State Loan Programs
Information about these programs is provided by the Ohio Department of Development.
GROWNOW
In partnership with Ohio's state depository banks, The Ohio Treasury offers small business owners a 3% interest rate reduction when they link their loans to creating or retaining jobs in Ohio. Here's how it works. When a business takes out a loan with an eligible bank, GrowNOW can provide a 3% interest rate reduction on the loan. Essentially, the Treasury places a deposit at the business' bank at a reduced rate which allows the bank to pass along the savings to the small business. GrowNOW makes borrowing affordable for Ohio’s small businesses. GrowNOW enables businesses to remain financially stable, hire additional employees or retain their workforce, and become more productive. Visit GrowNOW's website for for information or view the GrowNow brochure on this PDF.
THE 166 REGIONAL LOAN PROGRAM
A State funded loan pool that can fund up to 40% of the total cost of a business expansion project, at fixed, below market interest rates with lower down payment requirements. The 166 Regional Loan Program is primarily for healthy, established small businesses, although start-up projects may be eligible. Approval process consists of an OSDC Board of Directors review with final approval being issued by the Ohio Department of Development. A participating lender usually provides interim financing for the 166 portion of the project. To read more on this loan, visit the PDF.
166 Direct Loan
A loan administered by the Office of Financial Incentives for up to 30% of a project's costs or $1 million (the lesser thereof). The remainder of the financing must be through a combination of private financing and at least 10% owner equity. Allowable costs include the acquisition of machinery and equipment, building or land acquisition, and building construction. The interest rate is not to exceed 2/3 of the prime rate and terms range from 7-10 years for the acquisition of machinery and equipment and 10-15 years for real estate. For more information about this loan, click here.
Ohio Water Development Authority – Local Economic Development Fund: Low-interest financing is available to communities for public water and sanitary sewer improvements. Loans are made directly to local communities on favorable interest rates and terms. Read the loan description on this pdf.
Ohio Enterprise Bond Fund
Ohio Enterprise Bond Fund provides revenue bond financing through this S&P AA- (double A-minus) rated fund, whereby proceeds from the sale of bonds is loaned to companies for fixed rate, long-term capital asset financing. Rates are fixed depending on the type of bond issued, with terms between seven to ten years for equipment and 15 to 20 years for real estate. Up to $10 million in financing is available through this program. Guidelines of this program are available via PDF.
Rural Industrial Park Loan
Rural Industrial Park Loan provides direct loans to rural, distressed industrial parks. The Rural Industrial Park Loan program was created to local communities and applicants committed to creating well-planned provide direct loans to local communities and applicants committed to creating well-planned industrial parks. Guidelines for this program can be viewed at this
PDF.
Urban Redevelopment Loan
Urban Redevelopment Loan provides low-interest loans to municipalities or designated nonprofit economic development organizations to acquire real estate for assembly into developable parcels and remediate any brownfield contamination site to entice private business investment in distressed urban locations. The Urban Redevelopment Loan program was created to remove barriers to urban core redevelopment thereby promoting economic development and business expansion through Innovation Ohio Loan Fund provides loans for acquisition, construction, financial assistance for eligible projects in Ohio. Guidelines for this program can be viewed at this
PDF.
Research & Development Investment Loan Fund Program
Research & Development Investment Loan Fund Program provides loans commitment to research and development activities. To view the program summary click on this
PDF.
Innovation Ohio Loan Fund
Innovation Ohio Loan Fund provides loans for acquisition, construction, and related costs of technology, facilities and equipment purchase. The fund was created to assist existing Ohio companies develop nextgeneration products and services within certain Targeted Industry Sectors. The Innovation Ohio Loan Fund provides competitive financing terms on loans to finance projects that will positively impact Ohio by creating high-value jobs, increasing tax revenues, and improving the economic welfare of Ohio. More information about this loan can be found on the
Ohio Department of Development website.
Ohio Capital Access Program
The Ohio Capital Access Program encourages lending by establishing a unique loan "guarantee" reserve pool at an Ohio Capital Access Program participating lending institution. The state, the lender, and the borrower each pay a small fee contribution into the pool. With every loan each participating lending institution enrolls in the Ohio Capital Access, the reserve pool at that institution grows. The reserve pool is available to the participating lender for recovery of any losses on any loan they have enrolled in the Ohio Capital Access Program. Visit the
Ohio Department of Development website for more information.
Ohio Minority Business Direct Loan Program
The Ohio Minority Business Direct Loan Program provides fixed, low-interest rate loans to certified minority-owned businesses that are purchasing or improving fixed assets and creating or retaining jobs. The loans can be used to finance up to 60 percent of the project value and require participation by another lender. Visit the
Ohio Department of Development website for more information.
Brownfield Revolving Loan Fund
The Brownfield Revolving Loan Fund capitalized by a grant from the U.S. Enviornmental Protection Agency, offers below market rate loans to assist with the remediation of a brownfield property to return the property to a productive economic use in the community. Click here for more information on this program.
Ohio Department of Development contact information can be found here.