Benefits of the Ohio 166 Program
Interest Rate
The biggest advantage to the "166" Loan Program is the incredible interest rate. The "166" interest rate is fixed at not more than 2/3 of the Prime Rate. "166" loans can provide 90% financing
The borrower must contribute at least 10% of the project cost in cash. HCDC can provide 40% of cost up to a $350,000 loan. A private lender provides the balance on a shared first lien basis.
No Prepayment Penalty
Business owners like the flexibility of having no penalty for the prepayment of the "166" loan.
Monthly payments are lower with "166" loans
Most business owners find it more valuable to take advantage of 166's low monthly payment. They keep their cash for working capital to grow their business and as a cushion against inflation. The Program offers up to a 15 year term on fixed asset financing, depending on the useful life of the assets financed.
The "166" Loan Program is flexible
The term is equal to or less than the term of the private lender, not more than 15 years. Business owners who feel certain that they will not need extra cash for working capital can choose a shorter term if desired.
HCDC Loan Officers make the process easy
HCDC was chosen by the State of Ohio to do the "166" paperwork for the borrower. Most business owners have found that the "166" paperwork is not much more than that required by banks - and HCDC makes it easy because we are the experts in doing these types of loans.
Eligible Areas
HCDC can administer the "166" Loan Program to small businesses throughout the State of Ohio.
