Financial Resources
Financial Resources are offered to qualifying companies in Union County. Financial programs are typically tied to the creation or retention of jobs, private investment into building construction and machinery and equipment, and the expansion of the company’s payroll.
The following financial resources are available to existing businesses wanting to expand or potential businesses looking to locate in Union County:
Union County Financial Resources
Union County Enterprise Zone Program
Click here to view the Enterprise Zone Map
The Union County Enterprise Zone Program offers tax abatements on real (building construction) and/or personal property (machinery and equipment, furniture and fixtures, inventory) for manufacturing companies wanting to expand or locate within the designated Enterprise Zone areas which are located in the City of Marysville and Village of Richwood (click here for a map of the Union County Enterprise Zone Areas). The term and amount of the tax abatement is based upon the number of employees, amount of payroll, and amount of private property investment. Click here for the specific Union County Enterprise Zone Program Guidelines. If you are interested in the Enterprise Zone Program, you may contact:
Executive Director for Economic Development
Union County-Marysville Economic Development Partnership
227 East Fifth Street
Marysville, Ohio 43040
(937) 642.6279
(800) 642.0087
(937) 644.0422 (facsimile)
www.whereprideresides.org
Marysville Community Reinvestment Area
Click here to view the Community Reinvestment Map
Click here to view the brochure outlining the guidelines for the CRA
In an effort to improve its uptown and surrounding neighborhoods, the City of Marysville established a Community Reinvestment Area that provides real property tax abatements for residential, commercial, office and industrial development. The term and amount of the abatements vary depending on the land use, amount of jobs created or retained, amount of payroll, and the amount of the investment. Click here for the brochure outlining the Marysville CRA. If you are interested in the Community Reinvestment Area, you may contact:
Executive Director for Economic Development
Union County-Marysville Economic Development Partnership
227 East Fifth Street
Marysville, Ohio 43040
(937) 642.6279
(800) 642.0087
(937) 644.0422 (facsimile)
www.whereprideresides.org
Uptown Plain City Community Reinvestment Area
Click here to view the Uptown Plain City CRA Brochure and Map
In 2007, the Village of Plain City established a Community Reinvestment Area in the Uptown Area which allows real property tax abatements on qualifying residential, commercial, office and industrial construction projects. The term and amount of the abatements vary depending on the land use, amount of jobs created or retained, amount of payroll, and the amount of the investment. The purpose of the CRA is to encourage the revitalization and growth and development of Uptown Plain City. If you are interested in the Uptown Plain City CRA, you may contact:
Executive Director for Economic Development
Union County Economic Development Partnership
227 East Fifth Street
Marysville, Ohio 43040
(937) 642.6279
(800) 642.0087
(937) 644.0422 (facsimile)
www.whereprideresides.org
Plain City US 42 Business Park Community Reinvestment Area
Click here to view the Plain City US 42 Business Park CRA Map
In 2007, the Village of Plain City established a Community Reinvestment Area along the US 42 Business Park and the area east of North Chillicothe Street which allows real property tax abatements on qualifying office and industrial construction projects (primary retail projects do not qualify). The term and amount of the abatements vary depending on the land use, amount of jobs created or retained, amount of payroll, and the amount of the investment. The purpose of the CRA is to encourage the growth and development of the prime office and industrial land along and around the US 42 by-pass. If you are interested in the Plain City US 42 Business Park CRA, you may contact:
Executive Director for Economic Development
Union County Economic Development Partnership
227 East Fifth Street
Marysville, Ohio 43040
(937) 642.6279
(800) 642.0087
(937) 644.0422 (facsimile)
www.whereprideresides.org
Union County Revolving Loan Fund
The Union County Revolving Loan Fund (RLF) program is available for companies creating or retaining jobs and making private property investments within the community. Loans may be granted up to $500,000 and are based upon a loan amount not to exceed $25,000 per job created or retained. The Union County Board of County Commissioners, with assistance from the Community Improvement Corporation, operates the RLF for the County. For more information, you may access the program brochure by clicking on RLF. If you are interested in the RLF, you may contact:
Executive Director for Economic Development
Union County-Marysville Economic Development Partnership
227 East Fifth Street
Marysville, Ohio 43040
(937) 642.6279
(800) 642.0087
