Community Profile

The mission of the Kilgore Economic Development Corporation (KEDC) is to maintain and increase the tax base of Kilgore and the number of permanent jobs available for Kilgore citizens.

The vision of KEDC is the strengthening and diversification of the industrial and service sectors of the local economy.

Demographics

The following chart shows trending population demographics in the Kilgore labor market, which extends from Kilgore to an approximately 30-minute drive time area. 

Age Structure

 
Age Structure 2009 Estimate

Number

0-4 Years 29,729
5-14 Years 54,266
15-19 Years 27,471
20-24 Years 27,599
25-34 Years 57,039
35-44 Years 49,457
45-54Years 52,501
55-64 Years 42,834
65-74 Years 28,897
75+ Years 27,603
Median Age: 35.5
Source: Sites On Texas

Population Density

Population Density for Gregg County and the Kilgore Labor Market Draw Area.
 
 

Gregg County

Labor Market Draw Area

Land Area

274.1 Square Miles

7,632.5 Square Miles

Density

406.3 Persons per Sq. Mile

77.2 Persons per Sq. Mile

 Source: U.S. Census, Land Area, Population and Density for State and Counties, Texas County Population Forecasts.

 

Labor Force

Month 2009
Labor force
Employment
Unemployment
Rate
January
392,978
366,812
26,166
6.7
February
394,186
368,267
25,919
6.6
March
396,936
370,580
26,356
6.6
April
400,384
374,393
25,991
6.5
May
402,299
373,727
28,572
7.1
June
408,781
375,620
33,161
8.1
July
409,035
374,380
34,655
8.5
August
406,362
372,939
33,423
8.2
September
406,224
371,986
34,238
8.4
October
405,737
372,216
33,521
8.3
November
407,347
374,553
32,794
8.1

Employers

 

Company Name Category Employment
Halliburton Services Oilfield Services 731
Kilgore Independent School District Primary & Secondary Public Education 606
General Dynamics SATCOM                                             Satellite Communication Equipment 499
Kilgore College Higher Education Institute 363
Region VII Education Service Center Regional Public Education Service Provider 290
Martin Midstream Partners, LP Mkt. & Transporting of Petroleum/Chemicals 241
Exterran                   Compression Services         197
Closure Systems International, Inc. Plastic Containers 167
Pak-Sher Company Plastic Bags 160
Orgill, Inc. Warehouse Distribution 157
City of Kilgore Municipal Government 155
BJ Services Oilfield Services 155
Skeeter Products, Inc. Recreational 153
Weatherford International Oil & Gas Services 112
Triumph Group, Inc. Machined Aircraft Parts, Misc. Trans. Equip. 110
Baker Petrolite Oil & Gas Services 98
Allied Waste Services Solid Waste Management 92
Cudd Pressure Control Oilfield Services 85
Frank's Casing Crew & Rental Tools, Inc. Oilfield Services 83
Ana-Lab Corp. Analytical Services 68

 

Economic Incentives

The mission of the Kilgore Economic Development Corporation (KEDC) is to maintain and increase the tax base of the city of Kilgore, Texas, and the number of permanent jobs for Kilgore citizens.
 
The KEDC Board of Directors oversees the use of local economic development funds. The members will work with interested parties on the use of these funds as an incentive for locating or expanding in Kilgore, Texas. 

Any proposal from KEDC is contingent upon the company qualifying for assistance under KEDC’s guidelines for credit worthiness. It is understood that the company must provide KEDC and its credit advisors all of the necessary information to make this determination.

Application for Incentives
(PDF file) 

 

Taxation Incentives

Tax abatement on real and personal property improvements may be granted by all taxing entities except Kilgore Independent School District.  The company must meet requirements associated with the value of capital improvements and either job creation or payroll increases maintained throughout the term of the agreement.  The City of Kilgore will create a reinvestment zone and adopt a tax abatement agreement with companies meeting the following:

Schedule I

 

Tax Abatement Schedule I - Qualifications and Sliding Scale Rate

Capital Improvements

Full-Time Job Creation

Payroll Increase

$500,000

and

25 or More

or

$400,000 Annually

$1,000,000

and

5 or More

or

$80,000 Annually



ABATEMENT AMOUNT

Year

Percentage

1, 2, & 3

100%   

4

75%   

5

50%   

6

25%   

7

0%   

Schedule II

 

Tax Abatement Schedule II - Qualifications and Sliding Scale Rate

Capital Improvements

Full-Time Job Creation

Payroll Increase

$500,000

and

5 - 24

or

$200,000 Annually



ABATEMENT AMOUNT

Year

Percentage

1, 2, & 3

50.0%

4

37.5%

5

25.0%

6

12.5%

7

0%

For extraordinary projects with significant investment and job creation, the taxing entities will consider tax abatements up to 100% for a period of 10 years.


TX Enterprise Zone


Texas Enterprise Zone Program   The Texas Enterprise Zone Program (EZP) is a tax incentive program created to help companies expnd their business in Texas.  It is an economic development tool for local communities to partner with the State of Texas to promote job creation and capital investment in economically distressed areas of the state.  Over the past six years, The Texas EZP has helped create and retain more than 100,000 jobs and generate $15.8 billion in capital investment. 
 
