By Justin W. Johnson, Director of Communications, Lancaster Chamber jjohnson@lancasterchamber.com & Jeremy R. Young, MURP, Director of Community & Economic Development, Lancaster City Alliance, JYoung@teamlanc.org

A feature piece from our Spring 2025 issue of the Lancaster Thriving Publication

In today’s economic landscape, businesses must continually adapt and innovate to remain competitive and sustainable. For many, access to investment incentives can make the difference between closing doors and building viable growth. Lancaster County businesses have a variety of financial and capital incentives that are available to them including, grants, loans, and tax credits. One of these programs, is the City Revitalization and Improvement Zone (CRIZ) program. In Lancaster City, the CRIZ program has been a game-changer, helping businesses expand, create jobs, and contribute to the city’s economic vitality.

CRIZ is a Pennsylvania-based economic development initiative that redirects certain state and local tax revenues to support designated zones for revitalization and business expansion. Since its inception in 2013, Lancaster’s CRIZ program has returned over $72.9 million in tax revenues while leveraging more than $150 million in private investment. These funds have played a crucial role in transforming underutilized properties, creating jobs, and strengthening the city’s business ecosystem.

One of the most significant advantages of CRIZ funding is its ability to bridge financing gaps for businesses that may struggle to access traditional loans. High real estate costs, aging infrastructure, and rising operational expenses often pose challenges for business owners looking to expand. CRIZ provides financial relief by reinvesting a portion of tax revenues into projects that drive long-term economic impact.

From major developments like the expansion of the Lancaster Marriott at Penn Square to increased support for small business revitalization efforts like, The Exterior Company’s headquarters on Harrisburg Pike. CRIZ is contributing to the economic future of Lancaster. The funding has helped to renovate Ewell Plaza, restore historic buildings, and support businesses through the CRIZ Small Business Financial Assistance (SBFA) program. The latter has been particularly beneficial for small businesses needing flexible funding for improvements, growth, and sustainability.

Several businesses have already leveraged CRIZ funding to bring their visions to life. For example, Issei Noodle utilized CRIZ funds to expand its restaurant space, enhancing its ability to serve more customers while preserving its roots in Lancaster’s vibrant culinary scene.  The Southern Market Lancaster underwent revitalization with support from CRIZ, transforming into a thriving hub for local food vendors and entrepreneurs.

These businesses are not only benefiting from the financial support but are also contributing to job creation, economic diversity, and increased foot traffic in downtown Lancaster.

As Lancaster continues to evolve, CRIZ remains a driving force behind the city’s most ambitious projects. Upcoming investments include:

• The redevelopment of the Lancaster City Welcome Center, which will enhance tourism and business engagement.
  
  
• The establishment of the Thaddeus Stevens & Lydia Hamilton Smith Center for History and Democracy, a landmark project that will celebrate the city’s rich historical legacy while attracting visitors and educational initiatives.
  
  
• Expansion of support for small businesses in CRIZ-designated areas, ensuring that more entrepreneurs can access funding for renovations, technology upgrades, and operational growth.

The future of CRIZ is not just about large-scale developments—it’s about sustaining the local business community and creating a framework for long-term economic resilience.

CRIZ has already proven to be a catalyst for economic revitalization in Lancaster, but its true value lies in how businesses embrace it to fuel their long-term sustainability. By leveraging investment incentives like CRIZ, business owners can navigate financial challenges, expand strategically, and contribute to a thriving local economy.

In a time when many cities struggle to retain businesses, Lancaster’s commitment to innovative economic solutions and community collaboration ensures that local businesses don’t just survive but thrive. As new projects emerge and more businesses tap into the benefits of these investment incentives, Lancaster’s economic future looks stronger than ever.

If you are interested in learning more about CRIZ visit, https://lancastercityalliance.org/criz/

Side Bar:

Other Investment Incentive Programs for Businesses:

Keystone Opportunity Zone

Eliminates specific state and local taxes within specific underdeveloped and underutilized areas. This program seeks to redevelop underutilized properties into business districts and residential areas that present a well-rounded and well-balanced approach to community revitalization.

PA Dept of Community & Economic Development

Educational Improvement Tax Credit

A business firm may receive a tax credit equal to 100% of the first $10,000 contributed to a Pre-Kindergarten Scholarship Organization (United Way of Lancaster County) during the taxable year and may receive a tax credit equal to 90% of any additional amount contributed during the taxable year, up to a maximum of $200,000 of tax credits per taxable year.

United Way of Lancaster County

LERTA

LERTA is for property taxes and applies a tax abatement to the value of the increase in property-tax-assessment due to a property being rehabilitated or new construction. The program provides a 10-year abatement that runs with the property for improved/developed properties.

Through your local borough

Tax Increment Financing (TIF) Program

Assists in the development, redevelopment and revitalization of Brownfield and Greenfield sites. The program provides credit enhancement for TIF projects to improve market access and lower capital costs through the use of guarantees to issuers of bonds or other indebtedness.

City of Lancaster

New Markets Tax Credit (NMTC)

This federal program provides tax credits to banks that provide financing to large scale commercial real estate or mixed use projects located in targeted low income neighborhoods. The program works by providing modest tax credits to investors such as banks and other investment entities who provide loans and equity to large scale real estate projects in targeted neighborhoods.

Community First Fund

SBA 504 Lending

Small Business Administration (SBA) 504 loans are provided through EDC Finance Corporation in conjunction with the United States Small Business Administration to assist growing businesses with long-term, fixed-rate financing for major fixed assets such as land, buildings, and equipment.

EDC Finance

PA Small Business Credit Initiative (SSBCI)
Pennsylvania’s State Small Business Credit Initiative (SSBCI) was established under the American Rescue Plan Act of 2021 (ARPA) in response to the economic effects of the COVID-19 pandemic as a means to help small businesses gain access to capital.

EDC Finance

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