(937) 644.0422 (facsimile)
www.whereprideresides.org
Union County Community Improvement Corporation
The Union County Community Improvement Corporation (CIC) is the statutory non-profit Economic Development arm of the community. The CIC has unique economic development capabilities that include the ability to borrow money, purchase and lease land and buildings, purchase and lease personal property, and to issue bonds or notes. The CIC also oversees the Union County Community Improvement/Economic Development Grant Program that you may access by clicking on CIED. You may find out more about the CIC by clicking on Union County CIC. You may also contact:
Executive Director for Economic Development
CIC Executive Director
Union County-Marysville Economic Development Partnership
227 East Fifth Street
Marysville, Ohio 43040
(937) 642.6279
(800) 642.0087
(937) 644.0422 (facsimile)
www.whereprideresides.org
Union County Financial and Lending Institutions
Union County has a substantial number of banks willing to provide financial assistance to businesses within the community. These financial and lending institutions are as follows:
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BANK ONE
406 West Fifth Street
Marysville, Ohio 43040
937-644-8154
Fax: 642-1607
www.bankone.com |
CHAMPAIGN NATIONAL BANK
204 West Main Street
Plain City, Ohio 43064
614-873-4688
Fax: 873-5878
www.champaignbank.com |
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CITIZENS NATIONAL BANK
105 West Main Street
Plain City, Ohio 43064
614-873-5521
Fax: 873-1087
www.citnatbk.com |
DELAWARE COUNTY BANK
1169 West Fifth Street
Marysville, Ohio 43040
937-644-2266
Fax: 644-8466
www.delawarecountybank.com |
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DELAWARE COUNTY BANK
108 South Main Street
Marysville, Ohio 43040
937-644-0008
Fax: 644-0004
www.delawarecountybank.com |
FIFTH THIRD BANK
120 West Fifth Street
Marysville, Ohio 43040
937-642-4055
Fax: 642-6034
www.53.com |
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HUNTINGTON NATIONAL BANK
220 West Fifth Street, P.O. Box 422
Marysville, Ohio 43040
937-644-8125
Fax: 644-6015
www.huntington.com |
LIBERTY NATIONAL BANK
160 Coleman's Crossing Blvd.
Marysville, Oh 43040
937-642-0467
Fax:937-642-9318
www.LNBbank.com |
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MARYSVILLE'S FIRST FEDERAL COMMUNITY BANK
251 Coleman's Crossing Blvd.
Marysville, Oh43040
937-642-3421
Fax:937-642-3859
www.ffcb.com
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NATIONAL CITY BANK
204 East Fifth Street
Marysville, Oh 43040
937-644-315
Fax: 937-642-6867
www.nationalcity.com |
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OHIO FARMERS STATE BANK
24 West Ottawa Street
RIchwood, OH 43344
740-943-2374
Fax:740-387-0405
www.farmersstatebank.com |
RICHWOOD BANKING
28 North Frankiln Street
RIchwood, Oh 43344
740-943-2317
Fax: 740-943-2138
www.richwoodbank.com |
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RICHWOOD BANKING
601 West Main Street
Plain City, Ohio 43064
614-873-4671
Fax: 8873-4519
www.richwoodbank.com |
RICHWOOD BANKING COMPANY
249 West Fifth Street
Marysville, Ohio 43040
937-642-5757
Fax: 937-642-6257
www.richwoodbank.com |
Central Ohio/Columbus Financial Resources
General Financial Resources for Central Ohio/Columbus
Angel Capital Electronic Network
This SBA program provides an Internet-based secure listing service for entrepreneurs seeking equity financing of $250,000 to $5 million from accredited “angel” investors. The “angels” using ACE-Net can negotiate directly with listed companies to provide equity capital funding and advice for stake in the entrepreneur’s corporation. Ace-Net is operated as a partnership between the SBA’s Office of Advocacy and a number of non-profit organizations nationwide.
Small Business Administration
2 Nationwide Plaza, Suite 1400
Columbus, Ohio 43215-2542
(614) 469-6860
FAX: (614) 469-2391
www.sba.gov
Business and Industry Guaranteed Loans
Business and Industry Guaranteed Loans is administered by the USDA, Rural Development and is submitted through a private lender. Any corporation, legal entity, trust or partnership, either for-profit or non-profit, may apply. Entities involved in industrial manufacturing, wholesale, retail and services are eligible. However, this entity must be located in a rural community with a population of less than 50,000. Priority is given to communities of less than 25,000 people. The loan maximum is set at $10 million, with preference given to loans of under $5 million. Loan requests of under $500,000 will generally be referred to the Small Business Administration. Interest rate is negotiated as fixed or variable. Equity requirements: new start-ups must have minimum tangible balance sheet equity of 20 percent excluding subordinated debt or appraisal surplus. Established, successful businesses must have a minimum 10 percent equity or more, depending upon lender’s requirements. Guarantee is established at 80 percent of the loan amount with a fee set at two percent of the guaranteed portion.
