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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