What does a State economic development office do?
A State economic development office, sometimes run by an agency and sometimes by a public-private group, tries to attract and grow business in its State. For a company opening an office, the useful services are usually information, introductions and, in some cases, financial incentives.
Information means labor market data, office and site options, wage levels and local rules. Introductions mean connections to local utilities, universities, city officials and other companies. Incentives are the part people ask about first, and they are the part that varies most between States and programs.
Office names and structures differ, so start by searching the State's name with economic development. The person you want is often a business development or project manager who handles companies from outside the State. Ask for that role directly.
When should you make the first call?
Make the first call when you have a real plan but have not yet signed a lease, hired a person or announced a location. Many incentive programs expect an application before the company commits, and a decision made first can close a door that was open the week before. Ask each program about its rules instead of assuming.
Early does not mean vague. A call with no plan wastes the contact's time and your first impression. You need enough detail to be taken seriously: what the company does, how many people you expect to hire, when, and for which roles.
If you are still choosing among States, talk to several at the same time. Our guide on choosing a first U.S. State covers how to narrow the list before you call.
What should you bring to that first conversation?
Bring a one-page summary that a busy person can read in two minutes. Include what the company sells and to whom, the funding stage, the planned U.S. headcount by year, the roles and rough salary ranges, the office size you expect, and your target start date.
Add the reason this State is on your list. A real reason, such as a customer, a talent pool, a university tie or a partner, is stronger than a general interest. It shows that you did your homework and tells them what they can help with.
Keep numbers honest. If you are not sure that you will hire twenty people, say you expect between a small and a larger number and explain what decides it. Programs may later ask you to report against what you said, so promising too much now creates a problem later.
What should you ask on the first call?
Ask what programs exist for a company of your size and type, and whether each one needs an application before you hire or sign. Ask who decides, how long the process usually takes, and what the company must report afterward.
Ask about foreign ownership directly. Rules on ownership vary by program, and the answer for one program does not carry to another. Our guide on whether State incentives require American owners explains why this question matters.
Also ask about non-money help: site visits, introductions to local employers, workforce training and permit guidance. These are often easier to get than cash and can save real time. Write down names and dates, and send a short thank-you note with the summary attached. That makes follow-up easy.
How do you compare offers from different States?
Put each State's offer in the same simple table: what is offered, what you must do to earn it, when you receive it, and what happens if you miss a target. Then add the cost side: wages, rent, taxes and travel from Israel for each location.
A smaller offer in a State with the right talent and customers can beat a larger offer in a State that does not fit. Incentives should tip a close decision, not drive a poor one. Check that your business reasons come first and the money second.
Be fair with each State. Do not invent a competing offer to pressure anyone. Officials talk to each other, and a reputation for honesty with them is worth more than any one negotiation. Use the facts you have and ask each State what it can do.
What mistakes should you avoid?
The first mistake is announcing a location before any agreement. Some programs will not support a decision the company already made and told the public about. The second is promising headcount you cannot reach. The third is treating the first call as a demand for money instead of a conversation.
A fourth mistake is ignoring local partners. State offices work with regional and city groups, and the best help may sit one level down. Ask who else you should meet.
A fifth is poor record keeping. Keep a simple file of every contact, every promise and every document. Months later, when a program asks what you were told, you will be glad to have it. None of this is hard, but each point is easier to follow at the start than to repair after a deal is half built.
What happens after the first meeting?
Expect follow-up questions and possibly a written proposal or application. Respond quickly and with the detail asked for. A slow answer can slide your project down someone's list.
If a State offers a package, read it with a lawyer and an accountant who know U.S. incentives. Look at definitions, reporting duties and what happens if you hire fewer people or move. Our guide to reading a State incentive offer lists the terms to check.
If no incentive fits, you may still gain a lot from the contact. A friendly State office can open doors for years, and a good first conversation costs only your time and a clear plan.
What questions do founders ask about U.S. grants?
- Do State economic development offices only help large companies?
- No, but their programs often set job or investment minimums. Ask what applies to a company your size, and about non-money help such as introductions.
- Should I hire before I talk to a State office?
- Usually not. Many programs expect you to apply before you hire or sign a lease, so ask each program about its rules first.
- Can I talk to more than one State at once?
- Yes, and it helps you compare fairly. Use the same plan with each State and be honest about where you stand.
- Is the first call a request for incentives?
- It should be a fact-finding talk. Learn what exists, who decides and what the rules are before you ask for anything.