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Business Incentives
Loans and Grants
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Program Description
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Rate/Terms
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Benefits
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Eligibility
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Ohio Enterprise Bond Fund
Provides funding for land and building acquisition, construction,
expansion or renovation, and equipment purchases for commercial or
industrial projects between $1.5 million and $10 million in size. |
Long-term, fixed rate for up to 20 years
Interest rate based on Standard & Poor's A-minus rating, for up to
90% of total project amount |
Long-term, fixed rate for up to 90% of total project costs
Access to national capital markets for unrated companies
May not
require third-party credit enhancement |
Must
show repayment and management capabilities
Must be able to document job creation or retention
Ohio prevailing wage rate applies |
Ohio Qualified Small-Issue Bond Program
Provides low-interest financing for small manufacturing facilities
locating or expanding in Ohio that have or can obtain allocations of
volume cap. Awarded pursuant to Sections 122-4-01 to 122-4-08, OAC. |
Financing may be used for capital expenses and up to 2% of issuance
costs
Total capital expenditure of the company and related parties cannot
exceed $10 million in any one political subdivision
Maximum expenditure includes a time period 3 years before and 3
years after the bond issue
Projects using bond proceeds for acquisition of existing structures
and equipment located therein must use at least 15% of the bond
amount spent on the acquisition itself for rehabilitation of that
structure and equipment
A
maximum 25% of bond proceeds may be used to acquire land
A maximum 25% of bond proceeds may be used for facilities ancillary
to core manufacturing |
Qualified small-issue bonds can finance up to 100%of the cost of
land, buildings and equipment in new construction, expansion or
rehabilitation of industrial facilities.
Bonds are issued at interest rates historically between 3/4 and 3%
below prime lending rates |
Core
manufacturing facilities expanding in Ohio or planning to operate in
Ohio
Some ancillary facilities
Corporations, partnerships, joint ventures, sole proprietorships,
individuals or sub-chapter "S" Corporations can utilize this program
if they have or can obtain allocations of volume cap |
Volume Cap Program
Provides authority to issue tax-exempt bonds for select private
activities. Awarded pursuant to Sections 122-4-01 to 122-4-08, OAC. |
Projects
interested in issuing tax-exempt debt must file an application with
State Development Director
Amount of assistance varies depending upon the purpose for which
authority is sought
$1,000 application fee and deposit(s) are required
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Authorizes bond issuers with ability to finance projects at interest
rates below that of the conventional market |
Must
involve mortgage loans to low-income home buyers; student loans;
construction or improvement of certain types of manufacturing
facilities, solid waste treatment equipment or pollution abatement
facilities; or multifamily rental housing development or renovation
Project must not have been placed in service for at least two years
prior to the bond's date of issue
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166 Direct Loan
Provides loans for land and building acquisition, expansion or
renovation, and equipment purchase. |
Up to
30% of total eligible fixed cost ($350,000 - $1 million)
Two-thirds of prime fixed rate for 5-15 years
Equity minimum 10%
In distressed areas of the state, preferential rates and terms are
available
State Development Director may authorize a higher loan amount or
modified rate and terms that address a unique and demonstrated
economic development need |
Rate,
term and availability |
Must
show repayment and management capabilities
Must create or retain 1 job for every $15,000 received or $35,000 in
Priority Investment Areas
Ohio
prevailing wage rate applies |
166 Regional Loan
Provides loans for land and building acquisition, expansion or
renovation, and equipment purchase. Twelve local economic
development agencies administer the program |
Up to
40% of total eligible fixed cost ($350,000 maximum)
Rate negotiable for 5-15 years
Equity minimum 10%
State Controlling Board approval required |
Low
fixed rate
Long term availability for smaller projects |
Must
show repayment and management capabilities
Must create or retain 1 job for every $35,000 received
Ohio prevailing wage rate applies |
Pioneer Rural Loan
Provides direct loans for businesses locating or expanding in Ohio's
rural areas. Businesses must demonstrate that they will create new
jobs for Ohio citizens in rural areas. Loan may be used for
acquisition of land and buildings, new construction, renovation and
expansion of existing buildings and acquisition of machinery and
equipment. |
Maximum
loan amount is $750,000
Participation for any one project cannot exceed 75% of total
fixed-asset costs
Annual interest rate will be fixed at not greater than half the
prime rate, which shall be determined solely by the State
Development Director
Term will be based on the useful life of the assets being financed
and the term of the bank loan in the project (not to exceed 15 years
for real estate or 7 years for machinery) |
Creates
jobs in rural areas |
Eligible
areas include counties with labor surplus, distressed counties and
situationally distressed counties
Program seeks to finance projects that will create/retain at least 1
job for every $35,000 of state investment during the first 3 years
of the project |
Capital Access Program
Encourages lending by establishing a unique loan “guarantee” reserve
pool at the lending institution. The State, the lender and the
borrower each make a small contribution into the pool. The reserve
pool is available to the lender for recovery of any losses they may
have for any loan that is enrolled in the Capital Access Program.