U.S. Department of Agriculture, Rural Development
Room 507, Federal Building
200 N High St.
Columbus, Ohio 43215
(614) 255-2500
FAX: (614) 255-2559
www.rurdev.usda.gov/oh/
CAPLines (Contract Lines, Builders, Seasonal Lines, Asset Based Lines)
CAPLines is the U.S. Small Business Administration’s umbrella lending program that helps small businesses meet their short-term and cyclical working capital needs. CAPLines can be used to finance seasonal working capital needs; finance the direct cost of performing construction, service and supply contracts; finance the direct costs associated with commercial and residential construction without a firm commitment for purchase; and finance operating capital by obtaining advanced against existing inventory and accounts receivable.
All CAPLines are provided on a guaranteed basis and can be up to $72 million, except for the Small Asset-Based loan, which is limited to $200,000. However, the maximum SBA guaranty share is limited to $1 million or 75 percent, whichever is less. The rate of interest will be negotiated between the borrower and the lender, but cannot exceed the prime rate plus 2.25 percent.
Small Business Administration
2 Nationwide Plaza, Suite 1400
Columbus, Ohio 43215-2542
(614) 469-6860
FAX: (614) 469-2391
www.sba.gov
Certified Development Company Program 504
Administered by the Small Business Administration, this program is designed to assist for-profit businesses whose net worth does not exceed $7 million, and net profit (after tax) does not exceed $2.5 million. The loan is for fixed asset financing only. Maturity length is either 10 or 20 years based on the use of the loan proceeds. Interest rates are competitive. Collateral consists of an asset mortgage or asset lien, with personal guarantee. A non-project asset pledge may be required dependent upon the circumstances associated with the project and loan agreement. The Community Capital Development corp. provides financing for physical capital including land, machinery, buildings and equipment. DDCD financial participation range is from $50,000 to $1 million, with a ceiling set at 40 percent of the total project costs plus fees. The DDCD fee is not to exceed 1.5 percent processing fee on the SBA debenture, an additional .125 of 1 percent as added to the interest rate and .69 percent service fee is paid on the unpaid debenture balance. Total fees are approximately 4.375 percent of the loan.
Small Business Administration
2 Nationwide Plaza, Suite 1400
Columbus, Ohio 43215-2542
(614) 469-6860
FAX: (614) 469-2391
www.sba.gov
Child Day Care Microloan Program
This is a direct loan program to child care providers. In home care, Type A or Type B, along with facilities located in Franklin and contiguous counties are eligible. The use of the loan proceeds may be for working capital, inventory and small equipment. The loan is based on demonstrated business needs. The average loan is $12,000, with a minimum loan amount of $500 and a maximum loan amount of $25,000. The interest rate for this loan is a maximum of prime plus two points, at a fixed rate. A personal guaranty, lien or mortgage of assets and cosigners may be required as collateral. There is a $25 application fee and a nominal fee to cover costs of processing and closing.
Community Capital Development Corp.
900 Michigan Ave.
Columbus, Ohio 43215
(614) 645-6439 or toll free (888) 756-2232
FAX: (614) 645-8588
www.ccdcorp.org
Columbus Minority Contractors and Business Assistance Program
A Program funded by the Ohio Department of Development to assist socially- or economically-disadvantaged persons including, but not limited to, African-Americans, Asian-Indians, Asian-Pacific, Hispanic and Native Americans. CMCBAP provides no-cost counseling for start-up and existing businesses in areas including business plans, management, accounting, taxes, loan and bond packaging and certification preparation. It also provides a
construction plan room that enables clients to view plans and specifications.
Columbus Minority Contractors and Business Assistance Program
1000 E. Main St.
Columbus, Ohio 43215
(614) 252-8005
FAX: (614) 258-9667
www.comba.com
Columbus Venture Network
The Columbus Venture Network, an affiliate of the Greater Columbus Chamber of Commerce, is the premier source for venture investment activity and deal flow in the region. The CVN fulfills its mission of stimulating private investment in Greater Columbus ventures, educating angel investors and connecting them to Greater Columbus entrepreneurs by: offering entrepreneurs the opportunity to present their business plans in front of investors; providing angel investors more opportunities to invest in private, early stage companies; and helping angel investors locate and analyze opportunities.
CVN provides the network between the individual “angel” investors and the entrepreneur. The six bi-monthly membership meetings and a number of special events provide opportunities to investors to network with peers and discuss area deal flow. CVN also holds interactive business plan review workshops called the CVN Forum to provide insight into the investment process with up-and-coming entrepreneurs. This allows investors to share insight on the aspects of business development that can be the difference between success and failure.
