Management and Technical Assistance

A frequent obstacle to minority and small business expansion and growth is the lack of capital. The Office of Minority Business Financial Incentives administers loan and bond programs that promote the growth and establishment of minority and small enterprises in Ohio. OMFI administers the Capital Access Program, Minority Direct Loan Program, The Ohio Mini-Loan Guarantee Program and the Minority Business Bond Program. 

Capital Access Program
Encourages lending by establishing a unique loan "guarantee" reserve pool at the lending institution. The State, the lender and the borrower each make a small contribution into the pool. The reserve pool is available to the lender for recovery of any losses they may have for any loan that is enrolled in the Capital Access Program.  

Rate/Terms

• Determined by lender
• A program reserve account, in the name of the Director of the Ohio Department of Development, must be established at the participating lender.
• Borrower must contribute 1.5% - 3% of the principal amount.
• Lender must match borrower's contribution.
• Lender may recover all or part of its contribution from the borrower in any agreed upon manner.
• State contributes an amount equal to 10% of the principal amount of the capital access loan to be enrolled.

Benefits
Allows lenders to lend to businesses that they may otherwise have denied. 

Eligibility
Borrower must be a small business with annual sales of less than $10 million and have its principal place of business in Ohio.
Use of proceeds may include working capital or the purchase, or construction of fixed assets such as buildings and equipment.
Refinancing of other lenders' loans is also eligible. 

 Minority Direct Loan
Provides loans for the purchase or improvement of fixed assets for state-certified minority-owned businesses.
MBE Certification Application 

Rate/Terms

• Up to 40% of total project cost at 4.5% fixed for up to 15 years.
• Equity required

Benefits
Rate, term and availability.
Greater bank security. 

Eligibility

• Company must be at least 51% minority owned and controlled
• Must be a state-certified minority business
• Must show repayment ability and management capabilities.
• Must create one job for every $35,000 received
• Ohio prevailing wage rates apply for construction

Ohio Mini-Loan Guarantee Program
Provides loan guarantees for fixed assets for small business (start-up or existing business expansion) for projects of $100,000 or less. 

Rate/Terms

• Up to 45% guarantee of an eligible bank loan
• Interest rate on the state-guaranteed portion of the loan is currently 5.5%
• Maximum term of the guarantee in 10 years

Benefits

• Business development and/or growth
• Increased work force
• Low interest rates
• Increased bank security

Eligibility
Small businesses with fewer than 25 employees.
50% of guarantee funds are targeted to minority- or women-owned businesses. 

Minority Business Bonding Program
Provides bid, performance and payment bonds to state-certified minority businesses
- MBE Certification Application 

Rate/Terms
Maximum bond prequalification of up to $1 million per minority business. The bond premium for each bond issued is 2 percent of the face value of the bond. 

Benefits
Increases contracting opportunities. 

Eligibility
Must be a state-certified minority business that has been denied a bond by two surety companies within its current fiscal year. The project for which bonding is sought must be economically sound and increase employment opportunities. The minority business must not have defaulted on a previous bond issued by the state. 

Contact/Phone #
Office of Minority Business Financial Incentives
(614) 644-7708 or (800) 848-1300