How does it work?
The EZP is performance based and allows qualified businesses to receive a refund of state sales and use taxes, ranging from $2,5000 - $7,500 per job created and/or obtained during a five year designation period, up to a maximum of $1.2.5 - $3.75 million.  The level and amount of refund is related to the capital investment and jobs at the qualified business site.
 
How does a company qualify?
Communities may nominate a company as an Enterprise Project to be eligible to participate in the EZP, for a designation period up to five years, non-inclusive of a 90-day window prior to the application deadline.  Employment and capital investment commitments must be incurred and met within this timeframe.  Per state biennium, communities with a population of less than 250,000 may nominate up to six projects.

What are the requirements?
Projects may be physically located inside or outside of an enterprise zone.  In a zone, a company commits that 25% of their new employees will meet economically disadvantaged or enterprise zone residency requisites.  Outside a zone, a company commits that 35% of their new employees will meet economically disadvantaged or enterprise zone residency requisites. 
 
Who should I contact?
Companies interested in the EZP should contact Kilgore Economic Development Corporation at 903.983.3522 or



Level of Capital Investment
Maximum number of jobs allocated
Maximum potential refund
Maximum refund per job allocation
$40,000 to $399,999
10
$25,000
$2,500
$400,000 to $999,999
25
$62,000
$2,500
$1,000,000 to $4,999,999
125
$312,500
$2,500
$5,000,000 to $149,999,999
500
$1,250,000
$2,500
Double Jumbo Project $150,000,000 to $249,999,999
500
$2,500,000
$5,000
Triple Jumbo Project $250,000,000 or more
500
$3,750,000
$7,500

 

Property Tax 9.105

Property Tax Rule 9.105  The Texas Comptroller of Public Accounts offers a refund of franchise and sales/use taxes paid by companies owning certain abated property.  A company who meets the following three conditions may apply for a refund:

  • Paid property taxes to a school district on property located in a reinvetment zone. 
  • Is exempt in whole or in part from property tax imposed by a city or county under a tax abatement agreement.
  • Is not in a tax abatement agreement with a school district.

Tx Economic Development Act (HB1200)

Texas Economic Development Act (HB 1200)  This act provides relief from school district property taxes for companies making large capital investments of $20 million to $100 million or greater.  The appraised value of qualifying capital investments is capped based on a sliding scaled tied to the total property wealth of the school district where the investment is located.  The investment amount is determined over a 2-year period.   In general, a school district may abate 100% of the appraised value over the applicable cap of improvements and tangible personal property used in manufacturing for up to 8 years, beginning in the third year of investment.  The company will pay taxes based on the full-appraised value during the first two years but is entitled to a refund of any amounts paid during that period on the value in excess of the applicable cap.  In addition the company must create at least 25 new permanent jobs, pay at least 80% of a group health benefit plan for its employees, and pay at least 100% of the county average weekly wage.

Foreign Trade Sub-Zone

The U.S. Department of Commerce recently approved the modification of Gregg County’s Foreign Trade Zone to provide a new benefit for businesses. The new designation, the Alternate Site Designation, is the first of its kind in the nation and will allow companies located within Gregg County to secure Foreign Trade Zone status for warehousing and distribution operation within approximately 30 days, faster than the usual timeframe. Manufacturing companies benefit from the streamlined procedures as well. 

The East Texas Regional Airport Foreign Trade Zone is located 8 miles from Kilgore.  Any foreign and domestic merchandise, unless prohibited by law, may be brought into a foreign trade zone without being subject to the custom laws of the U.S. governing the entry of goods or the payment of duty. 

Freeport Tax Exemption

Freeport Tax Exemption   This is an exemption for property taxes paid on inventories if those inventories qualify as “Freeport Goods”. Freeport property is defined as goods, wares, merchandise, and other tangible personal property acquired in Texas or brought into Texas and held here 175 days or less before being shipped out of the state.  The property must be in the state for assembling, storing, manufacturing, repair, maintenance, processing, or fabricating purposes.
Freeport Tax Exemption is granted by three of the four taxing entities in Kilgore: the City of Kilgore, Kilgore Independent School District and Kilgore College. This represents 88% of the property tax imposed on inventory values in Kilgore.  The other taxing entity, Gregg County, which represents approximately 12% of the local ad valorem taxes, does not grant the Freeport Tax Exemption.

Pollution Control Equipment Exemptions

Exemption for Pollution Control Equipment   A company that invests in pollution control equipment that will meet or exceed federal, state, or local environmental laws, rules, or regulations may apply for a positive use determination from the Texas Natural Resource Conservation Commission.  This determination will exempt the property from ad valorem taxes.

Utility Tax Exemptions

Natural Gas and Electricity Sales and Use Tax Exemption  Companies are exempt from paying state sales and use tax on electricity and natural gas used in manufacturing, processing, or fabricating tangible personal property.  The company must complete a predominate use study showing that at least 50% of the electricity or natural gas consumed by the business directly causes a physical change to a product.