Columbus Venture Network
Greater Columbus Chamber of Commerce
37 N. High St.
Columbus, Ohio 43215
(614) 225-6938
FAX: (614) 469-8250
www.columbus.org/investor.html
Defense Loan and Technical Assistance Program
This is a joint program of the U.S. Small Business Administration and the Department of Defense, which provides financial and technical assistance to defense-dependent small businesses adversely impacted by defense reductions. DELTA provides SBA-backed loans of up to $1.25 million under the 7(a) Loan Guaranty Program and SBA-guaranteed debentures of up to $1 million (up to 40 percent of a project) under the 504 Certified Development Company Program. The loan proceeds can be used for working capital, acquisition of assets, raw materials or inventory, capital improvement and refinancing of current debt.
Small Business Administration
2 Nationwide Plaza, Suite 1400
Columbus, Ohio 43215-2542
(614) 469-6860
FAX: (614) 469-2391
www.sba.gov/financing
Export Working Capital Program
This program enables the SBA to guarantee up to 90 percent of a secured loan or $1 million, whichever is less. Loan maturity may be for up to 18 months and not to exceed three years of annual renewals. Loans can be for single or multiple export sales and can be extended for pre-shipment working capital, post-shipment exposure coverage or a combination of both. Proceeds can only be used to finance export transaction.
Small Business Administration
2 Nationwide Plaza, Suite 1400
Columbus, Ohio 43215-2542
(614) 469-6860
FAX: (614) 469-2391
www.sba.gov/financing
EZ Business Loan Fund
This is a direct loan program for existing business located in Columbus’ Empowerment Zone. Loan proceeds may be used for equipment, land, building acquisition, inventory and working capital. The loan is based on demonstrated business needs. The average loan size is $70,000. The minimum loan amount if $25,000 and the maximum amount is $150,000. The interest rate is three to five percent, depending on use of funds and a 10 percent down payment may be required. A personal guaranty, lien or mortgage of assets and cosigner may be required as collateral. Job creation of at least one job per $35,000 loaned is required. There is a $25 application fee and a nominal fee to cover costs of processing.
Community Capital Development Corp.
900 Michigan Ave.
Columbus, Ohio 43215
(614) 645-6439 or toll free (888) 756-2232
FAX: (614) 645-8588
www.ccdcorp.org
Guaranty Loan Program-7(A)
Administered by the Small Business Administration, guaranteed loans are designed to assist small businesses that meet SBA size criteria and are operating for profit. Real estate investment and businesses involved in speculation are ineligible. Although rates are variable, interest rate maximum is 2.75 percent above prime on loan terms of seven years or greater, and 2.25 above prime on loan terms of seven years or greater, and 2.25 percent above prime for terms of less than seven years or greater, and 2.25 percent above prime for terms of less than seven years. Collateral consists of available assets as well as a personal guarantee by the CEO and principal owners. If insufficient commercial assets exist, then a personal lien may be placed. Loan guarantees are 85 percent for loans up to $150,000, and 75 percent if a loan is greater than $150,000, up to $1 million. Fees are set on a sliding scale from two percent to 3.5 percent of the guaranteed loan portion for a loan maturity of greater than one year, and 0,.25 percent of the guaranteed portion for loan maturity of one year or less. Required asset investment ranges between 15 percent and 40 percent, and may amount up to 50 percent on risky ventures.
Small Business Administration
2 Nationwide Plaza, Suite 1400
Columbus, Ohio 43215-2542
(614) 469-6860
FAX: (614) 469-2391
www.sba.gov/financing/fr7aloan.html
Innovest
Innovest is an annual conference uniting venture capital and private investment with companies seeking financing.
Enterprise Development Inc.
11000 Cedar Ave.
Cleveland, Ohio 44106
(216) 229-9445
FAX: (216) 229-3236
www.innovest.org
International Trade Loan Program-7(A)
Administered by the Small Business Administration, this is a guaranteed loan program designed to assist companies that are adversely affected by import competition or companies that can show export market expansion or new export market creation due to the receipt of loan proceeds. Interest rates offered are the same as the SBA Guaranteed Loan. Only domestic collateral (that which is located within the United States) will be accepted. Collateral consists of a first mortgage or lien placed on all financed items. Additional collateral may be required. The SBA can guarantee up to $1.25 million less the amount of the guaranteed portion of outstanding SBA loans. Fees required are the same as the Guaranteed Loan program. Loan maturity can be up to 25 years. Funds are to be used for working capital or other physical capital (equipment, facilities, etc.) located within the United States and used for the production of goods and services.
