FINANCING & TAX CREDITS

Grant funding and tax credits are among the most sought after incentives of new and expanding businesses. JobsOhio and the local municipalities within Ottawa County have programs in place offering these benefits to encourage business growth. Funding decisions are based on a number of project factors, including but not limited to job creation, payroll figures, fixed-asset investment commitment, project location and project return on investment. OCIC has access to several different financing tools, which offer creative structures, competitive rates and terms, and compatibility with private lender programs.

Loan and Grant Programs

COMMUNITY DEVELOPMENT BLOCK GRANT

The Community Development Block Grant Program (CDBG) is designed to provide for the needs of low-to-moderate-income employees and underserved population of the community by assisting with economic development activities, neighborhood revitalization through capital improvements and emergency repair programs, and public service programs through local government and non-profit organizations. For more information on eligibility requirements and the application process, please contact the Ottawa County Regional Planning Commission.

REVOLVING LOAN FUND PROGRAM

The OCIC’s Revolving Loan Fund (RLF) Program is designed to assist business with gap financing projects that are considered to be high risk to lenders. Applicants must be a for-profit business and located within Ottawa County. For new business start-ups, a business plan with projections is required. The project must represent a significant economic development impact for the community. For more information about the RLF Program or to submit an application, please contact the OCIC.

SBA 504 LOANS

The SBA 504 Loan Program provides long-term, fixed rate financing of up to $5 million for major fixed assets that promote business growth and job creation. 504 loans are available through Certified Development Companies (CDCs), SBA’s community-based partners who regulate nonprofits and promote economic development within their communities. For more information or to find out if your business is eligible, please visit SBA 504 Loans.

JobsOhio Loan and Grant Programs

JO ECONOMIC DEVELOPMENT GRANT

The JobsOhio Economic Development Grant exists to promote economic development, business expansion and job creation by providing funding for eligible projects in the state of Ohio.

JO GROWTH FUND

The JobsOhio Growth Fund provides capital for expansion projects to companies that have limited access to funding from conventional, private sources of financing.

JO RESEARCH & DEVELOPMENT CENTER GRANT

The JobsOhio Research and Development Center Grant facilitates the creation of corporate R&D centers in Ohio to support the development and commercialization of emerging technologies and products.

JO REVITALIZATION PROGRAM

The JobsOhio Revitalization Program focuses on helping rejuvenate sites in preparation for end-users that support job creation opportunities for Ohioans.

JO INCLUSION GRANT

The JobsOhio Inclusion Grant exists to provide financial support for eligible projects in designated distressed communities and/or for businesses owned by underrepresented populations across the state.

JO WORKFORCE GRANT

The JobsOhio Workforce Grant promotes economic development, business expansion and job creation by providing funding to companies for employee development and training programs.

To explore these economic development incentives for your business, contact the Regional Growth Partnership (RGP), JobsOhio Network Partner.

State Loan and Grant Programs

166 DIRECT LOAN

The 166 Direct Loan gives eligible businesses loans for land and building acquisition, construction, expansion or renovation, and equipment purchases. The program provides low-interest loans up to 40 percent of the cost not to exceed $1.5 million.

RESEARCH & DEVELOPMENT INVESTMENT LOAN FUND

The Research and Development Investment Loan Fund provides loan financing ranging from $500,000 to $5 million for projects primarily engaging in R&D activity. The loans have fixed rates (at or below market rates) and other loan terms similar to those of commercial bank financing.

OHIO ENTERPRISE BOND FUND

The Ohio Enterprise Bond Fund offers 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.

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 help Ohio companies develop next-generation products and services within the state’s key industry sectors.

ROADWORK DEVELOPMENT (629) FUNDS

Roadwork Development (629) Funds are available for public roadway improvements, including engineering and design costs. Funds are accessible for projects that create or retain jobs and primarily involve manufacturing, technology, research and development, corporate headquarters and distribution activity.

State Tax Credits

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 creating at least 10 jobs (within three years) with a minimum annual payroll of $660,000 and that pay at least 150 percent of the federal minimum wage are eligible for the credit; however, they must apply for the credit before committing to a project.

DATA CENTER TAX ABATEMENT

The Data Center Tax Abatement provides a sales-tax exemption rate and term that allow for partial or full sales tax exemption on the purchase of eligible data center equipment. Projects must meet minimum investment and payroll thresholds to be eligible. Final approval of the tax exemption is contingent upon the approval of the Ohio Tax Credit Authority.

COMMUNITY REINVESTMENT AREA (CRA) PROGRAM

The Community Reinvestment Area (CRA) is a direct incentive tax exemption program benefiting property owners who renovate existing or construct new buildings. The local legislative authority with jurisdiction over the designated area determines the size, the number, as well as the term and extent of the real property exemptions. Local municipalities or counties can determine the type of development to be supported by the CRA Program by specifying the eligibility of residential, commercial and/or industrial projects. Local municipalities or counties can determine the type of development to be supported by the CRA Program by specifying the eligibility of residential, commercial and/or industrial projects.

ENTERPRISE ZONE PROGRAM

The Enterprise Zone Program is an economic development tool administered by municipal and county governments that provides real and personal property tax exemptions to businesses making investments in Ohio. Enterprise zones are designated areas of land in which businesses can receive tax incentives in the form of tax exemptions on eligible new investment. The Enterprise Zone Program can provide tax exemptions for a portion of the value of new real and personal property investment (when that personal property is still taxable) when the investment is made in conjunction with a project that includes job creation. Local communities may offer tax incentives for non-retail projects that are establishing or expanding operations in the State of Ohio.

For more information, please contact Director Chris Singerling.