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.
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:
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 are supporting entrepreneurs when it matters to them. Since launch, rent subsidies have helped 78 small businesses reduce overhead during critical early years. Key results:
Introduced in 2022, the Historic Electric Sign Incentive has helped restore five vintage signs, supporting Covington’s architectural heritage and nighttime vibrancy.
Originally budgeted at $75,000 in 2017, the Small Business Incentive Program has grown in scale and impact. Every year, Covington city staff refine the program to ensure it remains accessible, impactful, and aligned with business needs. Recent improvements include:
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:
Covington backs its entrepreneurs through a comprehensive network of programs and partnerships.
The Small Business Development Center (SBDC) provides free, confidential coaching; affordable workshops and SBA loan support; statewide network of expert advisors; and specialized services for underrepresented entrepreneurs.
Additionally there is women-focused business support; city-subsidized rent at Aviatra Accelerator & Incubator on Pike Street; Covington Works (Workforce Development); internships and apprenticeships; training, transportation support, and scholarships; and business guides (English & Spanish)
Award-winning, step-by-step tools for opening or relocating a business
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.
Covington reports record small business success in 2025 – Lane Report