Small Business Administration
2 Nationwide Plaza, Suite 1400
Columbus, Ohio 43215-2542
(614) 469-6860
FAX: (614) 469-2391
www.sba.gov/financing
LowDoc-7(A)
Administered by the Small Business Administration, the eligibility for this loan is similar to that of the Guaranteed Loan. General qualifications include a business size of less than 100 employees and three years of average sales of $5 million or less. The interest rates for this loan are the same as those of the Guaranteed Loan. The maximum size of the loan is $150,000. Collateral requirements are similar to the Guaranteed Loan, with personal guarantees from the principals being absolutely necessary. Fees are set at two percent of the guaranteed portion of the loan amount of $150,000 on loan maturities of greater than one year, and 0.25 percent for loan maturities of one year or less. Receipt of the loan is dependent upon the credit history and character of the borrower. Those who have declared bankruptcy or have been indicted or convicted of a felony are ineligible, yet they may be eligible for the Guaranteed Loan. LowDoc is considered an expedited loan program with a rapid response time in loan processing, usually within two business days.
Small Business Administration
2 Nationwide Plaza, Suite 1400
Columbus, Ohio 43215-2542
(614) 469-6860
FAX: (614-469-2391
www.sba.gov/financing/frlowdoc.html
Microloan Program
SBA is a locally based non-profit organization that provides small loans and technical assistance to small businesses. Under the MicroLoan Program, a small business can borrow up to $35,000 from an intermediary lender, which also provides management and technical assistance. The proceeds can be used for working capital or to purchase inventory, supplies, furniture, fixtures, equipment and/or machinery. These funds may not be used to purchase real estate, to provide a down payment on a project in excess of $35,000 in value or, with limited exceptions, to refinance existing debts. The maximum term allowed for a loan is six years, however, loan terms vary according to the size of the loan, the planned use of funds, the requirements o f the intermediary lender and the needs of the small business borrower. Interest rates vary, depending upon the intermediary lender.
Small Business Administration
2 Nationwide Plaza, Suite 1400
Columbus, Ohio 43215-2542
(614) 469-6860
FAX: (614) 469-2391
www.sba.gov/financing/frmicro.html
Ohio 166
This is a participation loan made in conjunction with a bank to an eligible small business. The loan provides long-term, low interest-rate financing for capital projects such as the purchase of land and/or a building or equipment. Generally, only a 10 percent down payment is required. Job creation of at least one job per $35,000 loaned is required. The maximum loan amount is $350,000. Terms are 15 years on real estate and seven years on machinery. The rate is two-thirds of prime at the time of closing. Administrative fees are 1.5 percent of the loan, plus a $1,000 application fee. Personal guarantees from all major owners and a shared lien on assets are required.
Community Capital Development Corp.
900 Michigan Ave.
Columbus, Ohio 43215
(614) 645-6439 or toll free (888) 756-2232
FAX: (614) 645-8588
www.ccdcorp.org
Physical Disaster Loan
This loan is administered by the Small Business Administration for any size business or non-profit organization that has incurred damages in a declared disaster area. Loan size, loan maturity, interest rates, collateral requirements and fees are on a situation, case-by-case basis. A mobile adjuster or processor team is dispatched to the site of the disaster and handles all particulars. The applicant must show the ability to repay the loan.
Small Business Administration
2 Nationwide Plaza, Suite 1400
Columbus, Ohio 43215-2542
(614) 469-6860
FAX: (614) 469-2392
www.sba.gov
Pre-Qualified Loan Program Designed for Women, Veterans, Minorities & Exporters
The Pre-Qualification Loan Program is designed for individuals who are having difficulty obtaining financing.
Small businesses in Franklin, Delaware, Fairfield, Locking, Fayette, Madison, Muskingum, Perry, Pickaway and Union counties that are at least 51 percent owned by a woman, minority, or veteran in exporting or are a rural-based business, are eligible.
Loans are to be used for the acquisition of working capital, equipment, inventory, real estate acquisition, renovations and some refinancing of debt. The loan process is different than that of a traditional SBA-backed loan. Instead of going to a lender first, the small business person works through a SBA intermediary – a technical-assistance organization designated by SBA – to prepare a business plan and complete a loan pre-qualification application. The intermediary will charge a fee for its services. The application is then submitted to SBA. If the SBA determines it would guarantee the proposed loan, it issues a pre-qualification letter. The business person can then take the letter to lenders participating in SBA loans.
A “pre-guarantee” may be given by the SBA for a maximum loan of $250,000. No minimum loan request amount exists, however, $35,000 is considered a practical lower limit. Business plans, as well as past and present financial statements (or tax returns), will be required. Collateral consists of, at least, personal guarantees from al who own 20 percent or more of the business. Those with histories of bankruptcy or criminal conduct are ineligible. Loan maturity may be up to 25 years. Interest rates may be fixed or variable and average at prime plus 2 percent.
