Minority Business Development Division
The Ohio Capital Access Program (OCAP) is a loan portfolio insurance program (similar to a loan guarantee) that enables small businesses to obtain credit to help them grow and expand their businesses. Since 2002, the OCAP has assisted countless small businesses with their working capital and fixed asset financing needs. In OCAP, when a participating Lender originates a loan, the Lender and Borrower combine to contribute a percentage of the loan (from 3 percent to 6 percent) into a reserve fund, held by the Lender.
The Ohio Development Services Agency also sends a state contribution to the Lender-held reserve fund. Each Lender's total OCAP reserve fund is available to cover losses on any loan in the Lender's OCAP portfolio. OCAP loans are originated and serviced by the Lender. The Ohio Development Services Agency also uses funds from the State Small Business Credit Initiative (SSBCI) to make contributions to the reserve fund.
State Depository Lender
Yes, the OCAP percentage is 80 percent of the loan amount if the loan is to a minority-owned business certified with the State of Ohio Equal Opportunity Division.
Loans may be made with such interest rate, fees, and other terms and conditions as Lender and Borrower agree.
Yes, the Borrower must create or retain jobs as a result of the OCAP loan. There is no specific job to deposit ratio.
Interest rates, maturity, and other loan terms are negotiated between the Borrower and the Lender.
Lenders have responsibility for loan underwriting.
1. The State Small Business Credit Initiative is a program of the U.S. Department of the Treasury and the Small Business Jobs Act of 2010.
2. "Principal" is defined as "If a sole proprietorship, the proprietor; if a partnership, each managing partner and each partner who is a natural person and holds a 20 percent or more ownership interest in the partnership; and if a corporation, limited liability company, association or development company, each director, each of the five most highly compensated executives or officers of the entity, and each natural person who is a direct or indirect holder of 20 percent or more of the ownership stock or stock equivalent of the entity.