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Government & Community Assistance to Obtain Money

Enterprise Bond Fund

Financial Resources For Northwest & West Central Ohio Entrepreneurs


Purpose of Program

To allow large and small creditworthy, but unrated businesses, access to the national capital markets at costs comparable to those of rated multi-national corporations. The Ohio Department of Development issues bonds, the proceeds of which are provided to businesses for eligible projects in the form of a loan. The Ohio Enterprise Bond Fund was created to provide long-term, fixed-rate, one-stop project financing for qualifying businesses that create or retain jobs in the state of Ohio.

Eligible Businesses

Eligible businesses include those engaged in, but not limited to, manufacturing, research and development, and distribution. Retail projects are ineligible for the Ohio Enterprise Bond Fund.

Eligible Use of Funds

Eligible Project Costs

• Purchase of land and/or building; if the project involves the purchase of an existing building, the business must occupy at least 51 percent of the premises

• Purchase of machinery and equipment • Building construction and/or renovation costs; if the project involves new construction, the business must occupy at least 75 percent of the premises

• Long-term leasehold improvements

• Purchase of ongoing business’ fixed assets

• Limited soft costs directly related to the fixed-asset purchase

• Refinancing is ineligible

Loan Amounts

Up to 90 percent of the total eligible project costs directly related to the fixed-asset purchase. The minimum loan amount is $1.5 million and the maximum loan amount is $10 million.The Ohio Department of Development requires the creation or retention of one job for each $75,000 of Ohio Enterprise Bond Fund proceeds within a three-year period to the State of Ohio. If the eligible project is located in a priority investment area, the job to dollar ratio shall be 1 to $100,000.

Repayment Term

The term of any loan awarded is conditioned upon the useful life of the financed assets, with the maximum limit up to 15 years for real estate and up to 10 years for machinery & equipment.

Interest Rates

The interest rate is fixed for the term of the loan and is determined at the time the bond is sold. For current rates, please contact the Ohio Department of Development staff.


A $1,500 non-refundable application fee is required upon filing a completed Financial Assistance Application.

• A $20,000 deposit is required upon signing the Ohio Department of Development’s term sheet. These funds will be applied to the project’s closing costs.

• Closing costs are estimated to equal two to three percent of the amount of the bond and are due at closing.

• An annual servicing fee equal to .25 percent of the outstanding principal balance of the loan will be assessed, pro-rated, and payable monthly.


Collateral, Security

The Ohio Department of Development will require a first priority mortgage and/or lien position on assets financed with Ohio Enterprise Bond Fund proceeds to be established via a multi-party agreement between the participating lender(s), the Ohio Department of Development, and the borrower. The following may be required: personal guarantees from owners with more than 20 percent ownership in the company, corporate guarantees from related companies, full or partial letter of credit, life insurance on key business owners and/or managers, and/or other types of credit enhancement, if necessary. Each borrower is required to fund a debt service reserve equal to 10 percent of the original bond amount. If the borrower defaults on the Ohio Enterprise Bond Fund loan, this reserve is forfeited and will be used by the Ohio Department of Development to make debt payments. The reserve can be funded with a letter of credit and/or cash.


Participation Requirements

Additional Considerations

The Ohio Department of Development requires a minimum of 10 percent equity. The equity requirement may be higher for start-ups and special purpose facilities.

Prepayment of any bond is subject to a make-whole premium, if applicable.

Ohio prevailing wage is required to be paid for construction, renovation, and installation of machinery and equipment. Rates and payment of prevailing wages are determined by the Ohio Department of Commerce’s Wage and Hour Bureau.

Program Funding Source

How to Apply

Contact the Ohio Department of Development staff to discuss the project. Submit a completed Financial Assistance Application. An eligibility review and credit analysis will be conducted by the Ohio Department of Development staff.

Links to Loan Application and/or Specific Information

Ohio Department of Development
Strategic Business Investment Division
Office of Financial Incentives
77 South High Street, 28th Floor
Columbus, Ohio 43215-6130

Useful Information

Interest Rate Links

Business Management Links

Glossary of Important Financial Terms You Should Understand

How To Prepare A Business Plan to Obtain Money

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