MM&E Tax Exemptions

Manufacturing Machinery and Equipment Sales and Use Tax Exemption   Leased or purchased machinery, equipment, replacement parts, and accessories that have a useful life of more than six months, and that are used or consumed in the manufacturing, processing, fabricating, or repairing of tangible personal property for ultimate sale, are exempt from state and local sales and use tax.  Texas businesses are exempt from paying state sales and use tax on labor for constructing new facilities.  Machinery exclusively used in processing agricultural products by the original producer is also exempt.

Clean Room Exemptions

Clean Rooms Exemption  Clean rooms used in the production of semiconductor components are exempt as manufacturing equipment.

Financing Incentives

The following information is provided in order to give an accurate account of available Financing Incentives for the City of Kilgore.  Additional more detailed information is available by contacting the Kilgore Economic Development Corporation.

Texas Enterprise Fund

The 78th Legislature created the Texas Enterprise Fund, giving the governor the ability to respond quickly to opportunities to bring companies and jobs to Texas.  The fund is intended to attract high-impact facilities that have the opportunity to provide high returns for taxpayer investment.  The Toyota assembly plant in San Antonio and a state-of-the-art Texas Instruments semiconductor wafer fab project in Richardson are both examples of projects that are eligible to benefit from the Texas Enterprise Fund. 
 
Applications are received throughout the year and TEF awards are made several times annually. For a complete list of awardees, click here.

For more information on the Texas Enterprise Fund, call 512-936-0101 or click here.

Emerging Technology Program

This program is designed to help Texas create jobs and grow the economy over the long-term by expediting the development and commercialization of new technologies and attracting and creating jobs in technology fields.  
 
ETF grants are awarded in the following three areas:
  • Research Superiority Acquisition -- funds for Texas higher education institutions to recruit the best research talent in the world.
  • Commercialization Awards -- funds to help companies take ideas from concept to development to ready for the marketplace.
  • Matching Awards -- funds create public-private partnerships which leverage the unique strengths of universities, federal government grant programs, and industry.

The first step is to contact the Regional Center of Innovation and Commercialization (RCIC) in your area. Click here for more information. There are seven RCICs and one Texas Life Science Center to serve stakeholders throughout the state.

RCICs receive applications for ETF awards each calendar quarter from companies within their regions and help guide companies through the application process. For detailed information about applying for ETF grants, click here.
 

ED Sales Tax Incentives

The Kilgore Economic Development Corporation (KEDC) was created by the voters in 1990 to use the revenue generated by a ½ cent sales tax for economic development to encourage the creation and retention of jobs and capital investment in Kilgore. The KEDC Board of Directors works with interested parties for the use of these funds as an incentive to locate or expand in Kilgore.  The amount and type of the incentive depends upon the economic impact of the project and the specific needs of the company.  Incentive funds can be applied to costs associated with land or facility acquisition, facility construction, remodeling, infrastructure, training programs, etc., according to the terms of an economic development performance agreement between KEDC and the company. 

Texas Capital Fund

Designed to promote growth in non-entitlement areas, the Texas Capital Fund can be used for businesses creating new full-time jobs, a majority of which benefit low to moderate-income persons.  This program requires an application and competitive rating process which sometimes delays the funding process.  If the timing of the project makes it possible, the TCF programs available to Kilgore are:

TCF Infrastructure Grant Program

 Funds may be used for construction and/or improvements of water or wastewater facilities, public road construction, natural gas line services, rail spurs, and electric power services.  Minimum and maximum awards are $50,000 and $750,000 and may not exceed 50% of the total project cost.

TCF Real Estate Development Program

Funds may be used to acquire, construct, or rehabilitate real estate to support a for-profit or a non-profit entity willing to commit to creating or retaining jobs primarily for low or moderate income persons.  Minimum and maximum awards are $50,000 and $750,000 and may not exceed 50% of the total project cost.

Funds may be used for:

*       acquisition of land and/or buildings

*       construction of new buildings and site improvements

*       rehabilitation of buildings and site improvements

Terms 
The minimum award is $50,000 and the maximum is $1,000,000 inclusive of administration costs. Awards of more than $750,000 require a greater level of job creation/retention and matching funds, and are limited to two (2) per year.  The award may not exceed fifty percent (50%) of the total project cost. Required minimum equity injection of the total project cost by the business:

*       ten (10%), if operating for 3+ years

*       thirty-three percent (33%), if operating for less than 3 years

Applicant must not sell/transfer ownership for a minimum of five years.

The business must remit to the applicant a monthly lease payment equal to the award amount divided over a maximum 240 month period.

Applicant may elect to deposit lease payments in a revolving loan fund for use at the local level and receive one award per program year; or return payments to the state for use in a state revolving loan fund, which allows the applicant to be eligible for as many awards per program year as it has eligible projects.

The lease agreement with the business must be for at least three years or until the contract between the applicant and the Texas Department of Agriculture is satisfactorily closed.

Collateral
An applicant may use the real estate as collateral to secure additional funding for the real estate improvements.

