Growth Capital Corp. is a private nonprofit corporation formed for the purpose of reviewing and processing government assisted loan requests. The purpose of the Ohio Regional Loan Program is to make term financing for fixed assets available to small businesses in Ohio with lower, fixed interest rates and longer loan terms. At Growth Capital we work together with business owners and commercial loan officers to administer the Program.
Use of Funds
Fixed Asset Financing
- Land & Building Acquisition
- Purchase of Machinery & Equipment
- Building Improvements/Renovations
- New Construction
For Profit Businesses
- Manufacturing, Distribution, Wholesale and Commerce. In certain instances Service companies may qualify; Point of Sale businesses are not eligible.
- Job Creation Requirement of 1 New Job for each $50,000 of 166 funding up to $500,000.
- From 30-50% of Total Project Cost May be Financed by Ohio 166
- Minimum Equity Requirement of 10% of Total Project Cost
- 166 Loan Sizes from $25,000 to $500,000
- Interest rates are fixed at 2/3’s of the Current Prime Rate
- Interest rates can be as low as 3% in economically distressed communities including Cleveland, East Cleveland and Lorain
- 166 Loan Terms match the Bank Loan Term up to 20 years for Real Estate and up to 10 years for Machinery & Equipment
- Loans can be secured with a second mortgage or second lien position
- If secured with a subordinate lien, maximum 166 loan amount is 30% of the total project
- Participating Bank Term, Rate, and Fees are Negotiated betweenthe Customer and the Bank Loan Officer
Associated Costs and Terms
- Processing Fee of 1.5% of the 166 Loan Amount is due at Closing
- Application Fee of $350.00 is due to Growth Capital upon Processing
- Ongoing Servicing Fee of ¼% of the 166 Loan is added to the Interest Rate
- Ohio 166 Loan Closing and Legal Costs are the Responsibility of the Customer
- The Participating Bank must advance an interim loan for up to 90% to fund the 166 portion; Ohio 166 is “take-out” permanent, shared collateral financing
The primary advantages of the Ohio Regional 166 Loan Program are lower down payment, lower fixed interest rates and longer loan terms.
Please call Juan Hernandez or Jeff Sozio at (216) 592-2332 for more information.