Small Business Administration
1 Nationwide Plaza, Suite 1400
Columbus, Ohio 43215-2542
(614) 469-6860
FAX: (614) 469-2391
www.sba.gov/financing/frprequal.html
SBA 504 Loan Program
This is a participation loan made in conjunction with a bank to an eligible small business. The loan provides long-term, fixed-rate financing for capital projects such as construction, the purchase of land and building, or purchase of large pieces of equipment. Often, a business can use the program to make a purchase with only a 10 percent down payment. The maximum loan size is $1 million, although the program can participate in projects of any size. Terms are 20 years on real estate and 10 years on machinery. Rates are determined in the bond market and are competitive with other commercial loan facilities. Personal guarantees from all major owners and a subordinate lien on the purchased asset are required. Administrative fees will be about 2.75 percent of the loan, plus a $1,000 application fee.
SBA 504 Loan Program
Community Capital Development Corp.
900 Michigan Ave.
Columbus, Ohio 43215
(614) 645-6171 or (888) 756-2232
FAX: (614) 469-2391
www.ccdcorp.org
Seasonal Line of Credit
Administered by the Small Business Administration, this credit line is designed to assist for-profit small businesses that have operated for at least 12 months and that need loans due to increased seasonal activity. This is a guarantee that covers up to 85 percent of loan amounts of $150,000 or less, and guarantees 75 percent of loan amounts greater than $150,000, with a maximum guarantee amount of $1 million. Collateral may consist of inventory and accounts receivable. Maximum interest rate is set at 2.25 percent above the lowest prime. There is a SBA guarantee fee based only on the guarantee amount. Loan proceeds may be used only for seasonal buildup. The loan may be from one season up to five-year maturity.
Small Business Administration
2 Nationwide Plaza, Suite 1400 Columbus, Ohio 43215-2542
(614) 469-6860
FAX: (614) 469-2391
www.sba.gov
Seed Capital Loan Program
This is a direct loan program for new and existing businesses located in Columbus’ Empowerment Zone. Loan proceeds may be used for equipment, refinancing debt, inventory and working capital. The maximum loan amount is $25,000. The fixed interest rate is four percent and a down payment may be required. The loan term is a maximum of five years. A personal guaranty, lien or mortgage of assets and cosigner may be required as collateral. There is a $25 application fee and a nominal fee to cover costs of processing and closing.
Community Capital Development Corp.
900 Michigan Ave.
Columbus, Ohio 43215
(614) 645-6439 or toll free (888) 756-2232
FAX: (614) 645-8588
www.ccdcorp.org
Small Business Investment Companies Program
This program makes equity funding available to all types of industries. To be eligible, the firm must meet the SBA’s definition of “small.” In general, the SBA defines small businesses as companies with a net work of $18 million or less and with average net (after tax) income from the preceding two years of not more than $6 million. SBICs provide equity capital, long-term loans, debt-equity investments and management assistance to qualifying small businesses. They also make venture capital investments with their own funds, plus funds obtained by borrowing at favorable rates with an SBA guaranty.
Small Business Administration
2 Nationwide Plaza, Suite 1400
Columbus, Ohio 43215-2542
(614) 469-6860
FAX: (614) 469-2391
www.sba.gov/financing
Minority and Women Financial Resources for Central Ohio/Columbus
Japanese Investment & Expansion
Japanese Investment & Expansion markets the greater Columbus area to Japanese companies interested in U.S. plant locations.
Japanese Investment & Expansion
Greater Columbus Chamber of Commerce
37 N. High St.
Columbus, Ohio 43215
(614) 225-6083
FAX: (614) 469-8250
Minority Enterprise Development: SBA 8(A)
The 8(a) Program is intended to be used exclusively for business development purposes to help small businesses owned and controlled by socially and economically disadvantaged individuals to compete on an equal basis in the mainstream of the American economy. This is the only program where the SBA staff works “hands on” to help develop a small business. The 8(a) relationship with a client can last up to nine years.
Recent changes in regulations are expected to result in increased levels of application and program participation-up to 50 percent more clients over the next two years. The 8(a) program is not for start-up businesses. A company must be in business for two years, waivers of this requirement are possible. To be eligible for the 8(a) program participation, a small business concern must be at east 51 percent owned, controlled and daily operated by one or more socially- and economically-disadvantaged persons. Black Americans, Native Americans, Hispanic Americans, Asian pacific Americans and Subcontinent Asian Americans have been predetermined to be socially disadvantaged. Individuals not a member of a presumed group must establish his/her social disadvantage on the basis of the “preponderance of the evidence.” In addition, the individuals upon whom eligibility is based must be a U.S. citizen.
