Covington reports record small business success in 2025 – Lane Report

Report on the Economic and Social Impact of the City of Covington’s Small Business Program

Executive Summary: Aligning Local Growth with Global Goals

The City of Covington’s Economic Development Department’s 2025 Small Business Program Analysis indicates significant success in fostering a resilient and inclusive local economy. The program’s outcomes, particularly through the Small Business Incentive (SBI) Program initiated in 2017, demonstrate a strong alignment with several United Nations Sustainable Development Goals (SDGs). This report analyzes the program’s performance in key areas, including economic growth (SDG 8), urban revitalization (SDG 11), industry and innovation (SDG 9), and the promotion of equality (SDG 5 and SDG 10) through strategic public-private partnerships (SDG 17).

SDG 8: Fostering Decent Work and Sustainable Economic Growth

The program has directly contributed to sustainable economic growth and job creation by significantly outperforming national benchmarks for business survival and investment leverage.

Key Performance Indicators:

• Total Investment: The program has generated $12.4 million in combined public-private investment, with a private-to-public investment ratio of 11.2 to 1.
• Business Survival Rates: Covington businesses receiving incentives show substantially lower failure rates compared to U.S. national averages.
• Job Creation: Rent subsidies have led to the creation or retention of 439 jobs at an incentive cost of $1,032 per job, well below the national average of $50,221.

Comparative Business Failure Rates:

1. First-Year Failure Rate:
   • Covington Small Businesses: 9%
   • U.S. Small Businesses: 20%
2. Five-Year Failure Rate:
   • Covington Small Businesses: 12%
   • U.S. Small Businesses: 50%

SDG 9 & 11: Building Resilient Infrastructure and Sustainable Communities

Incentive programs focused on physical infrastructure have revitalized urban spaces, preserved cultural heritage, and promoted sustainable community development.

Façade Incentive Program:

• Investment: $526,702 in City funds leveraged $4.44 million in private investment.
• Urban Renewal: The program targeted underutilized properties, resulting in a 94.3% tenant attraction rate for previously vacant buildings. 33 of 35 vacant buildings involved in the program secured new tenants.

Historic Electric Sign Incentive:

• Cultural Preservation: A City investment of $37,025, matched by $87,214 in private funds, has restored five vintage signs, contributing to the city’s architectural heritage and vibrancy, a key component of SDG 11.

SDG 5 & 10: Promoting Gender Equality and Reducing Inequalities

Covington has established a comprehensive support ecosystem that actively works to reduce inequalities and empower underrepresented entrepreneurs, directly addressing SDG 5 and SDG 10.

Inclusive Support Mechanisms:

• Targeted Assistance: The city provides specialized services for underrepresented entrepreneurs, including women-focused business support through the Aviatra Accelerator & Incubator.
• Accessible Resources: Business guides are available in both English and Spanish to lower barriers to entry for diverse populations.
• Comprehensive Coaching: The Small Business Development Center (SBDC) offers free coaching, workshops, and loan support to all entrepreneurs.

SDG 17: Strengthening Partnerships for Sustainable Development

The program’s success is founded on strong public-private partnerships and an adaptive, data-driven approach to policy.

Program Evolution and Resilience:

• Continuous Improvement: The program is regularly refined based on business needs, with recent changes including increased loan maximums, lower private match requirements, and simplified application forms.
• Pandemic Response: The city implemented rapid emergency assistance, including $85,052 in rent subsidies and $479,880 in ARPA-funded grants. This proactive support ensured that no business receiving city incentives closed during the peak of the COVID-19 pandemic, demonstrating community resilience.

Conclusion

The City of Covington’s Small Business Program serves as a model for achieving localized economic development in alignment with global sustainability targets. Through strategic investment, inclusive support systems, and robust partnerships, the city has created a thriving ecosystem that promotes decent work (SDG 8), builds sustainable and resilient communities (SDG 9 & 11), and advances equality (SDG 5 & 10). The data confirms that this integrated approach yields superior outcomes in business longevity, job creation, and urban revitalization.