 

 

Chapter 380 Incentives

The City may offer a range of incentives designed to promote local economic development.  These incentives are normally negotiated between the company and the City but can include reimbursement of certain expenses. Chapter 380 agreements are often offered in lieu of tax abatement.

Tax Increment Financing

The City can designate a reinvestment zone to provide tax increment financing of project costs for public works or public improvements in the zone. Tax increment bonds or notes may be used to pay project costs. The proceeds from taxes on improvements within the zone are used to pay the debt service on the bonds or notes or for the cost of the project for a designated time as determined by a TIF plan adopted by the taxing entities participating. School districts are prohibited from participating in TIFs. The TIF can be used to finance improvements required by a project in order to locate in the City of Kilgore.

Industrial Revenue Bonds

KEDC may issue tax-exempt bonds to finance land and depreciable property for manufacturing facilities. The maximum bond amount is $10,000,000 for tax-exempt issues, and the maturity of the bonds may extend to the lesser of 40 years or 120 percent of the depreciable life of the assets being financed. Eligible project costs include the acquisition by a business of an existing facility, acquisition of land, construction of new facilities, machinery, tools, equipment, and a limited amount of the bond issuance costs. The bonds are subject to the state’s private activity bond volume cap administered by the Texas Bond Review Board.

NETEDD Revolving Loan Fund

The NETEDD RLF will finance up to 1/3 of total project costs not less than $50,000 or greater than $300,000 depending upon availability of funds. Interest rate is fixed over the life of the loan at prime rate depending on credit worthiness. The term of the loan is determined by the useful life of the assets pledged as collateral, and NETEDD will subordinate to the local lender. Equity injection of 25% is usually required.
 
The Chapman Revolving Loan Fund is a direct loan program for businesses or governmental entities to provide loan funds.  The original funds were from a grant from Housing and Urban Development.  Former U.S. Representative Jim Chapman was the catalyst for obtaining the funds.
 
The Northeast Texas Economic Development District has a revolving loan fund that is managed by ATCOG.  These funds are available for loans in the original sixteen counties of the economic district as direct loans to certain manufacturers and commerical entities.
 
For more information contact Richard M. Powell, Economic Development Manager, at the Ark-Tex Regional Development Company in Texarkana at 903.832.8636 or rpowell@atcog.org.
 
 

 

Chapman Revolving Loan Fund

Chapman Revolving Loan Fund is a loan-guarantee program for projects creating permanent full-time jobs. The program will guarantee not less than $35,000 and not greater than $250,000 or 50% of the total project cost, whichever is less. Generally the interest rate is calculated at CD rate plus 3% amortized for 7 to 15 years depending on the purpose of the loan.

SBA 504 Loan Program

Small Business Administration 504 Loan Program is a direct-lending program providing long-term financing for fixed assets at a fixed rate of interest at or below New York prime rate. Designed to create and retain full-time jobs and to help businesses start-up or expand, the loan usually includes a senior lien from a private-sector lender covering 50% of the project cost and at least 10% equity injection. Generally the business must create or retain one job for every $35,000 provided by the SBA. The maximum loan is $1,000,000 for job creation. Companies located in Kilgore have access to the program through the East Texas Regional Certified Development Company.

SBA 7a Loan Program

Small Business Administration 7(a) Loan Guaranty Program provides guarantees for small businesses unable to secure financing on reasonable terms through normal lending channels. The SBA will guarantee up to 75% of a private-sector loan up to a maximum of $750,000. The rate and term of the loan are set by the private-sector lender.

Economic Development Administration

This program provides grants funded on a competitive basis for public water and wastewater facilities, access roads, rail spurs, or projects consistent with an overall economic development plan that serves industry and commerce.  The application and approval process requires additional time.

TX Capital Access Program

The program is designed to increase the availability of financing for businesses and non-profit organizations that face barriers in accessing capital.  Eligible borrowers can be any small business with less than 500 employees or a non-profit corporation.  The proceeds may be used for working capital or the purchase, construction, or lease of capital assets including land, buildings, and equipment.

Linked Deposit Program

This program encourages lending to qualified businesses which are historically underutilized, child care providers, non-profit corporations and small businesses located in an enterprise zone.  It offers lenders and borrowers a lower cost of capital.  Loan amounts range from $10,000 to $250,000.  Proceeds may be used for working capital, purchase, construction or lease of capital assets, including land, buildings and equipment.

Agricultural Business Programs

The Texas Department of Agriculture offers a variety of financing and guarantee programs to assist eligible businesses or individuals involved in agricultural-related economic development projects. These include:  Texas Agricultural Finance Authority Loan Guaranty Program, Direct Loan Program, Loan Participation Program, Young Farmer Program, Farm & Ranch Finance Program, and Linked Deposit Program.

Industry Development Loan Program

The Texas Industry Development (TID) Loan Program provides capital to Texas communities at favorable market rates. The main objective of TID is to support projects that will stimulate the creation of jobs. TID loans can be used for a variety of purposes including community infrastructure development. TID financing is available for loans above $5,000,000.

