New program encourages companies to set up satellite offices in Philadelphia
PHILADELPHIA – The City of Philadelphia’s Department of Commerce launched a new incentive program, Gateway Philly, to attract suburban companies and other enterprises outside of Philadelphia to set up satellite offices in the city. Gateway Philly aims to encourage companies to enter the city on a trial basis in hopes that the experience will lead to a long-term commitment. Companies can apply online and will be accepted on a first-come, first-served basis.
“There are many benefits to having an office in Philadelphia, and we want to help companies explore the positive effects they would see with a city location,” said Mayor Jim Kenney. “Gateway Philly is designed to give businesses access to the best Philadelphia has to offer, to serve as a gateway to talent, innovation and collaboration.”
To qualify for the program, a company must currently be located outside of the city and without a Philadelphia-based office. They must sign a one-year commitment with a co-working space or other location willing to provide a short-term lease for a minimum of 20 employees. Companies also have the option of hosting their seats at multiple locations in the city. The Department of Commerce will reimburse participating companies $1,000 per seat up to $30,000. Reimbursements will be issued after the one-year lease term is complete.
“The Department of Commerce understands that a long-term location commitment is a big step for any company, and we want to help ease that burden for businesses,” said Commerce Director Harold T. Epps. “We hope Gateway Philly will provide businesses with a low-risk opportunity to evaluate if a long-term commitment is suitable for their company.”
Satellite offices established through the Gateway Philly program will give companies direct access to the talent pipeline being developed in the city by local universities. They will also provide an appealing option for employees who are already residing in Philadelphia and currently doing a reverse commute out to the suburbs. Additionally, locations within the city will allow firms to more easily engage in the collaborative innovation happening throughout Philadelphia.
The City of Philadelphia offers a number of other resources and incentives to businesses willing to locate in the city permanently. Keystone Opportunity Zones (KOZ), Keystone Innovation Zones (KIZ) and Empowerment Zones are all designated areas of the city that come with significant tax benefits. Another incentive program, Jump Start Philly, is designed to attract new businesses and entrepreneurs by exempting them from paying the Business Income and Receipts Tax during the first two years of operations and waiving fees for a variety of licenses and registrations if they meet certain criteria. For additional information, on these and other resources, visit the City’s Business Services website: www.phila.gov/business.