Business financing has been a hot topic the last few years. Here’s a program you may not have heard about.
The Ohio Treasury’s GrowNOW program could save you up to 3% interest on a new or existing loan for two years, with the opportunity for renewal. The program description states, “Small business owners must commit to the creation or retention of at least one full-time job or two part-time jobs in the State of Ohio for every $50,000 borrowed, up to $400,000.”
What types of loans are available?
– Loans can be used for business financing purposes such as debt refinancing, working capital or acquisitions.
– The loan must be a fixed-rate term loan. Note that the Treasury can’t fund reductions on lines of credit. However, if the bank agrees to “term out” a portion of the line of credit at a fixed rate, the Ohio Treasury can fund the reduction.
– Real estate loans are possible, as long as the loan is in the name of the operating entity or the small business owners themselves – not in the name of a holding company.
– Franchises may also be eligible in some situations.
– The program can be applied to more than one loan.
– The program can be applied in conjunction with other programs, such as SBA or Ohio Department of Development.
Qualifications – According to the Treasurer’s website, here is the criteria:
– Must have less than 150 employees
– Must have headquarters in Ohio
– Must maintain offices and operating facilities in Ohio
– Must have majority of employees be Ohio residents
– Must be organized for profit
– Must be able to save or create one full-time or two part-time jobs in Ohio for every $50,000 borrowed
Veterans receive approval preference and most area banks participate.
Impact Since January 2010
– 85 of 88 Ohio counties have participated
– 6,000 jobs have been impacted
– $150 million worth of small business loans have received rate reductions.
Information used in this article is summarized from the Ohio Treasurer’s website. Click here to learn more about this business financing program and apply. You can also contact the Department of Economic Development at 614-466-6546 or grownow@tos.ohio.gov with any questions.
Edward Livesay
