Fund your business in Ohio

When your own money is not enough, Ohio’s options mostly work through lenders. A lender makes the loan, and a state or federal program can stand behind part of it. Two state loans go only to businesses certified as minority-owned or, for one of them, women-owned. Free advisors help you get ready to ask.

What’s different in Ohio

• State money reaches you through a lender. Ohio has up to $182 million in federal SSBCI money for the Collateral Enhancement Program 2.0, the Ohio Venture Fund, the CDFI Loan Participation Program and the SSBCI Technical Assistance Program, run by the Ohio Department of Development. For the CDFI loan participation program you apply through one of the participating CDFIs, not the state.
• The Micro-Loan needs certification. It is for businesses certified by the state as an MBE or WBE.
• Free help covers every county. The Ohio Small Business Development Centers (SBDC) serve 88 counties.

Do this

1. Write down what you need and what it is for. Equipment, inventory and rent are different asks, and programs are sorted by use.
2. Talk to a free advisor first. The Ohio Small Business Development Centers (SBDC) are free and funded by the U.S. Small Business Administration and the Ohio Department of Development, per the state’s starting a business page. The SBA’s Ohio district office in Columbus offers counseling too.
3. Understand who lends. Regular SBA loans come from participating lenders, not the SBA. The SBA loans guide explains who makes each kind.
4. Ask a participating CDFI about the loan participation program. You apply through one of the participating CDFIs, not the state. Under the CDFI Loan Participation Program, the maximum CDFI LPP amount is $1,000,000, with an interest rate of prime minus 0.25 percent at most. It is for Ohio-headquartered businesses with fewer than 250 employees and gross revenue of $20 million or less.
5. Look at the state’s own loans. The Micro-Loan runs $10,000 to $45,000, for businesses certified by the state as an MBE or WBE, with revenue in the most recent tax year of at least twice the loan amount. The Minority Business Direct Loan runs $45,000 to $1,000,000 and needs three consecutive years of revenue. It has a $300 application fee, plus a commitment fee, and asks for a personal guarantee from each owner of 20 percent or more. It requires State of Ohio MBE or Ohio Minority Supplier Development Council MBE certification.
6. Get certified if you qualify. The Ohio Department of Development, Minority Business Development Division handles certification through a Unified Application through the Ohio Business Gateway. Terms run up to two years, and certified businesses can compete for 15% of state agencies’ spending in a sheltered bidding process. See the MBE program page.
7. Check for a startup grant. We found no general statewide startup grant in the sources we could read.* Check with the Ohio Department of Development or an SBDC advisor. Ohio also received over $5.2 million for technical assistance under SSBCI, per the state’s SSBCI page.

What you get back

A loan offer from a lender, with rate, term and collateral. Any state participation is between the lender and the state. Your agreement is with the lender.