I’m giving a presentation this morning to regional bankers on some of the lesser known economic development finance programs, and I thought it would make a great blog post, so I’m going to do it here. The idea is that this post (and the presentation for that matter) can’t cover the programs in-depth but only give a minute or two overview with some ways to get to know those programs better. So, without further ado, here are the slides from that presentation and comments (and links) on each below: Large – $500K to $5M+
- Ohio Enterprise Bond Fund – JobsOhio can offer $2 to $10M in bond financing (using State’s AA+ rating) for fixed assets to land competitive economic development projects. Regional Growth Partnership in Toledo is the front door to access this program.
- 166 Direct Loan – Another JobsOhio program (via Regional Growth Partnership) offering $1 to $5M in state money for fixed assets to land competitive economic development projects.
- Targeted Investment Program – A Ohio Development Services Agency program funded by US Treasury money and run through the Tech Office (and approved by the Third Frontier Commission) which offers $500K to $5M to help companies is selected industries grow and expand (can do working capital.)
- JobsOhio Growth Fund – JobsOhio‘s private money loan fund which can provide $500K to $5M for economic development projects. Access is through RGP.
Flexible – $25K to $8.5M
- PACE Financing – a relatively new program run in northwest Ohio by the Toledo-Lucas County Port Authority through SIEDC to provide $50K to $8.5M in financing toward upgrading existing buildings’ lighting, energy mgmt., HVAC, compressed air + other energy items. Unique thing – paid back by a tax assessment on the property.
- Collateral Enhancement Program – although run by the Minority Business Development Division at ODSA, businesses do not need to be minority-owned to take advantage. State puts cash on deposit with participating lenders for small business growth projects to make up collateral shortfalls and pay back the bank in case of default. Eligible loans can range from $500K to $5M.
- Millstream Angel Club – based in Findlay, MAC is a group of northwest Ohio angel investors who invest from $25K to $5M in a variety of companies, from pre-revenue to very established, tech to manufacturing. Seneca Co. companies should reach out to SIEDC as a first step to access these funds.
Medium – $250K to $750K
- Rocket Ventures Fund – funded by private money and State ESP funds (now Pre-Seed Cap. funds), this early stage fund is run by northwest Ohio’s regional tech entrepreneurship center Rocket Ventures. It provides equity financing from $250K to $750K and has a preference for IT, medical, and alternative energy companies.
- CoreNetwork Fund – CoreNetwork located in Toledo that is a private angel fund made up of OH and MI investors that will provide equity financing between $250K and $500K throughout the midwest and in any industry where there is real opportunity for growth and a strong return.
- Regional 166 Loan – this state-funded program is administered by Community Development Corporations around the state (e.g., Ohio Statewide Development Corporation), which can lend up to $500K toward fixed assets for businesses with job creation and/or retention.
- CDBG Economic Development Loan – this program, run the the Community Development Office at ODSA, can provide up to $500K in Community Development Block Grant funds to local entities to then lend to companies for fixed assets part of an economic development project.
Small – $0K to $450K
- Minority Business Direct Loan – the State can directly lend from $45K to $450K to certified Minority Business Enterprises (MBEs) for fixed assets part of an economic development project at 3% fixed.
- Ohio Capital Access Program – the State can contribute from up to 50% of the amount of a small business bank loan up to $350K into a bank reserve, into which the borrower and lender also contribute. This reserve acts as loan portfolio insurance and mitigates risk for the lender.
- Seneca Co. Revolving Loan Fund – run by the local Regional Planning Commission, this program can provide up to $25,000 in gap financing toward fixed assets for each job created.
- Business Revolving Loan Fund – run by the WSOS Community Action Agency in Fremont, this program can provide up to $30,000 in gap financing for businesses with 50 or fewer employees for equipment, working capital, and minor facility renovation.
- Microenterprise Loan Fund – run by the WSOS Community Action Agency in Fremont, this program can provide up to $10,000 for new and existing businesses in Seneca County with 5 or fewer employees which will create jobs for low- to moderate-income (LMI) individuals.