TID Program loans are variable rate, low-cost, long-term financing opportunities to cover costs of economic development projects. The term of the loan cannot extend beyond the useful life of the assets, or bond maturity in 2025. Debt service is provided by the issuing authority.
 

The TID program operates within a non-profit corporation under the Development Corporation Act of 1979 (Vernon's Texas Civil Statutes Article 5190.6), Texas Small Business Industrial Development Corporation (TSBIDC). The 67th Legislature in 1981 authorized TSBIDC to issue bonds for economic development projects and is administered by the Office of the Governor.

Product Development Fund

The Texas Product Development Fund provides financing to aid in the development, production and commercialization of new or improved products within the state. Products appropriate for the Fund are inventions, devices, techniques, or processes that have advanced beyond the theoretical stage and are ready for immediate commercial application.

Preference for funding will be given to the state’s defined industry clusters within emerging technology fields including semiconductors; nanotechnology; biotechnology and biomedicine; renewable energy; agriculture and aerospace. Job creation and job retention within Texas will be considered within funding priorities.
 
The Fund is a revolving loan program with capital provided from $25 million in taxable bonds issued in 2005. The Office of the Governor, Texas Economic Development Bank administers the Fund at the direction of the Governor’s appointed nine member board.

Small Business Fund

The Texas Small Business Fund provides financing to foster and stimulate the development of small businesses in Texas. Preference for funding will be given to the state’s defined industry clusters within emerging technology fields including semiconductors; nanotechnology; biotechnology and biomedicine; renewable energy; agriculture and aerospace.

Preference will be given to small businesses that have received financing from the state’s Small Business Development Centers (SBDC) or through the Small Business Innovative Research program (SBIR).
 
The Fund is a revolving loan program with capital provided from $20 million in taxable bonds issued in 2005. The Office of the Governor, Texas Economic Development Bank administers the Fund at the direction of the Governor’s appointed nine member board.

Job Training Incentives

The following information is provided in order to give an accurate account of Job Training Incentives for  the City of Kilgore.  Additional more detailed information is available by contacting the Kilgore Economic Development Corporation.

Skills Development Fund

This State of Texas program assists community and technical colleges in financing customized job training for local businesses.  The fund will provide training for specific skills for workers who will be hired by the business.  A business that forms partnerships with local community colleges and technical schools or the higher education extension agency may apply through that training institution to the Texas Workforce Commission for funding. Incumbent (existing) worker training does qualify for the program; however, the application is a competitive process and generally projects creating new jobs score higher.

Kilgore College Workforce Development

 The Workforce Development Department at Kilgore College works with business and industry to design customized training to match the needs of a specific company.  The college will work with business to access any training funds available for the project (such as Skills Development Fund), write the application for those funds and handle the administrative requirements of the grant. The college can provide pre-employment testing and screening. KC also offers certificate and degree programs in a variety of fields and technical areas.  Every program created by Kilgore College Workforce Development is a unique customized response to each company’s specific needs.  KC Workforce Development’s customer-directed, industry-driven approach provides a business with affordable solutions for skills training.  For more information, contact Martha Woodruff, Director of Workforce Development, at 903-983-8287.

Local Workforce Development

Local boards oversee training funds for specific regions and have some programs available for training certain qualified populations.

Texas State Technical College

Located 35 miles from Kilgore, TSTC works with industry in a number of ways, including the following:

  • Provide customized training programs, incorporating the employers’ goals and objectives
  • Offer technical training through certificate and degree programs
  • Handle administrative aspects of the Skills Development Fund
  • Contact:  903-935-1010, Ext. 2250

Support Services

Available Support Services
 
  • Customized Worker Training
  • Manufacturing Assistance (ISO 9000, Technology Applications)
  • Altternative Fuels Service
  • Recycling Center

Economic Development Sales Tax Incentives

The Kilgore Economic Development Corporation funds can be applied to costs associated with training needs according to the terms of a negotiated economic development agreement between KEDC and the company and according to the requirements in state law in lieu of or in addition to other KEDC grants.

Loan Incentives

The Texas Economic Development Bank provides flexible funding and oversight of finance and tax incentive programs targeting three key audiences: Texas businesses, Texas communities and Texas lending institutions. The Bank's task is to provide globally competitive, cost effective state incentives to expand businesses operating in the state and to businesses relocating to Texas.

Industrial Revenue Bonds

KEDC may issue tax-exempt bonds to finance land and depreciable property for manufacturing facilities. The maximum bond amount is $10,000,000 for tax-exempt issues, and the maturity of the bonds may extend to the lesser of 40 years or 120 percent of the depreciable life of the assets being financed. Eligible project costs include the acquisition by a business of an existing facility, acquisition of land, construction of new facilities, machinery, tools, equipment, and a limited amount of the bond issuance costs. The bonds are subject to the state’s private activity bond volume cap administered by the Texas Bond Review Board.

NETEDD Revolving Loan Fund

The NETEDD RLF will finance up to 1/3 of total project costs not less than $50,000 or greater than $300,000 depending upon availability of funds. Interest rate is fixed over the life of the loan at prime rate depending on credit worthiness. The term of the loan is determined by the useful life of the assets pledged as collateral, and NETEDD will subordinate to the local lender. Equity injection of 25% is usually required.
 
