Are you a small to midsize business owner in Ohio? If so, you may want to check out the business loans offered to entrepreneurs like you through the Ohio state government, municipal governments throughout Ohio, and private lenders. Many of these loans boast low interest rates and other benefits, making them an intriguing choice for eligible business owners. Here’s an overview of some loan options specifically for Ohio-based businesses.
Statewide Business Loans in Ohio
To facilitate growth and innovation across Ohio, the Ohio state government offers loans to small and midsize businesses, with some of these loan programs focusing on women and minority-owned enterprises. If you’re an entrepreneur based anywhere in the state of Ohio, here are some statewide loans for you to consider.
GrowNOW
GrowNOW provides up to a 3% interest rate reduction on business loans for up to $400,000 over the course of two years. This benefit is renewable.
To apply for GrowNOW, you will first need to apply for a loan through an eligible institution listed on the website of the Ohio Treasurer. Once you’re approved for a loan through an eligible institution, you can submit an application for GrowNOW.
GrowNOW recipients must be for-profit businesses with headquarters in Ohio. They must operate the majority of their facilities in Ohio, have fewer than 150 employees, and the majority of their employees must live in Ohio. Additionally, GrowNOW recipients must commit to keeping at least one full-time or two part-time jobs in Ohio for every $50,000 they borrow.
Ohio Micro-Loan Program
For entrepreneurs looking for a small loan to fuel their business, micro loans can be an excellent choice. The Ohio Micro-Loan Program offers loans from $10,000 to $45,000 at 0% interest to qualifying borrowers.
Ohio Micro-Loan Program applicants must be certified through the Ohio Minority Business Development Division as an MBE (Minority Business Enterprise) or a WBE (Women Business Enterprise).
To apply for the Ohio Micro-Loan Program, you will need to complete a preliminary eligibility form. After you submit the form, you will be interviewed by a staff member of the Ohio Department of Development or you will be referred to a Minority Business Assistance Center for assistance with state certification.
Women’s Business Enterprise Loan Program
The Ohio state government offers loans ranging from $45,000 to $500,000 to women-owned enterprises that have their principal place of business and operations in Ohio. Interest rates for these loans are always at or below market rate. These loans must be repaid within 10 years for equipment and machinery. If a loan is used for owner-occupied real estate, it must be repaid within 15 years.
Ohio Minority Business Direct Loan Program
This program provides fixed, low-interest loans to certified minority-owned businesses in Ohio. The minimum direct loan amount is $45,000, while the maximum amount is generally set at 75% of the cost of the project that the loan is financing. Borrowers can use these loans to purchase or improve fixed assets that will create jobs for residents of Ohio.
To be eligible, your business must be minority-owned and have its principal place of business and operations in Ohio. You must also demonstrate that the project being financed by this loan will create or retain jobs for Ohio residents.
Recipients of this loan must first complete their project with interim financing from a conventional lender as well as their own equity. Upon project completion, recipients will receive their funds from the state of Ohio.
Community Development Financial Institution Loan Participation Program
The Community Development Financial Institution Loan Participation Program aims to provide loans to socially and economically disadvantaged individuals and small businesses. To pursue one of these loans, you will need to apply at one of the approved Community Development Financial Institutions (CDFIs).
Borrowers need to meet a variety of eligibility requirements, such as being a registered business with the Ohio Secretary of State, having headquarters in Ohio, and having fewer than 250 employees.
The maximum loan amount is $1,000,000, while the maximum loan length is 10 years and the maximum interest rate is the prime rate minus 0.25%.
Regional 166 Direct Loan
The Regional 166 Direct Loan Program provides low interest loans to businesses that may have limited access to capital from private sources. The purpose of this program is to promote economic development, business expansion, and job creation and retention in Ohio.
Loans offered through this program can finance up to 40% of an eligible project, with the maximum loan amount being $1,000,000. In some situations, a loan offered through this program can fund up to 75% of an eligible project.
To apply for this loan program, you will have to contact a local Regional 166 Direct Loan Program Administrator. If you are approved for this loan, you will be required to use interim financing to complete your project. Upon project completion, you will receive your Regional 166 Direct Loan.
Loans from Municipal Governments in Ohio
In addition to statewide lending, Ohio-based businesses can receive loans from their local government. To learn more about any business funding opportunities offered by your municipal government, you can check the business section of your municipal government’s website. Here is some information on business loans offered by select municipal governments in Ohio.
Cuyahoga County Business Growth Lending Program
Established businesses in Cuyahoga County can apply for fixed-term loans through the Cuyahoga County Department of Development. The purpose of this program is to help Cuyahoga County businesses maximize their growth and create jobs for Cuyahoga County residents.
Columbus-Franklin County Finance Authority Small Business Loans
To help businesses purchase real estate, construct or renovate property, and purchase machinery and equipment, the Columbus-Franklin County Finance Authority offers low-interest loans.To be eligible, you must have a small business located in a qualifying location.
Cincinnati MicroCity Loan
Businesses based in Cincinnati can receive loans of up to $35,000 from the government of the City of Cincinnati. To be eligible for this loan, you must have a for-profit business with five or fewer employees. The owner can be one of the employees. Your business must also have adequate historical or projected cash flow.
Loans from the Private Sector
The government isn’t the only place where you can get business loans in Ohio. Many private online lenders have flexible requirements and offer quick access to funding. Traditional banks and credit unions also offer business loans. Additionally, you can look into peer-to-peer lending platforms.
Frequently Asked Questions (FAQs)
Here are answers to some common questions about getting a business loan in Ohio.
Does my business have to be woman or minority-owned to be eligible for government loans in Ohio?
No. Not all government-funded loan programs are specifically for women and minority-owned businesses. There are loan programs intended for nearly any type of small business that will contribute positively to the state and create jobs.
How Can I Increase My Chances of Getting A Loan?
Be prepared to show detailed information about your business’s operations and finances. You should also be prepared to show how you will use the funds, and how this particular use of funding will positively impact your business and the state of Ohio.
What Is the Fastest Way to Get a Business Loan?
To minimize risk, lenders will complete their due diligence and other required tasks before approving your loan application and sending you the money. This can be frustrating for business owners who want to receive funding instantly.
Though government agencies offer many favorable, low-interest loans, business owners who need immediate financing may want to explore lenders from the private sector–especially online lenders. These institutions may be able to move the process along faster.
What’s The Difference Between a Loan, Grant, and Line of Credit?
Loans, grants, and lines of credit are common ways to finance a business. Loans must be repaid by a certain date and have interest rates and amortization schedules. Unlike loans, grants do not need to be repaid. With a line of credit, you can access working capital for your business when you need it and then repay the borrowed amount by the due date. If you don’t repay the borrowed amount by the due date, you will accrue interest.
We Can Help You Get Business Loans in Ohio
If you’re looking for business loans in Ohio, we’re here to help. At BusinessLoans.com, we use proprietary technology to match you with the right business lending partners. We are experienced in helping entrepreneurs obtain the financing they need, and we maintain and nurture a vast network of lending professionals. If you’re ready to get a business loan in Ohio, start your application with us today so we can connect you with the right opportunities.
