A lot of people have mixed feelings about tax abatements. They welcome new business and business expansion, but the new revenue that should come in from the development suddenly disappears.
Like it or not, abatements are a permanent fixture in the world of business growth. If a state or community doesn’t offer a tax incentive, the development is likely to go elsewhere.
Sherwood State Bank knows how to make an abatement a much more attractive proposition. It’s taking the tax cut and returning it back to the community of Fayette.
A fixed share of the abated taxes goes to the school district, as always, to keep education funding on par. The remainder? That’s where Sherwood has taken a unique approach.
Typically a company wants that cash to help cover the costs of development. Not in this case. The money will be placed into a revolving loan to help bolster local business needs.
Not only that, both the school and loan fund will receive lump sum payments at the start rather than carrying over a 12-month period.
It’s an abatement approach that hasn’t been seen in this area. Sherwood’s arrival in Fayette was unusual, too. Typically a bank wants to construct a new building to suit its needs, but Sherwood undertook an extensive remodeling project to turn an old, vacant building into a beautiful new space.
Now that’s the kind of neighbor you like to move into the neighborhood. Welcome, Sherwood. We’re glad that you came this way.