Business Financial Incentives

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Basic 7(a) Loan Guarantee (SBA)

    • Eligible for startups and existing small businesses.

    • This program helps qualified small businesses find financing when they are not eligible for normal lending.

    • Loan maturity is up to 10 years on working capital, and can be up to 25 years for fixed assets.

Certified Development Company, a 504 loan program (SBA)

    • Those eligible are small business needing "basic needs" financing.

    • This program provides long term, fixed rate financing to small businesses to purchase real estate or machinery and equipment for expansion or modernization.

    • Businesses must create or retain 1 job per $50,000 loaned by the SBA. Small manufacturers must create or retain 1 job per $100,000 or improve the economy of the area or achieve one or more public goal

Microloan, a 7(m) Loan Program (SBA)

    • Small businesses and non-profit child care centers needing small scale financing and technical assistance for startup or expansion are eligible for this program.

    • Provides short term loans up to $350,000 for working capital or the purchase of inventory, supplies, furniture, fixtures, machinery, and/or equipment.

    • Loans cannot be used to pay existing debt or to purchase real estate.

Business and Industry Guaranteed Loans (USDA)

 

    • Eligibility requirements: 1) provide employment; 2) improve economic/environmental climate; 3) promote conservation, development and use of water for aquaculture; 4) reduce reliance on non-renewable energy resources.

    • This program aims to improve the economic and environmental climate in rural areas.

    • The total amount of the loan is not to exceed $10 million. Maximum repayment time is not to exceed 30 years for real estate and 15 years for machinery and equipment.

Ohio Job Creation Tax Credit

 

    • A refundable state franchise or income tax credits for businesses that create full-time positions at an Ohio facility.

Rural Business Enterprise Grants (USDA)

    • This program is for rural public entities, Indian tribes, and rural private non-profit corporations.

    • It provides grants for projects that finance and bring development of small and emerging rural businesses that help to fund distance learning networks and employment related adult education programs.

    • Project must be discussed with USDA Rural Development State Office.

Rural Business Opportunity Grants (USDA)

    • Available to rural public bodies, rural non-profit corporations, rural Indian tribes, and co-ops with mainly rural members.

    • This program promotes sustainable economic development in rural areas mainly through training and technical assistance.

    • Project must be discussed with USDA Rural Development State Office.

Rural Economic Development Loan Grant (USDA)

    • Non-profit utility companies are eligible.

    • This program provides no interest loans to local utilities which, in turn, are passed on to local businesses for projects that create and keep employment in rural areas.

    • Maximum loan amount $300,000.

Section 9006 Grant Program (USDA)

    • Those eligible are farmers, ranchers, and rural small businesses who are able to prove financial need.

    • This grant provides assistance for purchasing and installing renewable energy systems and/or make energy efficiency improvements.

    • Grants are awarded on a competitive basis and can be for up to 25% of eligible cost.

Section 9006 Guaranteed Loan Program (USDA)

    • Must be an agriculture producer or rural small business to qualify.

    • Encourages commercial financing for renewable energy and energy efficiency projects.

    • Maximum loan is 50% of project cost with a minimum of $5000 per project and maximum of $10 million per project.

Ohio Enterprise Bond Fund (DSA)

    • For expanding businesses who are able to show repayment and management capabilities.

    • This program allows unrated companies access to national capital markets.

    • Must be discussed with Regional Economic Development Director.

Volume Cap Program (DSA)

    • Eligible for low-income home buyers, student loans, construction or improvement of certain types of manufacturing facilities, solid waste treatment equipment or pollution abatement facilities, or multi-family rental housing developments.

    • This program gives bond issuers the ability to finance projects at interest rates that are below conventional rates.

    • Must be discussed with the Regional Economic Development Director.

166 Direct Loan (DSA)

    • Available to businesses that create or retain 1 job for every $15,000.

    • Program provides loans for land and building acquisition, expansion or renovation and equipment purchases for eligible businesses.

    • Restricted to up to 30% of total eligible costs.

Regional 166 Direct Loan (DSA)

    • Eligible business must retain 1 job for every $35,000 received.

    • Program provides loans for land and building acquisition, construction, expansion or renovation, and equipment purchases for eligible businesses.

    • Restricted to up to 40% of total eligible costs.

Pioneer Rural Loan (DSA)

    • Eligible in areas with labor surplus and distressed counties. The program looks for projects that will create or retain at least 1 job for every $35,000 of state investment during the first 3 years of the project.

    • Provides loans for businesses locating or expanding in rural areas of Ohio. Business must demonstrate that they will create new jobs for people in Ohio rural areas. Loan may be used to buy land or buildings, for new construction, and renovation.

    • Maximum loan amount not to exceed $750,000.

Rural Industrial Park Loan (DSA)

    • Program is for non-profit organizations that promote development in rural areas. Local government units are eligible to apply for financing of off-site infrastructure improvements.

    • Provides direct loans and loan guarantees to rural, distressed local communities and other eligible applicants who are committed to well-planned industrial parks.

    • Maximum loan amount is the lesser of $1 million or 75% of total project cost.

Urban Redevelopment Loan

    • This loan is for distressed MSA Central Cities: Municipality or designated non-profit Economic Development Organizations.

    • This program removes development barriers from core urban property so that private sector jobs can be created.

    • Maximum loan amount is the lesser of $5 million or 40% of the total project cost.

Innovation Ohio Loan Program (DSA)

    • This is for leading technology companies who need financial resources for product commercialization.

    • The program funds the acquisition, construction, renovation, or improvement of facilities, and the acquisition and installation of equipment for innovation projects that create new products and services.

    • Maximum loan amount is 75% of qualifying cost of project.

Research and Development Investment Loan Fund Program (DSA)

    • Program is for projects where research is done for the purpose of discovering and developing new products or processes, techniques, formulas, or inventions.

    • Provides incentives for Ohio companies to make new investments in research and development activities.

    • Maximum annual tax credit is $150,000.

 

Below are websites to visit for additional information regarding Financial Incentives:

— U.S. Small Business Administration: www.sba.gov

— United States Department of Agriculture: www.rd.usda.gov

— Ohio Development Services Agency: development.ohio.gov

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