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Business Assistance

Assistance may be available to companies who are locating or expanding in Alabama through grants, loans, and other programs available through federal, state, and local government sources. Additionally, individual counties may be able to provide additional assistance.

Financing Incentives and Programs

More information about these programs can be found on the Alabama Department of Commerce website.

USDA Rural Utility Service Zero Interest Loans

Federal, low-interest loans made through Wiregrass Electric Cooperative for project feasibility studies, start-up costs, incubator projects and other reasonable expenses. Amount for loans ranges from $10,000 to $400,000. To qualify for the loan, a letter of credit is required from the borrowing company. Terms are up to 10 years and deferrals of payments are possible. Selection of recipients is based on job creation, unemployment rates and other factors.

Dothan-Houston County Microloan Program

The program will provide direct and gap financing to businesses and individuals that are sound and growing, but cannot obtain adequate financing to carry out a new or expanding project. Loans are available from $4,000 to $20,000, or up to a maximum of 90% of the project cost. The microloan fund is made possible through partnerships with the Southeast Alabama Regional Planning and Development Commission, area banks, city of Dothan, Houston County Commission and Dothan Area Chamber of Commerce.

ADECA Float Loan

The ADECA Float Loan program provides up to $10 million dollars for expanding companies, calculated at $35,000 per job. This is a one year loan, and can be extended once for another year. Interest rate generally run ½ to 1 ½% and the new hires must meet our 51% LMI (low-to-moderate) guidelines.

Industrial Development Grant Program (Site Prep)

Grants awarded to counties, municipalities, development boards or authorities, port authorities, or public corporations for site preparation or rehabilitation of an existing building or structure that is necessary to attract a qualifying project. The size of the grant is dependent on amount of capital investment.

Industrial Revenue Bonds (IRBs)

Tax-exempt bonds up to $10 million can be issued covering all or part of the cost of land and building acquisition, construction, furnishings and some soft costs.

Alabama Infrastructure Grant Program

Helps finance water, sewer and road facilities.

Industrial Access Road and Bridge Program

Covers cost of construction, construction engineering, and inspection costs when providing public access through roads and bridges to new or expanding manufacturing, distribution or industrial firms.

Certified Capital Company Program (CAPCO)

Provides an alternative to conventional bank financing to accommodate a slightly higher risk profile and provide a more flexible structure for growing businesses.

SBA 504

Fixed-rate, long-term financing below conventional market rates for real estate acquisition, construction, expansion, renovation and equipment. 50% bank loan, up to 40% SBA and 10- to 20-percent cash or equity from the company over 10 - 20 year terms. Limited to $750,000 participation by SBA and based on job creation of one job per $35,000 of SBA funding.


Long-term financing for fixed assets, inventory and working capital by guarantee or direct loan. 10 years for equipment, 25 years on real estate, and 7 years on inventory and capital.  Limited to 75% on maximum loan amount of $1,500,000

CDBG Economic Development Grant

Grants are available to new or existing businesses that provide land, facilities and infrastructure such as water lines, sewer lines, rail spurs, docks, cranes, access roads, etc. to facilitate the creation and/or retention of jobs. The grant ranges from $200,000 to $350,000. A local match will be included of at least 20%. To qualify, the grant must be associated with the location of a new business or expansion of an existing business that creates 15 or more jobs. At least 51% of the project beneficiaries must be persons of low and moderate income.

Other Programs and Incentives

Regional Revolving Loan Funds for Economic Development

Fixed rate financing, at below market rates, for business startups or expansions and economic or community development projects is available through the Southeast Alabama Regional Planning and Development Commission.

Learn more at Southeast Alabama Regional Planning and Development Commission.

Learn more about Pike County’s economic development incentive from the South Central Alabama Development Commission.

AlabamaSAVES Loan Program

The AlabamaSAVES (Sustainable and Verifiable Energy Savings) ) Loan Program is a low interest financing to commercial and industrial firms for including energy-saving improvements in facilities. Learn more at AlabamaSAVES.com.

One-Stop Environmental Permitting

Environmental Permitting available for businesses and required by all major federal environmental laws. Learn more.

PowerSouth Funding Programs

Funding programs for local communities as well as new and existing industries include the Business Development Loan Program and several Revolving Loan Funds. Learn more at PowerSouth Energy Cooperative.

The Southeast Alabama Council for Economic Development is a consortium of counties actively working together to

Barbour County, AL | Bullock County, AL | Butler County, AL | Coffee County, AL | Covington County, AL | Crenshaw County, AL | Dale County, AL | Geneva County, AL | Henry County, AL | Houston County, AL | Pike County, AL

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