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Determined by lender
A program reserve account, in the name of the Director of the Ohio
Department of Development, must be established at the
participating lender
Borrower must contribute 1.5% - 3% of the principal amount
Lender must match borrower’s contribution
Lender may recover all or part of its contribution from the
borrower in any agreed upon manner
State contributes an amount equal to 10% of the principal amount
of the capital access loan to be enrolled
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Allows
lenders to lend to businesses that they may otherwise have denied
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Borrower
must be a small business with annual sales of less than $10 million
and have its principal place of business in Ohio
Use of proceeds may include working capital or the purchase, or
construction of fixed assets such as buildings and equipment
Refinancing of other lenders’ loans is also eligible |
Minority Direct Loan
Provides loans for the purchase or improvement of fixed
assets for state-certified minority-owned businesses. |
Up to
40% of total project cost at 4.5% fixed for up to 15 years
Equity required
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Rate,
term and availability
Greater bank security
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Company must be at least 51% minority owned and controlled
Must be a state-certified minority business
Must show repayment ability and management capabilities.
Must create one job for every $35,000 received
Ohio prevailing wage rates apply for construction
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Ohio Mini-Loan Guarantee Program
Provides loan guarantees for fixed assets for small business
(start-up or existing business expansion) for projects of $100,000
or less. |
Up to
45% guarantee of an eligible bank loan
Interest rate on the state-guaranteed portion of the loan is
currently 5.5%
Maximum term of the guarantee in 10 years
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Business development and/or growth
Increased work force
Low interest rates
Increased bank security
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Small
businesses with fewer than 25 employees
50% of guarantee funds are targeted to minority- or women-owned
businesses |
Rural Industrial Park Loan
Provides direct loans and loan guarantees to rural, distressed local
communities and other eligible applicants committed to creating
well-planned industrial parks. |
Maximum
loan available is $1 million and cannot exceed 75% of total eligible
costs
A government entity applying for infrastructure improvements can
designate itself as an eligible applicant and request an amount up
to 75% percent of proposed infrastructure costs
Term can be up to 5 years and may be extended for 10 years in the
event the property has not been sold
Interest rate is set at 0% for 5 years and will be increased to no
greater than 50% of prime if term is extended |
Availability of newly constructed buildings and completed
infrastructure will encourage business expansion in rural Ohio |
Nonprofit organizations that promote economic development in rural
areas
Local governmental units are eligible to apply for the financing of
off-site public infrastructure improvements (i.e., water, sewer,
roads, etc.) |
Urban Redevelopment Loan
Removes development barriers from urban core property so that
private sector job opportunities can be created. |
Maximum
loan available is $5 million or 40% of eligible costs, whichever is
less
Maximum loan term up to 15 years
Principal and interest may be deferred for the first 5 years
Loan will be amortized over the balance of the term at a rate of
interest no greater than 50% of the prime rate as determined by the
Director of Development
Sale or lease of project site or facility will trigger repayment
Funding Option #1: On direct loans to municipalities, ODOD may serve
as an interim lender by using the "Last in Method". When the
eligible project is substantially complete (certified by the project
architect) the State funds may be utilized to pay for the
completion.
Funding Option #2: On direct loans to designated nonprofit economic
development organizations, the applicant will be required to
complete their project utilizing financing from a conventional
lender and/or the applicants equity.
Municipalities will be limited to a $10 million loan balance and no
more than 3 projects can be undertaken at a time
Future applications will be judged on performance of previous
applications
State Controlling Board approval required |
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Distressed MSA Central Cities
Municipality or designated nonprofit economic development
organization
Land and building acquisition, infrastructure improvements,
brownfield site remediation activities, and building
renovation/demolition |
Urban and Rural Initiative
Provides assistance to municipalities and nonprofit economic
development organizations in distressed areas for land acquisition,
infrastructure improvements, renovation of existing buildings and
Brownfield site remediation (project must participate in the
Voluntary Action Program). The project must result in economic reuse
or the creation of industrial parks. |
Grants
can be awarded in distressed urban and rural areas
25% local match is required
$500 nonrefundable application fee is required at the time of
application |
Supports
local efforts toward Brownfield site clean-up, economic reuse and
the creation of industrial parks |
Elected
officials of an eligible area must, by ordinance or resolution,
designate the applicant, specify the applicant's financial
participation in the project; include a marketing strategy, and
identify a management plan |
