The deduction may be declared for up to ten years. Qualified investments at an EZ location include:

• The purchase of new manufacturing or production equipment;
• Costs associated with the repair, rehabilitation, or modernization of an existing building and related improvements;
• Onsite infrastructure improvements; and
• Costs associated with retooling existing machinery.

How the EZID Works

Participation in the EZID programs requires the annual filing of the forms listed below and an annual payment of the participation fees—a percentage of the tax savings, which supports the program's administration on state and local levels and all local programming.

To receive the benefit:

1. Email BUEA@bloomington.in.gov to inquire about your investment.
2. Register your investment with the BUEA by filing an EZB-R form by June 1, the first year of your increase in assessed value, and for each year you wish to claim the benefit.
3. Report your investments by filing the EZ-2 between March 1 and May 15 annually with the Monroe County Auditor's office.
4. Pay your participation fees annually after the registration year by paying the amount listed on your EZID invoice to the BUEA and the AIEZ (Association of Indiana Enterprise Zones).

Employee Income Tax Deduction (IC 6-3-2-8)

Employees who live and work in an enterprise zone may qualify for an income tax deduction. To qualify, the employee must:

• Work for a business, nonprofit, or government entity in the enterprise zone.
• Spend at least 90% of their work time on tasks related to the business in the zone.
• Perform at least 50% of their work in the zone during the year.
• Live in the enterprise zone.

The tax deduction is the smaller amount of:

• 50% of their income earned in the zone, or
• $7,500.

Qualified Employee Deduction Certificate (IT-40QEC) Form    

Tax Forms     

EZ-2  - Enterprise Zone Investment Deduction Application 

Schedule EZ - Enterprise Zone Schedule 1, 2, 3 & Instructions 

EZID Forms 

Form EZB-R - Enterprise Zone Registration 

EZB-R Instructions

Form EZB-E - Request Time Extension 

Employment Expenses Credit

A business may apply a credit to its gross income tax or adjusted gross income tax liability for wages paid to qualified employees. A "qualified employee" includes:

• One who lives in the EZ;
• works 50% of their time in the EZ; and
• At least 90% of their services are directly related to the employer's facility in the EZ.

The annual credit is applied after all other Indiana credits against state income tax liability (either gross income tax or adjusted gross income tax). Credit earned that exceeds tax liability may be carried back or brought forward to other tax years.

To claim the employment expense credit, an employer must:

1. Indicate the amount of credit for which they are eligible on Schedule EZ.
2. File Schedule EZ with an annual tax return.

On their Indiana State Income Tax return, Qualified Employees may deduct ½ of their Enterprise Zone income, or $7,500, whichever is less.
The employee’s employer must complete (sign) Schedule IT-40QEC. The employee should attach this form to their State Tax return.

Contact Us

For additional information, please contact: BUEA@bloomington.in.gov 

For more information about economic development, workforce development, and community development benefited by designated zones of the Association of Indiana Urban Enterprise Zones (AIEZ), please visit: https://aiez.org/