166 Direct Loan & SBA 504
Direct loan financing is available to help finance manufacturing facilities, with eligible uses for funding including new building construction, building acquisition, and acquisition of machinery and equipment. Amounts of financing are usually set at 30 percent of the project cost to a maximum of $1 million, subject to an increase by the Director of Development, with a minimum loan amount of $350,000. The rate is fixed (currently at 3 percent), with terms similar to those of commercial bank financing. Eligible projects must involve significant job creation or retention.
166 Direct Loan Fact Sheet
SBA 504 Loan Fact Sheet
Ohio Enterprise Bond Fund (OEBF)
The Ohio Enterprise Bond Fund (OEBF), rated AA- by Standard & Poor's, allows large and small credit worthy, but unrated businesses access to the national capital markets. Through the OEBF, the Ohio Department of Development (ODOD) issues bonds, the proceeds of which are provided to businesses for eligible projects in the form of a loan. The OEBF was created to provide long-term, fixed-rate, one-stop project financing for qualifying businesses that create or retain jobs in the state of Ohio. The OEBF enables large and small creditworthy businesses access to capital at costs comparable to those of rated multi-national corporations. Eligible businesses include those engaged in, but not limited to, manufacturing, research and development and distribution. Retail projects are ineligible for the OEBF.
Ohio Enterprise Bond Fund