On December 19, 2018, the Ohio Development Services Agency informed HCDC that its application as an Ohio 166 Regional Lender had been accepted. HCDC has been an Ohio 166 Regional Lender since 1990, and the renewal will allow HCDC to continue to serve the Ohio business community with Ohio 166 financing until December 31, 2020. HCDC is one of ten community development lenders in Ohio offering this loan program.
The Ohio Regional 166 Loan Program is an integral part of the State’s overall economic development strategy. The program promotes economic development, business expansion, and job creation and/or retention by providing financial assistance to eligible businesses in the form of low-interest loans to businesses creating new and/or retaining existing employment opportunities at a project site in the State.
Eligible projects include those related to industry, commerce, distribution, or research activities. Refinancing and retail projects are ineligible.
Allowable Costs/Uses Are:
1. Land and/or building purchase-if the project involves the purchase of an existing building, the business must occupy at least 51% of the premises
2. Machinery & equipment purchases
3. Building construction and/or renovation-in the case of construction, the business must occupy at least 60% of the premises
4. Long-term leasehold improvements
5. On-going fixed asset purchases
6. Capitalized costs directly related to fixed asset purchases
The Ohio 166 loan can be up to 40% of an eligible project, with loans up to $500,000. The minimum equity requirement is 10%. The remaining costs are funded directly by the borrower or indirectly through third-party investors and/or private lender. If there is no third-party financing, up to 75% of the project may be funded through the Ohio 166 loan with the remainder funded by borrower equity.
Other conditions apply to the Ohio 166 Regional Loan. For more information please contact HCDC at email@example.com or at 513-631-8292.