Financial Speed Dating – 16 programs you may not know

I’m giving a presentation this morning to regional bankers on some of the lesser known economic development finance programs, and I thought it would make a great blog post, so I’m going to do it here. The idea is that this post (and the presentation for that matter) can’t cover the programs in-depth but only give a minute or two overview with some ways to get to know those programs better. So, without further ado, here are the slides from that presentation and comments (and links) on each below:   Large – $500K to $5M+

Flexible – $25K to $8.5M

  • PACE Financing – a relatively new program run in northwest Ohio by the Toledo-Lucas County Port Authority through SIEDC to provide $50K to $8.5M in financing toward upgrading existing buildings’ lighting, energy mgmt., HVAC, compressed air + other energy items. Unique thing – paid back by a tax assessment on the property.
  • Collateral Enhancement Program – although run by the Minority Business Development Division at ODSA, businesses do not need to be minority-owned to take advantage. State puts cash on deposit with participating lenders for small business growth projects to make up collateral shortfalls and pay back the bank in case of default. Eligible loans can range from $500K to $5M.
  • Millstream Angel Club – based in Findlay, MAC is a group of northwest Ohio angel investors who invest from $25K to $5M in a variety of companies, from pre-revenue to very established, tech to manufacturing. Seneca Co. companies should reach out to SIEDC as a first step to access these funds.

Medium – $250K to $750K

  • Rocket Ventures Fund – funded by private money and State ESP funds (now Pre-Seed Cap. funds), this early stage fund is run by northwest Ohio’s regional tech entrepreneurship center Rocket Ventures. It provides equity financing from $250K to $750K and has a preference for IT, medical, and alternative energy companies.
  • CoreNetwork Fund – CoreNetwork located in Toledo that is a private angel fund made up of OH and MI investors that will provide equity financing between $250K and $500K throughout the midwest and in any industry where there is real opportunity for growth and a strong return.
  • Regional 166 Loan – this state-funded program is administered by Community Development Corporations around the state (e.g., Ohio Statewide Development Corporation), which can lend up to $500K toward fixed assets for businesses with job creation and/or retention.
  • CDBG Economic Development Loan – this program, run the the Community Development Office at ODSA, can provide up to $500K in Community Development Block Grant funds to local entities to then lend to companies for fixed assets part of an economic development project.

Small – $0K to $450K

 

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