The Ohio Development Services Agency (ODSA) offers a number of low interest loans and grants to entice business into the state of Ohio. There is the Ohio Enterprise Bond Fund, the 166 Direct Loan, the Pioneer Rural Loan, and the Rural Industrial Park Loan are a few of the most commonly used. Ohio Enterprise Bond Fund
The Ohio Enterprise Bond Fund is used when a project will induce a $1.5 million to $10 million investment in land and building acquisition, construction, renovation, and equipment purchases. The eligibility for this program is based on job creation and repayment and management capabilities, along with the use of Ohio prevailing wage. Up to 90% of the total project cost is eligible and the long-term fixed rates for up to 20 years will apply for commercial or industrial projects.
166 Direct Loan Program
The 166 Direct Loan program provides low interest loans for land and building acquisition, expansion or renovation, and equipment purchases. The amount they lend ranges from $350,000 - $1 million. You must have 10% equity and be in a “distressed” area as labeled by the state. To be eligible for this program you must retain one job for every $15,000 received and use prevailing wage on the site during project construction.
The Pioneer Rural Loan
The Pioneer Rural Loan also provides loans for land and building acquisition, new construction, renovation and expansion of existing buildings and acquisition of machinery and equipment for businesses locating or expanding in Ohio’s rural areas. The maximum loan amount is $750,000 and cannot exceed 75% of total fixed asset costs. Eligibility requires that the project creates or retains 1 job for every $35,000 of state investment during the first three years of the project.
Rural Industrial Park Loan
The Rural Industrial Park Loan provides direct loans and loan guarantees to applicants in “rural” or “distressed” communities who are dedicated to building a well-planned industrial park. This loan cannot exceed 75% of total eligible project costs and will not exceed the $1 million mark.