Covington, Kentucky, November 20, 2025
Covington’s Small Business Program has achieved unprecedented success by supporting 177 businesses and facilitating $12.4 million in investments. Public and private partnerships have driven a remarkable investment ratio, showcasing the city’s commitment to fostering a thriving entrepreneurial ecosystem. The program’s various initiatives have led to exceptional survival rates for small businesses, significantly outperforming national averages. As Covington looks ahead, it aims to enhance support for small enterprises and maintain its reputation as a prime destination for entrepreneurs.
Covington, Kentucky’s Small Business Program Achieves Record Success in 2025
Covington’s Economic Development Department Reports Outstanding Results from Small Business Program
In a remarkable achievement for local entrepreneurs, Covington, Kentucky’s Economic Development Department has announced that its Small Business Program has reached record heights in 2025. Supporting 177 small businesses, the program facilitated a staggering $12.4 million in combined public and private investments. Notably, private capital investment drastically outpaced city contributions, yielding a remarkable ratio of $11.20 invested for every dollar provided by the city. This success is a testament to Covington’s ability to cultivate a thriving small business landscape, boasting survival rates that eclipse national averages. For example, the first-year failure rate for small businesses in Covington is just 9%, compared to 20% nationally; five-year failure rates are similarly impressive at 12% versus 50% nationally.
This notable performance results from the sound structure of the city’s initiatives designed to support small business growth while embracing a philosophy that encourages entrepreneurial spirit and innovation. By minimizing red tape and providing substantial support to startups and established businesses alike, Covington has carved out a niche as a model city for fostering economic growth.
Key Components of the Small Business Incentive Program
Initiated in 2017, the Small Business Incentive (SBI) Program has been a cornerstone of Covington’s business success. The program offers various grants and incentives to bolster local companies:
- Facade Incentives: Since its inception, the program has provided facade incentives to 92 businesses, with city investments totaling $526,702 and private contributions reaching $4.44 million. These enhancements have transformed numerous underutilized buildings, resulting in an impressive 94.3% attraction rate for formerly vacant structures.
- Rent Subsidies: The SBI Program has also distributed $453,100 in rent subsidies to 78 businesses, leveraging an additional $6.87 million from private sources. This initiative contributed to the creation and retention of 439 jobs, with a cost-effectiveness of just $1,032 per job—a stark contrast to the national average of $50,221.
- Historic Electric Sign Incentives: Launched in 2022, this initiative aims to preserve Covington’s architectural heritage by restoring five vintage signs, with the city investing $37,025 and private investment accounting for $87,214.
Program Enhancements and Community Support
The SBI Program has continually evolved to better address the diverse needs of the business community. Enhancements include:
- Increasing the maximum forgivable loan amounts to $10,000,
- Raising historic sign reimbursement ceilings to $10,000,
- Lowering required private investment matches to 20%,
- Expanding geographic eligibility for all Covington businesses, and
- Streamlining application processes for new startups and entrepreneurs.
Throughout the challenges posed by the COVID-19 pandemic, Covington demonstrated its commitment to supporting small enterprises, swiftly providing $85,052 in rapid rent subsidies to 47 businesses and awarding $479,880 in ARPA-funded grants to help 13 businesses maintain jobs and pivot their operations. Remarkably, every business that received city incentives remained operational during the pandemic’s peak.
Comprehensive Support for Entrepreneurs
Beyond financial incentives, Covington lays out a robust framework of support for entrepreneurs:
- Small Business Development Center (SBDC): Offers free, confidential coaching, affordable workshops, and access to a statewide network of experienced advisors.
- Women-Focused Business Support: Provides city-subsidized rent at the Aviatra Accelerator & Incubator on Pike Street.
- Covington Works (Workforce Development): Assists with internships, apprenticeships, training opportunities, and transportation support.
- Business Guides (English & Spanish): Offers step-by-step tools for establishing or relocating a business.
- Networking Events: City-hosted ribbon-cuttings and networking events provide free publicity and foster connections.
- Collaboration with Esperanza & AACC: Organizes entrepreneur workshops and provides Spanish-language resources.
- Authenti-City Awards: Celebrates local businesses and individuals that contribute to Covington’s unique character.
Looking Ahead
As Covington looks to sustain this momentum, plans are in motion for future enhancements, including small business needs assessments, pop-up retail partnerships, exploring a Net Profits Tax incentive, sponsorship opportunities for events, and increased assistance for co-working spaces like SparkHaus and Aviatra. These initiatives are designed to solidify Covington’s reputation as a burgeoning hub for small businesses.
Conclusion
The data from Covington’s Small Business Program paints a picture of an innovative, resilient business ecosystem that continues to thrive through strategic investment and thoughtful support. With 177 businesses supported, over $12.4 million in total investment, exceptional survival rates, and an impressive record in job creation, Covington stands out as a premier destination for entrepreneurs seeking to start or expand their businesses. The message is clear: in Covington, small businesses not only survive, but they flourish.
Frequently Asked Questions (FAQ)
What is the Small Business Incentive (SBI) Program in Covington?
The SBI Program, launched in 2017, is designed to support and sustain small businesses in Covington through various incentives, including facade improvements, rent subsidies, and historic electric sign restorations. It has been instrumental in fostering a thriving small business ecosystem in the city.
How has the SBI Program impacted small business survival rates in Covington?
Businesses receiving city incentives in Covington have significantly higher survival rates compared to national averages. First-year failure rates are 9% in Covington, compared to 20% nationally, and five-year failure rates are 12% in Covington, compared to 50% nationally.
What additional support does Covington offer to entrepreneurs beyond financial incentives?
Covington provides a comprehensive network of support for entrepreneurs, including free coaching, workshops, SBA loan support, women-focused business support, workforce development programs, business guides, networking events, and partnerships with organizations like Esperanza & AACC.
What are some recent enhancements to the SBI Program?
Recent enhancements to the SBI Program include increasing forgivable loan maximums to $10,000, raising historic sign reimbursements to $10,000, lowering private match requirements to 20%, expanding geographic eligibility citywide, requiring historic consultation for facade projects, and simplifying forms for startups and entrepreneurs.
How did Covington support small businesses during the COVID-19 pandemic?
During the COVID-19 pandemic, Covington provided $85,052 in rapid rent subsidies for 47 businesses and $479,880 in ARPA-funded grants to help 13 businesses protect jobs and pivot operations. Remarkably, not a single Covington business that received city incentives closed during the peak of the pandemic.
Key Features of Covington’s Small Business Success in 2025
| Feature | Details |
|---|---|
| Total Businesses Supported | 177 |
| Total Investment | $12.4 million |
| Facade Incentives | 92 businesses, $526,702 city investment, $4.44 million private investment |
| Rent Subsidies | 78 businesses, $453,100 city subsidies, $6.87 million private investment, 439 jobs created or retained |
| Historic Electric Sign Incentives | 5 signs restored, $37,025 city investment, $87,214 private investment |
| First-Year Failure Rate | 9% in Covington, 20% nationally |
| Five-Year Failure Rate | 12% in Covington, 50% nationally |
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