City of Covington Showcases Record-Breaking Small Business Success in 2025 Program Analysis > City of Covington, KY

COVINGTON, Ky. – 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 don’t just open in Covington—they thrive here. 

Backed by years of data, the analysis highlights Covington’s unique 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 the 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 

Five-Year Failure Rates 

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: 

Rent Subsidies: Supporting Entrepreneurs When It Matters Most 

Since launch, rent subsidies have helped 78 small businesses reduce overhead during critical early years. 

Key results: 

• Incentive cost per job: $1,032, significantly below the national average of $50,221 

Historic Sign Incentives: Lighting Up Covington’s Character 

Introduced in 2022, the Historic Electric Sign Incentive has helped restore five vintage signs, supporting Covington’s architectural heritage and nighttime vibrancy. 

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: 

Every year, City staff refine the program to ensure it remains accessible, impactful, and aligned with business needs. 

A Lifeline During COVID—With Remarkable Results 

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: 

The Ecosystem Behind the Success 

Covington backs its entrepreneurs through a comprehensive network of programs and partnerships: 

Small Business Development Center (SBDC) 

Women-Focused Business Support 

Covington Works (Workforce Development) 

Business Guides (English & Spanish) 

Ribbon-Cuttings & Networking Events 

Esperanza & AACC Partnerships 

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: 

A Growing City That Welcomes Entrepreneurs 

Covington’s data-driven, relationship-centered approach has created one of the strongest small business ecosystems in the country. The results speak for themselves: 

For entrepreneurs looking to launch, relocate, or grow, the message is clear: 

In Covington, small businesses succeed. 

For more information on incentives, business assistance, or upcoming events, visit the City’s Economic Development Department website.