Exploring Opportunity In The Ohio Regional 166 Direct Loan Program
Jun 22, 2023
The Ohio Regional 166 Direct Loan Program is a state-funded loan pool that provides low-interest loan financing assistance to businesses for the allowable costs of eligible projects within the state to promote economic development, business expansion, and job creation.
Program details:
- The program may finance up to 40% of an eligible project, with loans up to $1,000,000
- A minimum of 10% equity contribution is required from the borrower in the eligible project, however, a greater equity contribution may be required based on due diligence. The remaining eligible project shall be funded by the borrower either directly or indirectly through third-party investors and/or private lenders.
- Interest rates shall be fixed at or below local market rates at the time the loan is presented to Development for approval.
How can I use the loan?
- Land and/or building purchases – if the project involves the purchase of an existing building, the business must occupy at least 51 percent of the premises;
- Machinery & equipment purchases;
- Building construction and/or renovation costs – in case of construction, the business must occupy at least 60 percent of the premises;
- Long-term leasehold improvements;
- Ongoing fixed asset purchases; and
- Capitalizable costs directly related to a fixed-asset purchase.
Are there any associated costs?
Yes. There is a commitment fee equal to 1.25% % of the loan amount capped at $12,500 due to proceed with the loan closing and loan documentation process. Also, the annual servicing fee which is equal to 0.25% of the outstanding principal amount of the loan is pro-rated and payable monthly
Who can apply?
This program has been leveraged primarily by the following types of for-profit businesses:
- Manufacturing & Distribution
- Research & Development
- Owner-occupied commercial real estate
Next steps
Applications are accepted by the Program Administrators who perform preliminary investigations into the financing needs and the business seeking funding. Locally, the Toledo-Lucas County Port Authority serves as a Program Administrator. To inquire about the program, connect with Jason Bartschy, Director of Financing Programs at jbartschy@toledoport.org
For a complete list of program administrators, please visit the Ohio Department of Development website here.
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