State Small Business Credit Initiative
Up to $182 million will soon be available to support small business in Ohio.
The Department of Development announced the funds are being awarded to Ohio as part of the federal State Small Business Credit Initiative.
The state will initially receive approximately $52.4 million to support socially and economically disadvantaged individuals, very small businesses, and early-stage, technology-based companies.
The remaining funds will be made available through multiple allocations as the state meets expected performance targets.
DOD will administer the program through the Minority Business Development Division and the Ohio Third Frontier, splitting the funding among four programs expected to be available by the end of the year:
- The Community Development Financial Institutions (CDFI) Loan Participation Program will provide loans to socially and economically disadvantaged individuals, very small businesses, and businesses located in CDFI tracts.
- The Ohio Collateral Enhancement Program will provide collateral on small business loans made by financial institutions to allow small businesses to access loans that otherwise would have been denied.
- The Ohio Venture Fund will provide capital to investment funds to invest in early-stage, tech-based companies.
- The Early-Stage Focus Fund will complement the existing Ohio Third Frontier Pre-Seed Fund to support funds that target investments to early-stage, tech-based companies in underserved communities and populations.
Additional details about the programs will be made available at Development.Ohio.gov.