Analysis of Sustainable Development Goals in the Article

1. Which SDGs are addressed or connected to the issues highlighted in the article?

The article on Covington’s economic development and small business programs addresses several Sustainable Development Goals (SDGs). The primary goals identified are:

• SDG 8: Decent Work and Economic Growth: This is the most prominent SDG in the article. The entire focus is on fostering a robust economic environment by supporting small businesses, which leads to job creation, increased investment, and sustainable economic growth. The article details how the city’s programs directly contribute to higher business survival rates and job creation.
• SDG 11: Sustainable Cities and Communities: The article connects economic development to urban renewal. By providing incentives for façade improvements and bringing vacant buildings back into use, the program contributes to making the city more inclusive, safe, resilient, and sustainable. The specific mention of preserving architectural heritage through the Historic Electric Sign Incentive directly aligns with this goal.
• SDG 5: Gender Equality: The article mentions specific support systems for female entrepreneurs, such as “women-focused business support” and a city-subsidized “Aviatra Accelerator & Incubator.” This demonstrates a commitment to empowering women and ensuring their full participation in the local economy, which is a key aspect of SDG 5.

2. What specific targets under those SDGs can be identified based on the article’s content?

Based on the initiatives and outcomes described, the following specific SDG targets can be identified:

1. Target 8.3 (Promote development-oriented policies that support… entrepreneurship, creativity and innovation, and encourage the formalization and growth of micro-, small- and medium-sized enterprises): The City of Covington’s Small Business Incentive (SBI) Program is a direct example of a development-oriented policy. It provides financial incentives like rent subsidies and forgivable loans specifically to encourage the growth and success of small businesses.
2. Target 8.5 (By 2030, achieve full and productive employment and decent work for all women and men): The article highlights that the city’s rent subsidy program alone has led to “439 jobs created or retained.” This directly contributes to the goal of achieving productive employment within the community.
3. Target 11.4 (Strengthen efforts to protect and safeguard the world’s cultural and natural heritage): The “Historic Electric Sign Incentive” is a clear initiative aimed at this target. By helping restore five vintage signs, the program actively supports the protection of “Covington’s architectural heritage.”
4. Target 11.3 (By 2030, enhance inclusive and sustainable urbanization): The façade incentive program, which helped bring 33 formerly vacant buildings back to life with a 94.3% attraction rate, is a direct contribution to sustainable urbanization. It revitalizes urban spaces and strengthens neighborhoods, creating “thriving, diverse business districts.”
5. Target 5.5 (Ensure women’s full and effective participation and equal opportunities… in economic… life): The article’s mention of “women-focused business support” and the “Aviatra Accelerator & Incubator” points to efforts to achieve this target by providing dedicated resources to support female entrepreneurs and ensure they have equal opportunities to succeed in business.

3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?

Yes, the article is data-rich and provides several quantitative and qualitative indicators that can be used to measure progress:

• Indicators for Target 8.3 (Support for SMEs):
  • Number of businesses supported: 177 small businesses have been supported by the program.
  • Business survival rates: The article provides comparative data, such as a 12% five-year failure rate for Covington businesses versus a 50% national average.
  • Leveraged investment: A total of $12.4 million in public-private investment was generated, with a ratio of $11.20 in private capital for every $1 of city funding.
• Indicators for Target 8.5 (Job Creation):
  • Number of jobs created or retained: 439 jobs.
  • Cost-effectiveness of job creation: The incentive cost per job is $1,032, which is drastically lower than the national average of $50,221.
• Indicators for Target 11.4 (Heritage Protection):
  • Number of heritage projects supported: 5 vintage signs restored.
  • Investment in heritage: $37,025 in city investment leveraged $87,214 in private investment for historic signs.
• Indicators for Target 11.3 (Sustainable Urbanization):
  • Rate of building reuse: 33 out of 35 incentive projects involving vacant buildings secured new tenants.
  • Vacancy reduction rate: A 94.3% attraction rate for formerly underutilized buildings.
• Indicators for Target 5.5 (Women’s Economic Participation):
  • Existence of dedicated support programs: The article identifies the presence of “women-focused business support” and the “Aviatra Accelerator & Incubator” as qualitative indicators of the city’s commitment.

4. Summary Table of SDGs, Targets, and Indicators

Source: lanereport.com