Office of Minority Enterprise Development
Small Business Administration
2 Nationwide Plaza, Suite 1400
Columbus, Ohio 43215-2542
(614) 469-6860
FAX: (614) 469-2391
www.sba.gov
State of Ohio Financial Resources
General Financial Resources for Ohio
Linked Deposit Program
Administered by the Office of the Treasurer of the State of Ohio, this economic development program is designed to assist small businesses by offering loans with lower interest rates through a state portfolio investment into reduced rate investments (instruments). These are then linked to the above-mentioned loans, allowing financial organizations to lend at lower rates. Companies must have fewer than 150 employees at the time of application, be organized for profit, maintain existing facilities and offices in Ohio, exclusively, and have a majority of Ohio residents as employees. Limitations on funds are linked to the stipulation that one full-time job or its equivalent must be created or saved for every $25,000 in the project.
The borrower must submit an application projecting and documenting this job creation or saving. Collateral for the loan is dependent upon bank requirements. The interest rate reduction is directly linked to the equivalent match of state acceptance of reduced interest returns on certificates of deposits. The interest rate reduction is for two years; however, the loan term may vary. The linked deposits may be renewed after two years, if additional program requirements are met.
Ohio Treasurer of State
30 E. Broad St.
Columbus, Ohio 43215
(614) 466-2160 or (800) 228-1102
FAX: (614) 644-7313
www.state.oh.us/treasurer/
Ohio Bureau of Workers’ Compensation
The Ohio bureau of Workers’ Compensation, with a central office in Columbus and service offices located statewide, has provided injured workers or their families with medical and wage loss compensation for work-related injuries, diseases and deaths since 1913.
Ohio Bureau of Workers’ Compensation
30 W. Spring St.
Columbus, Ohio 43215-2256
(800) OHIOBWC
FAX: (877) 520—OHIO
www.ohiobwc.com
Ohio Enterprise Bond Fund
This program provides funding for land and building acquisition, construction, expansion or renovation and equipment purchase for commercial or industrial projects between $1.5 million and $10 million in size (long-term fixed rates for up to 20 years). Interest rate based on Standard & Poor’s A-minus rating for up to 90 percent of total project amount. Final approval must be received from the Development Finance Advisory Council and the State Controlling Board. Businesses must show repayment and management capabilities and must be able to document job creation or retention. Ohio prevailing wage rate applies. Benefits of the OEBF are long-term fixed rates for up to 90 percent of total project costs, access to national capital markets for unrated companies, and funding may not require third-party credit enhancement.
Ohio Department of Development
Economic Development Division
Office of Business Development
P.O. Box 1001, 77 S. High St., 28th Floor
Columbus, Ohio 43216-1001
(614) 466-4551
FAX: (614) 644-1789
www.odod.state.oh.us
Ohio Export Finance Initiative
Administered by the International Trade Division of the Ohio Department of Development, the Ohio Export Finance Initiative is a city/state partner with the Export-Import Bank of the United States. The OEFI markets and assists Ohio companies in participating in programs offered by the Ex-Im Bank, the U.S. Small Business Administration and other U.S. government agencies that provide financing for international ventures. OEFI assists Ohio companies in developing their foreign payment procedures and helps them investigate export financing alternatives to maximize their export sales and profits. This initiative also identifies export financing resources in both the public and private sectors and packages export working capital loan and guarantee applications.
Ohio Department of Development
International Trade Division
P.O. Box 1001, 77 S. High St., 29th Floor
Columbus, Ohio 43216-1001
(614) 466-5017
FAX: (614) 463-1540
www.exportohio.state.oh.us
Ohio Mini-Loan Guarantee Program
Administered by the Ohio Department of Development’s Division of Minority Business Affairs, the loan guarantee is designed to assist businesses with fewer than 25 employees and 50 percent of the total funds for this program are specifically set aside for minority and women-owned businesses. The funds may be used for the purchase of fixed assets, namely land, equipment, machinery and/or buildings. It may also be used for renovations, start-up costs and lease improvements. Loan guarantees range from $4,500 to a maximum of $95,000. All funds are provided through private lending institutions that are guaranteed by the state. Loan maturity is set at 10 years. Interest rate is set at 5.5 percent for the guaranteed portion of the loan. The non-guaranteed portion falls under the prevailing interest rate of the private lender. Collateral consists of a shared position on behalf of the state and lender on financed equipment, all new construction, renovated facilities and installed equipment and machinery. No fees exist.
Ohio Mini-Loan Guarantee Program
Ohio Department of Development
Division of Minority Affairs
P.O. Box 1001, 77 S. High St.