The Chapman Revolving Loan Fund is a direct loan program for businesses or governmental entities to provide loan funds.  The original funds were from a grant from Housing and Urban Development.  Former U.S. Representative Jim Chapman was the catalyst for obtaining the funds.
 
The Northeast Texas Economic Development District has a revolving loan fund that is managed by ATCOG.  These funds are available for loans in the original sixteen counties of the economic district as direct loans to certain manufacturers and commerical entities.
 
For more information contact Richard M. Powell, Economic Development Manager, at the Ark-Tex Regional Development Company in Texarkana at 903.832.8636 or rpowell@atcog.org.
 
 

 

SBA 504 Loan Program

Small Business Administration 504 Loan Program is a direct-lending program providing long-term financing for fixed assets at a fixed rate of interest at or below New York prime rate. Designed to create and retain full-time jobs and to help businesses start-up or expand, the loan usually includes a senior lien from a private-sector lender covering 50% of the project cost and at least 10% equity injection. Generally the business must create or retain one job for every $35,000 provided by the SBA. The maximum loan is $1,000,000 for job creation. Companies located in Kilgore have access to the program through the East Texas Regional Certified Development Company.

SBA 7a Loan Program

Small Business Administration 7(a) Loan Guaranty Program provides guarantees for small businesses unable to secure financing on reasonable terms through normal lending channels. The SBA will guarantee up to 75% of a private-sector loan up to a maximum of $750,000. The rate and term of the loan are set by the private-sector lender.

TX Capital Access Program

The program is designed to increase the availability of financing for businesses and non-profit organizations that face barriers in accessing capital.  Eligible borrowers can be any small business with less than 500 employees or a non-profit corporation.  The proceeds may be used for working capital or the purchase, construction, or lease of capital assets including land, buildings, and equipment.

Linked Deposit Program

This program encourages lending to qualified businesses which are historically underutilized, child care providers, non-profit corporations and small businesses located in an enterprise zone.  It offers lenders and borrowers a lower cost of capital.  Loan amounts range from $10,000 to $250,000.  Proceeds may be used for working capital, purchase, construction or lease of capital assets, including land, buildings and equipment.

Agricultural Business Programs

The Texas Department of Agriculture offers a variety of financing and guarantee programs to assist eligible businesses or individuals involved in agricultural-related economic development projects. These include:  Texas Agricultural Finance Authority Loan Guaranty Program, Direct Loan Program, Loan Participation Program, Young Farmer Program, Farm & Ranch Finance Program, and Linked Deposit Program.

Industry Development Loan Program

The Texas Industry Development (TID) Loan Program provides capital to Texas communities at favorable market rates. The main objective of TID is to support projects that will stimulate the creation of jobs. TID loans can be used for a variety of purposes including community infrastructure development. TID financing is available for loans above $5,000,000.

TID Program loans are variable rate, low-cost, long-term financing opportunities to cover costs of economic development projects. The term of the loan cannot extend beyond the useful life of the assets, or bond maturity in 2025. Debt service is provided by the issuing authority.
 

The TID program operates within a non-profit corporation under the Development Corporation Act of 1979 (Vernon's Texas Civil Statutes Article 5190.6), Texas Small Business Industrial Development Corporation (TSBIDC). The 67th Legislature in 1981 authorized TSBIDC to issue bonds for economic development projects and is administered by the Office of the Governor.

Leverage Fund

Introduced in 1992, the Texas Leverage Fund (TLF) provides an additional source of financing to communities that have adopted an economic development sales tax. Communities may leverage future sales tax revenues to support job retention or creation.

Terms

Available for interim, long-term or gap financing, TLF loans provide flexible financing terms to match the unique needs of communities, with maturities of up to 15 years available. Generally, EDCs are eligible to borrow four to five times annual sales tax revenues, up to $5 million. TLF loans are low-cost, providing capital to communities at floating Prime Rate, as published in the Wall Street Journal.

Future sales tax revenues serve as collateral for loan repayment with required debt service coverage ratios specified in the Texas Leverage Fund Program Guidelines. Pledged tax collections not needed for actual debt service are available for other projects.
 

Texas Product/Business Fund

Capital loans for product commercialization and businesses
The Texas Product/Business Fund provides asset back financing to companies currently doing business in the state.  Financing is done in the form of direct asset based loans with a variable interest rate tied to London Interbank Offered Rate (LIBOR).  Loans can be amortized up to the life of the asset.  Texas companies or out-of-state/international companies doing business in the state are eligible to apply.  Applicants can submit a free brief pre-assessment in order to check eligibility.

Attributes of the Texas Product Fund:
• Asset Based Loans
• Competitive Loan-To-Value (LTV)
• Positive EBITDA not required
• Secure Loans with Property Plant & Equipment (PP&E)
 

The Office of the Governor, Texas Economic Development Bank administers the Texas Product Fund at the direction of the Governor’s appointed nine member board.  Preference for funding is given to the states’ defined industry clusters including, but not limited to: nanotechnology, biotechnology, biomedicine, renewable-energy, agriculture, and aerospace.  Job creation and retention within Texas will be considered within funding priorities.  For more information e-mail TexasProductFund@governor.state.tx.us
 

 

Taxes

 
 
Overview of the Texas Tax System. . .

