Two Opportunity Zone (OZ) related initiatives were announced last week that benefit small businesses operating in OZs as well as homebuyers that may purchase a house in an OZ. These initiatives open up the OZ playing field in a way that will allow for even more people to benefit.
For small businesses operating in an OZ, the U.S. Small Business Administration (SBA) authorized the inclusion of some OZ areas in the HUBZone Program. The HUBZone Program allows small businesses to compete in certain government set-aside contracts. For additional information, you can visit the Small Business Administration’s website here.
The second OZ announcement, from the FHA, offers an incentive to borrowers purchasing or refinancing a home in an OZ. The incentive begins on December 16, 2019, and includes the ability to borrow up to an additional $50k for rehabilitation costs in their total mortgage, which is an increase of $15k. However, this incentive will be limited to the first 15,000 mortgages secured by properties in an OZ each year and expires in 2028. For more information, visit the U.S. Department of Housing and Urban Development website here.