Columbus, Ohio 43216-1001
(614) 644-7708 or (800) 848-1300 ext. 4-7708
FAX: (614) 644-1789
www.connectohio.com
Ohio Statewide Development Corp.
The Ohio Statewide Development Corp. assists small businesses that need financing for land, building and equipment purchases or for new construction. OSDC works in partnership with area lenders to provide long-term, fixed-rate, low down-payment financing. OSDC can provide direct loans through the U.S. Small Business Administration 504 loan program and the Ohio Department of Development Regional 166 loan program. OSDC is a private, not-for-profit, 100 percent self-sufficient company funded by fees for services and interest earned on loans in its portfolio.
Ohio Statewide Development corp.
1335 Dublin Road, Suite 200A
Columbus, Ohio 43215
(614) 481-3214
www.ohiostatewidebusinessloans.com
Regional 166 Direct Loan
Twelve Certified Development Corps. Administer the Regional 166 Direct Loan program for businesses requesting assistance of $350,000 or less. The Regional Loan Agencies use the same guidelines as the 166 Direct Loan program and the program can lend approximately $35,000 per job. The State Controlling Board has final approval of all 166 Regional Loans.
Ohio Department of Development
Economic Development Division
Office of business Development
P.O. Box 1001, 77 S. High St., 28th Floor
Columbus, Ohio 43216-1001
(614) 466-4551
FAX” (614) 644-1789
www.odod.state.oh.us
Research and Development Tax Credit
Administered by the Ohio Department of Development, in conjunction with the Ohio Department of Taxation, this credit program is designed to provide exemption from the five percent sales tax and the 1.5 percent county tax on the purchase of qualified research and development equipment. Qualified equipment is defined by the state as capitalized tangible personal property and leased personal property that would be capitalized if purchased and used primarily to perform research and development.
Ohio Department of Development
P.O. Box 1001, 77 S. High St.
Columbus, Ohio 43216-1001
(614) 466-3086
FAX: (614) 644-1789
www.odod.state.oh.us
Revolving Loan Funds
Administered by the Office of Housing and Community Partnerships within the Ohio Department of Development, this program is designed to revitalize small cities through economic development projects. Companies apply for funds through community governments with a certified Revolving Loan Fund. Eligibility requirements include a project proposal that must create or retain jobs and must pass environmental review, with 51 percent of all jobs employing low-to moderate-income households. Funds may be used for capital acquisition and improvement related to the approved project. All Community Development Block Grant guidelines must be met for the project to be approved. Collateral is determined by the local community, and is usually accompanied by the personal guarantees of the borrower. Loans are provided at a low interest rate. Financing is local.
Revolving Loan Fund
Ohio Department of Development
Community Development Division
P.O. Box 1001, 77 S. High St
Columbus, Ohio 43216-1001
(614) 466-2285
FAX: (614) 752-4575
www.odod.state.oh.us
Work Opportunity Tax Credit and Welfare-to-Work Tax Credit
The Work Opportunity Tax Credit and Welfare-to-Work Tax Credit are federal income tax credits that encourage employers to hire from nine targeted groups of job seekers 9e.g. long-term welfare recipients, other welfare recipients, veterans, 18 to 24-year-olf food stamp recipients, SSI recipients, ex-felons, vocational rehabilitation referrals, 18 to 24-year-old EZ/EC residents, and 16- to 17-year-old EZ/EC residents).
Employers need only complete three easy forms to apply (an IRS 8850, ETA 9061 and accompanying documentation).
The Ohio Department of Job & Family Services is the designated agency responsible for administering the program. Employers must apply for a receive certification from the ODJFS, WOTC Unit.
The Welfare to Work Tax Credit, for new hires employed 400 or more hours or 180 days, is 35 percent of the first $10,000 of qualified wages for the first year of employment, For a maximum credit of $3,500 and 50 percent of the first $10,000 of qualified wages for the second year for a maximum credit of $5,000. Employers can claim up to $8,500 of combined tax savings per new hire.
For the WOTC Tax Credit, Employers may claim a credit of 40 percent of first year’s wages up to $6,000, for employees who work at least 400 hours, for a maximum credit of $2,400 per employee. Employees who work at least 120 hours, but less than 400 hours, will entitle the employer to a tax credit of 25 percent of qualified wages, with a maximum credit of $1,500. Summer Youth Employers may claim a credit of 40 percent of the first $3,000 in wages, with a maximum credit of $1,200.
The WOTC and WtW Tax Credit cannot both be claimed for the same individual in the same taxable year.
Ohio Department of Job and Family Services
Work Opportunity Tax Credit and Welfare-to