FINANCING

A variety of loan programs exist to help finance small business expansions. Most loans will not replace banks, but merely reduce the risk the banks incur or fill a gap between the credit available and the credit needed. Government loan programs still require a "bankable" deal so credit restrictions will apply. The list below includes some of the most commonly used small business loan programs.

 
Conduit Financing

Southeastern Ohio Port Authority (SeOPA) can issue bonds on behalf of a borrower for the purpose of making the proceeds available to the borrower for certain projects.  SeOPA works in partnership with traditional lending institutions and its public partners to provide the most advantageous financing for a project. Read more

Tax Abatements

This application is for new construction, expansion, or renovation projects. The benefit is the abatement of property taxes. Read More

Property Assessed Clean Energy Financing

Property Assessed Clean Energy (“PACE”) financing presents a way to finance energy-efficiency, renewable-energy, and water conservation upgrades to buildings.  PACE can pay for new heating and cooling systems, lighting improvements, solar panels, water pumps, insulation, and more for almost any property – homes, commercial, industrial, non-profit and agricultural.  Read More

Tax Increment Financing

Tax Increment Financing (“TIF”) is a mechanism to use the future increase in property taxes to finance part of the cost of the improvement that will generate the increased taxes.  Read More

Research & Development Investment Loan

The Research and Development Investment Loan Fund provides loan financing between $500,000 and $5 million for projects primarily engaging in research and development activity. Rates are fixed (at- or below-market rates) with other loan terms similar to those of commercial bank financing. Companies receive a dollar-for-dollar, non- refundable Ohio commercial activity tax credit for principal and interest payments made during the year up to $150,000 during the loan term. https://development.ohio.gov/summary_68researchloan.htmhttps://development.ohio.gov/summary_68researchloan.htm

Research & Development Investment Tax Credit

The Research and Development Investment Tax Credit provides a non-refundable tax credit up to seven percent for qualified research and development expenses. Qualifying expenses fit into two categories: in-house research expenses, and contracted research expenses. Any unused portion of a tax credit may be carried forward for up to seven years.https://development.ohio.gov/bs/bs_rditcredit.htmhttps://development.ohio.gov/bs/bs_rditcredit.htm

Ohio Enterprise Bond Fund

The Ohio Enterprise Bond Fund provides revenue bond financing through an S&P rated fund, whereby proceeds from the sale of bonds are loaned to companies for fixed-rate, long-term capital asset financing. Rates are market-driven and fixed prior to funding. Loan terms range between 7 to 10 years for equipment and 15 to 20 years for real estate. Up to $10 million in financing is available through the program. http://jobs-ohio.com/site/assets/files/1130/ohio_ent_bond_fund.pdf

166 Direct Loan

The 166 Direct Loan provides loans for land and building acquisition, construction, expansion, or renovation, and equipment purchases for eligible businesses. The program provides low-interest loans up to 40 percent not to exceed $1.5 million. http://jobs-ohio.com/site/assets/files/1129/166_direct_loan.pdf

Regional 166 Direct Loan

The Regional 166 Direct Loan provides loans for land and building acquisition, construction, expansion, or renovation, and equipment purchases for eligible businesses. Regional economic development agencies administer the program. It provides low-interest loans up to 75 percent collateral value, not to exceed $500,000.http://jobs-ohio.com/site/assets/files/1129/166_direct_loan.pdf

Innovation Ohio Loan Fund

The Innovation Ohio Loan Fund provides loans for acquisition, construction, and related capital costs of technology, facilities, and equipment purchases. The fund was created to assist existing Ohio companies in developing next-generation products and services within the state’s Industry Sectors up to 75 percent ranging from $500,000 to $1.5 million. http://jobs-ohio.com/site/assets/files/1132/innovation_ohio_loan_fund.pdf

Roadwork Development (629) 

Roadwork Development (629) funds are available for public roadway improvements, including engineering and design costs. Funds are available for projects primarily involving manufacturing, research and development, high technology, corporate headquarters, and distribution activity. Projects must create or retain jobs. Grants are reimbursable and provided to a local jurisdiction. Local financial participation is required. https://development.ohio.gov/cs/cs_r629.htm

Structured Lease 

The Southeastern Ohio Port Authority enjoys an exemption from sales tax on building and construction materials that are incorporated into its facilities.  By entering into a structured lease transaction with a company, the Port Authority can pass that exemption on to the company. Read More

Job Creation Tax Credit 
The Job Creation Tax Credit is a refundable and performance based tax credit calculated as a percent of created payroll and applied toward the company's commercial activity tax liability. Should the amount of the credit exceed the company's commercial activity tax liability for any given year, the difference is refunded.  Companies generally creating at least 10 new jobs (within three years) with a minimum annual payroll of $660,000 that pay at least 150% of the federal minimum wage are eligible for the credit; however, must apply for the credit before committing to its’ competitive project.  Applicants must be approved through the Ohio Tax Credit Authority before hiring begins.

Other Assistance Programs 

Application: Determined by JobsOhio, Ohio Development Services Agency or Buckeye Hills Benefit: Assist with relocation or expansion costs; Buckeye Hills may assist with start-up costs. Read More


To learn more about incentives and assistance programs that can reduce costs to locate or expand in Washington County, contact the Port Authority at (740) 568-1958.