Local Property Tax Rates

 

  Tax Rate/Per $100**
Taxing Entity Current year 2009-2010
City of Kilgore $0.392371
Kilgore ISD $1.1092
Kilgore College $0.1540
Gregg County $0.2675
TOTAL: $1.923071

** All Property is Assessed @ 100% Valuation

Local Sales Tax Rates

 

Sales Tax
City County State
1.50% 0.50% 6.25%

Training

Texas coordinates employee-training programs through the community college system and the East Texas Workforce Board.

The Kilgore community receives services through Kilgore College, Texas State Technical College (TSTC) and East Texas Workforce Board. Kilgore College and TSTC tailor training curriculum to match the needs of each specific company in addition to standard certificate programs/courses.

The state-funded Skills Development Fund job-training program is available to new or to expanding existing industry through local community colleges.  The college will work with companies to prepare the application for state training funds.

Pre-employment testing and screening are also available.

Kilgore’s reputation for exceptional training serves traditional as well as high technology industries.

Transportation

The following information is provided in order to give an accurate account of the transportation infrastructure in and around Kilgore, Texas.  Additional more detailed information is available by contacting the Kilgore Economic Development Corporation.

Highway Access

Miles to
Highway
  2
Interstate 20
<1
US Highway 259
  2
TX Highway 31
<5
TX Highway 42
<5
TX Highway 135
 

Motor Freight Carriers

 

Local Motor Freight Carriers
38 Serving this area.

Air Transportation

Kilgore Area Air Transportation
 
Air Transportation
Nearest Airport Miles from Airport
East Texas Regional 8
Tyler Pounds Field Regional 24
Shreveport Regional 55
Dallas Fort Worth 120
 

The East Texas Regional Airport is 8 miles from Kilgore and provides direct flights to the Dallas/Ft. Worth Airport via their regional partner, American Eagle.  Annual passenger traffic is 25,000 with both small package and large cargo services available through the airline.

Pounds Field Regional Airport is in Tyler, Texas, 24 miles from Kilgore. Annual passenger service is  75,000 with both small package and large cargo services available through the airline.

Shreveport Regional, the 2009 Louisiana Airport of the Year, is less than 60 minutes from Kilgore and is the largest airport in the Ark-La-Tex, with scheduled non-stop airline service to seven destinations and cargo service from FedEx, United Parcel Service and several smaller carriers. It has two runways, the longest of which is 8,351 feet and is home to 62 based aircraft. Annual passenger service is 300,000.

 

 

Port Service

Kilgore Area Port Service
 
Port Service
Nearest Port Miles from Port
Port of Shreveport 75
Port of Houston 205
Port of Port Arthur 207
 

Rail Service

Rail service in the Kilgore, Texas. . .

  • Union Pacific - 35 Trains Daily
  • Burlington Northern Santa Fe - 5  Trains Daily
  • Amtrack - 2 Trains Daily

Location of Major Cities

Location of Major Cities in relation to Kilgore, Texas
 
Location from Major Cities
Dallas 120 Miles
Shreveport 55 Miles
 

Transportation Summary

 
 
Transportation Summary
Motor Freight Companies 6 Local Terminals 32 within 30 mile radius
Railroad Union Pacific – 7 Stops Santa Fe & AMTRAK – 10 miles
Bus Lines Greyhound Lines, Inc. 11 stops per 24-hour period
Port Facilities Shreveport, LA
(60 miles)
Houston, TX (200 miles)
Air Cargo Gregg County
(8 miles)
American Eagle (7 flights daily)
Airports
East Texas Regional Airport
(4 flights daily to DFW)
Tyler Pounds Field (45 miles)
Shreveport, LA (55 miles)
Dallas/Ft Worth (120 miles)
Overnight Package Services Federal Express, UPS, DHL, Airborne, Purolator Couriers  
Highways IH 20, US 259 State Highways 31, 42, 135
 

Utility & Services

Content about Utilities and Services.

American Electric Power - SWEPCO

 

Industrial Average Rate (12 months ending 12/31/2007): 5.17cents per KWH

Annualized Rates in effect January 1, 2008
Class of Service: Industrial

Demand (kW) 75 1,000 50,000
Load Factor: (kWh)      
Low Load Factor 15,000 200,000 15,000,000
Factor % 28% 28% 48%
Rate $966 $12,887 $776,127
Mid Load Factor 30,000 400,000 25,000,000
Factor % 56% 56% 69%
Rate $1,540 $20,537 $1,134,801
High Load Factor 50,000 650,000 32,500,000
Factor % 93% 91% 91%
Rate $2,305 $30,100 $1,403,807
Source - American Electric Power


Water - City of Kilgore

 

City of Kilgore Water Department
Rated Capacity Avg. Daily Demand Peak Demand Storage Capacity Gallons: Pressure in Mains
8.2 mgd 2.5 mgd 6.1 mgd Ground: 1,100,000
Elevated: 4,900,000
Min. 35 PSI
Max. 85 PSI
 
Water Consumption Cost as of 1/2007
Cost per 1000 gallons $3.20
Water Connection Fee-New Account $50.00 Non-Refundable
   
2008 Water Quality Report  
Source - City of Kilgore Water Department

 

Natural Gas

 

Natural Gas
Local Supplier CenterPoint Energy
Option

Large Capacity Users qualify for negotiated pricing based
on volumetric and load factor designed rate schedules.

