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Ohio Loan Programs

Ohio Linked Deposit Program: The Ohio Linked Deposit Program helps Ohio small businesses fund the creation of new employment opportunities by lowering the interest rate on bank loans for small businesses.  Cheaper borrowing allows businesses more time to become financially stable after completing an expansion or recovering from a crisis. 
Contact – Ohio Department of Development

GrowNow Financing: GrowNow is aimed at creating and saving jobs as well as helping small businesses adapt to changing circumstances as they grow.  GrowNOW provides an interest-rate reduction on loans to Ohio's small businesses and, as long as it's creating or protecting jobs, the loan can be used for any purpose. Altogether, a business could save up to $24,000 over two years, money that effectively stretches the value of the loan, and can help a business to expand, move, or adapt to the changing marketplace.

Ag-Link Program: The Ohio Treasurer of State was once again committed to providing Ohio farmers with reduced rate financing to help offset the high cost of annual operating funds in this difficult economic climate. The Treasury has leveraged the $125MM allocated to the Agricultural Linked Deposit (Ag-Link) program to secure certificates of deposit with local banks and the Farm Credit system to provide interest rate reductions to Ohio farmers.  Ag-Link’s structure is similar to GrowNow, using state funds to leverage lower interests for loans ranging up to $100,000 for Ohio farmers.

BidOhio: BidOhio benefits Ohio taxpayers and banks by providing an easy and equitable bidding award process. The Treasury conducts auctions online at www.bidohio.com on the first and third Tuesday of every month, awarding up to $50 million in certificates of deposit during each auction.

SaveNOW Program (Pilot Program): The Ohio Treasury and partnering banks are offering the new SaveNOW program, a savings account with 3.25%+ bonus interest to improve the financial health of Ohioans and their families. The SaveNOW program has two components: High Interest Savings Accounts and Financial Education.

The bank partners are:
National City Bank, PNC Bank, Wayne Savings Bank-based in Wooster, MainSource Bank-based in Troy, Liberty Savings Bank- based in Wilmington, First National Bank-based in Upper Sandusky

Rapid Outreach Account: These grant funds are for on- or off- site infrastructure improvements, including water, sewer, road and rail improvements. This fund is for companies primarily engaged in manufacturing, R&D, high technology, corporate headquarters, and distribution. Given the demand for limited grant funds, qualified projects must involve substantial job creation of retention, and all other public and private sources of financing must be considered before the availability of Rapid Outreach funding is determined.
Contact – Ohio Department of Development

Pioneer Rural Loan: Purpose is for small for-profit start-up and existing businesses in Ohio’s rural areas that will create and retain jobs.  The program is available to businesses that can document job creation in Ohio’s rural areas.  Borrowers must create/retain at least one job for every $35,000 received during the first 3 years of the project.  The loan can be used for buying, expanding, or renovating land facilities as well as purchasing equipment and has a maximum loan amount of $750,000.   
Contact – Ohio Department of Development

Regional 166 Direct Loan: Direct loan financing provides funds for land and building construction, building acquisition, expansion and renovation, and purchase of machinery and equipment.  Amounts of financing are usually set at 30 percent of the project cost to a maximum of $1 million, subject to an increase by the Director of Development, with a minimum loan amount of $350,000. The rate is fixed (currently at 3 percent), with terms similar to those of commercial bank financing. Eligible projects must involve significant job creation or retention.
Contact – Ohio Department of Development

Ohio Enterprise Bond Fund: Revenue bond financing is available 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 depend on the type of bond issued, while terms are between 7 to 10 years for equipment and 15 to 20 years for real estate. Up to $10 million in financing is available through this program.
Contact – Ohio Department of Development

Research & Development Investment Loan Fund: Direct loan financing of between $1 million and $25 million is available for projects primarily engaging in research and development activity. Rates are fixed (currently at 3 percent), with terms similar to those of commercial bank financing. Companies receive a dollar-for-dollar, non-refundable Ohio corporate franchise (income) tax credit for all principal and interest payments during the year.
Contact – Ohio Department of Development

Rural Industrial Park Loan: Provides direct loans to rural, distressed local communities and applicants committed to creating well-planned industrial parks.  The Rural Industrial Park Loan program was created to provide direct loans to local communities and applicants committed to creating well planned industrial parks. 
Contact – Ohio Department of Development

Ohio Minority Direct Loan Program:  The Ohio Minority Direct Loan Program provides direct loans for businesses locating or expanding in Ohio that demonstrate they will create new jobs for Ohio citizens.
The program, authorized under Chapter 122 of the Ohio Revised Code, is administered by the Ohio Department of Development’s (ODOD), Office of Minority Financial Incentives.  The Minority Direct Loan Program focuses on several factors to determine the eligibility of a business for the State’s incentive financing. Chief among those determinations are the number of jobs created and/or retained as a result of the State’s investment, the extent of participation by the business and a conventional lender in the project; and the demonstration by the business that the State’s assistance is necessary in order for the project to go forward.

In its review of loan applications, the office also evaluates the management capacity of the company, the availability of working capital, and the overall ability of the company to repay its debt. These criteria are designed to provide a more definite review of the applicant’s need and capabilities.  The State’s financing is take-out financing. In other words, the business will need to complete its project utilizing interim financing from a conventional lender, and its equity.  When the project is completed, the State’s funds will be released.

Funds received under the Minority Direct Loan Program may be used for part of the costs of acquisition, renovation or construction of depreciable fixed assets. In addition, limited soft costs related directly to the fixed asset expenditure may be included. Examples of eligible soft costs include: architectural/engineering costs; installation costs for machinery; and financing costs for bank loans.

Contact – Ohio Department of Development

Minority Business Bonding Program: The Minority Business Bonding Program is designed to provide bonding assistance to minority businesses who otherwise cannot obtain bonding. The goals of the program are: to produce long term positive results by assisting minority businesses in eventually obtaining bonding from the private sector; and to provide minority businesses with the best opportunity for long-term success and stability, while concurrently reducing the State of Ohio's exposure to losses. The maximum bond amount is one million dollars per company. A premium for each bond issued (not to exceed two percent of the penal sum of the bond) is charged, however there is no charge for bid bonds if the bid is unsuccessful. The actual premium rates charged will be determined by the Ohio Department of Development's Office of Minority Financial Incentives on a case-by-case basis.
Contact – Ohio Department of Development

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.  This loan was created to remove the barriers to urban core redevelopment thereby promoting economic development and business expansion through financial assistance for eligible projects in Ohio.
Contact – Ohio Department of Development

Innovation Ohio Loan Fund:  The Innovation Ohio Loan Fund was created to assist existing Ohio companies develop next generation products and services within certain Targeted Industry Sectors by financing the acquisition, construction and related costs of technology, facilities and equipment. Ohio’s manufacturing sector will be a key target of this program. The Innovation Ohio Loan Fund provides competitive financing terms on loans to finance projects that will positively impact Ohio by creating high-value jobs, increased tax revenues, and improve the economic welfare of the State of Ohio.

The Innovation Ohio Loan Fund addresses an identified need in the capital-funding continuum.  The Innovation Ohio Loan Fund is intended to supply capital to Ohio companies having difficulty securing funds from conventional sources due to technical and commercial risk factors associated with the development of a new product or service. The Innovation Ohio Loan Fund can finance up to 75 percent

Ohio Linked Deposit Program: The Ohio Linked Deposit Program helps Ohio small businesses fund the creation of new employment opportunities by lowering the interest rate on bank loans for small businesses.  Cheaper borrowing allows businesses more time to become financially stable after completing an expansion or recovering from a crisis. 
Contact – Ohio Department of Development