Blue Hen state seeks some BFFs

The state of Delaware, already nationally known for its low business tax structure that draws corporate headquarters from a variety of industries, hopes to grow even more with its latest economic development tactic: The referral.

Delaware officials call it the BFF, for Business Finder's Fee. It kicks in when a company already in the state recruits another company to relocate there. The state will provide a $1,000 tax credit for each new job, to be split 50-50 between the existing and new business.

The program is considered one of the first of its kind in the county, although Delaware officials, in blogs and press releases, say it's not much different than a company that offers a financial reward to an employee who recruits another employee. Of course, the state doesn't point out a significant difference: A company uses its own money to pay a bounty, while the Delaware program is taxpayer funded.

Several Gulf Coast economic development officials say the program is an innovative way of recruiting new businesses. “I give them a lot of kudos for trying it,” says Economic Development Corp. of Sarasota County President and CEO Kathy Baylis.

While nothing that formal, the Sarasota EDC has reached out to non-local companies through firms already in the area. For example, its Snow to Sand program, which targets companies in the Midwest and Northeast, includes local business people who make calls to executives on behalf of the community.