 

Sewer Treatment

 

Sewer Treatment
Type of Service Secondary
Rated Capacity 3 mgd
Avg. Daily Demand 1.9 mgd
Peak Demand 4.2 mgd
Cost per 1000 gallons $3.70
Sewer Connection Fee 4” = $350.00 6” = $450.00
Provider: City of Kilgore

 

Solid Waste

Solid waste disposal in the City of Kilgore is currently handled by Olympic Waste Systems.

Telephone / Telecommunications

Telephone/Telecommunications

Service

Availability

T – 1 Line

Available

ISDN Lines

Available

Fiber Optic

Providers:

 


Verizon
(903) 983-4926


 

KMC Telecom, Ben Brewer
(903) 248-8226

McLeod USA, Inc.,
T. J. Mullenix
(903)364-9146

POPs for MCI, AT&T, and Sprint

11 miles from Kilgore in Longview, TX


Broadband

 

Broadband
Service Availability
   
Cable Providers: Cablelynx
Wireless Providers: ESA Technologies

 

A Skilled Workforce

The area workforce is heavily concentrated in the manufacturing, services, and trade sectors. Manufacturing and the oil and gas sector employment accounts for 20% of all jobs in the labor force. A highly skilled labor force contributes to this area’s high manufacturing base with more than 200 manufacturers in a 40-mile radius. Of the major manufacturing companies in this area, 31% are involved in machinery manufacturing and 24% - fabricated metal products manufacturing.


*Represented by ten or more companies in area

An Educated Workforce

The Kilgore area has an excellent educational system producing quality talent every year. High schools in the Kilgore area Labor Market graduate 5,000 students annually. Approximately 25% of area graduates move directly into the job market upon graduation. The remaining, often attend one of the many area institutions of higher learning. Fifteen colleges and universities are located within the area and have an average annual enrollment of 40,000--providing an additional resource of qualified applicants.


Educational Attainment
                  Percent Change
  1990 Census   2000 Census   2008 Estimate   2013 Projection   1990 to 2000 2008 to 2013
Age 25+ Population 283,481   320,216   358,070   382,221   13.0% 6.7%
  Grade K - 8 29,924 10.6% 19,452 6.1% 26,043 7.3% 26,852 7.0% -35.0% 3.1%
  Grade 9 - 12 49,265 17.4% 46,878 14.6% 40,844 11.4% 37,647 9.9% -4.8% -7.8%
  High School Graduate 78,222 27.6% 93,373 29.2% 112,218 31.3% 124,121 32.5% 19.4% 10.6%
  Some College, No Degree 62,249 22.0% 77,660 24.3% 84,237 23.5% 87,810 23.0% 24.8% 4.2%
  Associates Degree 19,722 7.0% 20,372 6.4% 24,920 7.0% 27,712 7.3% 3.3% 11.2%
  Bachelor's Degree 29,076 10.3% 38,709 12.1% 48,189 13.5% 54,686 14.3% 33.1% 13.5%
  Graduate Degree 14,995 5.3% 18,897 5.9% 21,618 6.0% 23,393 6.1% 26.0% 8.2%
  No Schooling Completed     4,875 1.5%            
 
 

A Right to Work State

Because Texas is a right-to-work state, employees cannot be forced to join or not to join, nor pay dues to a labor union as a requirement for employment. Texas, one of 21 right-to-work states, has low union membership compared to its neighbors. With less than 2% union membership, Kilgore falls far below the state average. Compared with its neighbors, Texas has a fairly low union representation rate of 6.7%. According to the Department of Labor, Arkansas has a rate of 7.7%, Louisiana - 10.1%, and Oklahoma = 9.4%.

East Texas Workforce Center

The East Texas Workforce Center (ETWC) functions as a one-stop shop designed to meet the needs of its clients. Employers are able to benefit from the ETWC in the following ways:

East Texas Workforce Center Employer Services

  • Online job postings- locally, regionally, nation wide
  • Pre-screening of prospective employees
  • On-site facilities for recruiting, interviewing, hiring
  • On demand classes for training mid-level managers and supervisors
  • Current labor market information
  • Child care services
  • Unemployment Insurance Information
  • Job training programs
  • Alien labor certification program
  • Rapid response services
  • Unemployment Insurance Tax assistance
  • Resolution assistance with labor law and personnel issues
  • Computer training for employer staff
  • Typing test
  • Monthly job fairs
  • Work Opportunity Tax Credit (WOTC) assistance
  • Underutilized labor force from Welfare-to-work program
  • Connections to other agencies for assistance