Ohio’s competitive and profitable environment makes it easier for startups and established companies to land here with solid financial footing. We’ve cultivated a unique business climate that brings together a full range of benefits from a diverse set of productive industries to low-cost access to your customers and supply chain. Funding programs such as low-interest loans, tax incentives and venture capital that align perfectly with an expanding company’s financial needs.
Ohio is led by a business-minded governor focused on cultivating a robust economic climate that begins with having the lowest tax rate in the Midwest on new capital investment and amplified by a common sense regulatory approach so businesses can thrive. That environment has helped lead to Ohio businesses creating the most jobs in the Midwest over the past two years.
JOBSOHIO LOAN AND GRANT PROGRAMS
JobsOhio Growth Fund
The JobsOhio Growth Fund provides capital for expansion projects to companies that have limited access to capital and funding from conventional, private sources of financing. JobsOhio will consider loans to companies that are in the growth, established or expansion stage, and that have generated revenues through a proven business plan.
The JobsOhio Growth Fund’s loan decisions are based on a number of project factors, including but not limited to job creation, additional payroll, fixed-asset investment commitment, project return on investment, and project location.
JobsOhio Workforce Grant
The JobsOhio Workforce Grant was created to promote economic development, business expansion, and job creation by providing funding for the improvement of worker skills and abilities in the State of Ohio. Grant decisions are based on a number of project factors, including but not limited to job creation, additional payroll, fixed-asset investment commitment, project return on investment, and project location.
JobsOhio Economic Development Grant
The JobsOhio Economic Development Grant was created to promote economic development, business expansion, and job creation by providing funding for eligible projects in the State of Ohio. Grant decisions are based on a number of project factors, including but not limited to job creation, additional payroll, fixed-asset investment commitment, project return on investment, and project location.
State Tax Credits And Abatements
Job Creation Tax Credit
The Job Creation Tax Credit is a refundable tax credit to companies generally creating at least 10 new jobs (within three years) with a minimum annual payroll of $660,000 that pay at least 150percent of the federal minimum wage. The tax credit is measured as a percentage of the state income tax withholdings for all new employees hired under the program, and is applied toward the company’s commercial activity tax liability. Should the amount of the credit exceed the company’s commercial activity tax liability for any given year, the difference is refunded. A business must apply for the credit before committing to the project. Applicants must be approved through the Ohio Tax Credit Authority before hiring begins.
Ohio Enterprise Zone Program
The Ohio Enterprise Zone Program provides real property tax incentives for businesses that expand or relocate in Ohio. To establish an Enterprise Zone, a municipality or county must apply to the Director of Development for certification. To secure benefits, businesses must apply to the local community. Certain qualifying businesses may be eligible for additional benefits.
Community Reinvestment Areas
The Community Reinvestment Areas provide companies locating in a designated Community Reinvestment Area an exemption of up to 100 percent of improvement value for up to 15 years on real property taxes. To be eligible, a company must make an agreement with the local community prior to going forward with the qualifying project.
Research and Development Investment Loan
The Research and Development Investment Loan Fund provides loan financing between $500,000 and $5 million for projects primarily engaging in research and development activity. Rates are fixed (at- or below-market rates) with other loan terms similar to those of commercial bank financing. Companies receive a dollar-for-dollar, non- refundable Ohio commercial activity tax credit for principal and interest payments made during the year up to $150,000 during the loan term.
Research and Development Investment Tax Credit
The Research and Development Investment Tax Credit provides a non-refundable tax credit up to seven percent for qualified research and development expenses. Qualifying expenses fit into two categories: in-house research expenses, and contracted research expenses. Any unused portion of a tax credit may be carried forward for up to seven years.
Ohio Enterprise Bond Fund
The Ohio Enterprise Bond Fund provides revenue bond financing through an S&P rated fund, whereby proceeds from the sale of bonds are loaned to companies for fixed-rate, long-term capital asset financing. Rates are market-driven and fixed prior to funding. Loan terms range between 7 to 10 years for equipment and 15 to 20 years for real estate. Up to $10 million in financing is available through the program.
166 Direct Loan
The 166 Direct Loan provides loans for land and building acquisition, construction, expansion, or renovation, and equipment purchases for eligible businesses. The program provides low-interest loans up to 40 percent not to exceed $1.5 million.
Regional 166 Direct Loan
The Regional 166 Direct Loan provides loans for land and building acquisition, construction, expansion, or renovation, and equipment purchases for eligible businesses. Regional economic development agencies administer the program. It provides low-interest loans up to 75 percent collateral value, not to exceed $500,000.
Innovation Ohio Loan Fund
The Innovation Ohio Loan Fund provides loans for acquisition, construction, and related capital costs of technology, facilities, and equipment purchases. The fund was created to assist existing Ohio companies in developing next-generation products and services within the state’s Industry Sectors up to 75 percent ranging from $500,000 to $1.5 million.
Roadwork Development (629)
Roadwork Development (629) funds are available for public roadway improvements, including engineering and design costs. Funds are available for projects primarily involving manufacturing, research and development, high technology, corporate headquarters, and distribution activity. Projects must create or retain jobs. Grants are reimbursable and provided to a local jurisdiction and require local participation.
Clean Ohio Revitalization Fund
The Clean Ohio Revitalization Fund is a key financial component to helping a community build economic capacity by providing funding for brownfield redevelopment. Brownfield redevelopment allows a community to reclaim and improve its lands, making property viable for new development. Grants are made through a competitive process that includes local evaluation.
Brownfield Revolving Loan Fund
The Brownfield Revolving Loan Fund, Ohio offers this program that offers below market rate loans to assist with the remediation of a brownfield property to return the property to a productive economic use in the community.
Volume Cap provides a federal tax benefit by allowing eligible issuers to issue tax exempt Private Activity Bonds up to a state limit known as the “Volume Cap.” The State of Ohio’s allocation of Volume Cap is determined annually by the Internal Revenue Service on a per capita basis, and may be used for projects consisting of multi-family housing, single-family housing, exempt facilities, manufacturing, and student loan bonds.
State Economic Development Programs
- Ohio Third Frontier
- Technology Investment Tax Credit Program
- Invest Ohio Program
- Site Selection Assistance
- Edison Technology
- Edison Technology Incubators
- The Ohio Venture Capital Authority (OVCA)
- Ohio Business Gateway
- Appalachian Training Investment Partnership Program
- Appalachian Regional
- Regional Initiative Program
- Appalachian Regional Commission’s Federal Access Road Program
- Governor’s Office of Appalachia Rapid Response Fund
- Ohio Incumbent Workforce Training Voucher Program
For all programs related to community development, small business, and minority business please reference the DSA’s website