The City of Covington’s Economic Development Department has released its 2025 Small Business Program Analysis, revealing what local, national, and even international observers have increasingly recognized: small businesses thrive in Covington.
Backed by years of data, the analysis highlights Covington’s ability to grow, attract, and retain small businesses at rates that dramatically outperform national norms. The City’s Small Business Incentive (SBI) Program, launched in 2017, continues to serve as a cornerstone of that success.
To date, the program has supported 177 small businesses, strengthened neighborhoods across the city, and generated an unprecedented $12.4 million in combined public–private investment — with private capital far outpacing the City’s contribution at a ratio of $11.20 invested for every $1 of City funding.
Small businesses in Covington outperform nation
According to 2024 U.S. Bureau of Labor Statistics benchmarks, Covington businesses receiving City incentives are far more likely to survive—especially in critical early years:
First-Year Failure Rates
• Covington small businesses: 9%
• U.S. small businesses: 20%
• Covington restaurants: 9%
• U.S. restaurants: 17%
Five-Year Failure Rates
• Covington small businesses: 12%
• U.S. small businesses: 50%
• Covington restaurants: 32%
• U.S. restaurants: 50%
Façade incentives: Transforming neighborhood streetscapes
Since 2017, 92 businesses have received façade incentives, fueling $526,702 in City investments and an astounding $4.44 million in private investment.
The improvements helped bring formerly underutilized buildings back to life:
• 35 incentive projects involved vacant buildings
• 33 of those secured new tenants
• Only 3 remain vacant—a 94.3% attraction rate
Rent subsidies
Since launch, rent subsidies have helped 78 small businesses reduce overhead during critical early years.
Key results:
• $453,100 in City subsidies leveraged $6.87 million in private investment
• 69 businesses still operating; 60 remain in Covington
• 439 jobs created or retained—far more than anticipated
• Incentive cost per job: $1,032, significantly below the national average of $50,221.
Historic sign incentives
Introduced in 2022, the Historic Electric Sign Incentive has helped restore five vintage signs, supporting Covington’s architectural heritage and nighttime vibrancy.
• City investment: $37,025
• Private investment: $87,214
Responsive, evolving programs that meet business needs
Originally budgeted at $75,000 in 2017, the Small Business Incentive Program has grown in scale and impact:
Recent improvements include:
• Increasing forgivable loan maximums to $10,000
• Increasing historic sign reimbursements to $10,000
• Lowering private match requirements to 20%
• Expanding geographic eligibility citywide
• Requiring historic consultation for façade projects
• Simplifying forms for startups and entrepreneurs
Every year, City staff refine the program to ensure it remains accessible, impactful, and aligned with business needs.
A lifeline during COVID
While cities across the country saw staggering losses, Covington acted quickly to support small businesses during the pandemic. As a result:
Not a single Covington business that received City incentives closed during the peak of COVID-19.
Emergency assistance included:
• $85,052 in rapid rent subsidies for 47 businesses
• $479,880 in ARPA-funded grants helping 13 businesses protect jobs and pivot operations
The ecosystem behind the success
Covington backs its entrepreneurs through a comprehensive network of programs and partnerships:
Small Business Development Center (SBDC)
• Free, confidential coaching
• Affordable workshops and SBA loan support
• Statewide network of expert advisors
• Specialized services for underrepresented entrepreneurs
Women-focused business support
• City-subsidized rent at Aviatra Accelerator & Incubator on Pike Street
Covington Works (Workforce development)
• Internships & apprenticeships
• Training, transportation support, and scholarships
Business guides (English and Spanish)
• Award-winning, step-by-step tools for opening or relocating a business
Ribbon-cuttings and networking events
• City-hosted celebrations offering free publicity
Esperanza and AACC Partnerships
• Entrepreneur workshops and Spanish-language business resources
Authenti-City Awards
• Celebrating the people and businesses that give Covington its distinctive character
What’s next for 2025 and beyond
Covington is exploring new enhancements to keep momentum strong, including:
• Small business needs assessments
• Indoor/outdoor pop-up retail partnerships
• Exploration of a Net Profits Tax incentive
• Event sponsorship opportunities
• Expanded location assistance for co-working spaces like SparkHaus and Aviatra
• 177 businesses supported
• $12.4 million in total investment
• Best-in-class survival rates
• Top-tier job creation costs
• Thriving, diverse business districts from downtown to Latonia
For more information on incentives, business assistance, or upcoming events, visit the City’s Economic Development Department website.
City of Covington