Programs - Frequently Asked Questions - OHIO 166

Growth Capital exists to assist the small business owner in obtaining government assisted financing to create an attractive long term, fixed rate-financing structure together with a participating bank.

DOES MY BUSINESS QUALIFY FOR THE OHIO 166 LOAN PROGRAM THROUGH GROWTH CAPITAL?

	Is my business located in Cuyahoga, Lake or Lorain county?
Answer:	If yes, Growth Capital is able to assist in your Ohio 166 financing needs. If not, call Growth Capital for a provider in your area
	Is the intended use of the 166 loan proceeds for fixed assets? This would include land and/or building purchases, building renovations, new construction or long-term capital equipment purchases.
Answer:	If yes, Growth Capital is able to assist in your financing needs. The Ohio Regional 166 program can only finance fixed assets. Under the 166 program, state prevailing wage rates must be paid on building renovation or construction projects. Inventory or working capital cannot be financed under this program.
	How do I determine if my business is considered a "small" business under the Ohio Regional 166 program guidelines?
Answer:	Any for profit business headquartered in Ohio may be eligible within the industry types of manufacturing, wholesaling, distribution, commerce, and in certain instances, service companies. Retail or any type of point of sale business does not qualify.
	Will this project create at least one new job for every $35,000 of Regional 166 funds?
Answer:	State 166 funds are to be used in projects that create or retain jobs. The job creation ratio is 1 new job for each $35,000 of Regional 166 funds. The ratio changes to 1 new job for each $15,000 of 166 funds from $350,000 to $1,000,000. Call Growth Capital for information.
	Will my business occupy more than 51% of the available space in an existing building or at least 67% of the available space in a newly constructed building?
Answer:	If yes, then Growth Capital is able to assist in your financing needs. State 166 funds are not to be used for speculative real estate investment. Real Estate must be owner occupied.
	Is my business able to secure long-term, fixed rate bank financing for 90% of my total project costs?
Answer:	If no, then the Ohio Regional 166 program may be your answer to financing up to 40% of your costs with 166 funds in conjunction with a bank loan for 50% of your financing needs. This structure can provide your business with 90% financing and therefore minimizing your down payment requirement to 10%. And remember, the interest rate on the 166 loan will be fixed for the loan term. Ohio Regional 166 loan terms can be up to 15 years for real estate and up to 10 years on equipment financing.

Please contact us should you have any questions related to the above topics or to further pursue your financing options.

We look forward to hearing from you.

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