Ohio Regional 166 Loan

Designed to Help Businesses Grow
The Ohio Regional “166″ Loan Program assists growing businesses in acquiring machinery, equipment and real estate through a partnership between business owners, conventional bank financing and HCDC.

The Benefits
The Ohio Regional 166 Loan is an attractive, fixed-interest rate loan with a lower down payment. The Program offers up to a 15-year term for real estate and up to a 7-year term for machinery and equipment (unless appraised for a longer life). Monthly payments are lower, so businesses can keep their cash for working capital. There is NO prepayment penalty. With over 20 years of experience with the Ohio Regional 166 Loan Program, HCDC’s team of experts will make the process simple for businesses and lending partners.

How Does It Work?
HCDC has been selected by the Ohio Development Services Agency to offer Ohio Regional 166 Loans throughout Ohio. The borrower must contribute at least 10% of the project cost in cash. HCDC provides up to 40% of the project cost up to a $500,000 loan. A private lender provides the balance on a shared first lien basis.

Example – $500,000 Project

Amount Percent Source Security
$250,000 50% Bank, S&L Shared 1st Lien
$200,000 40% HCDC Shared 1st Lien
$50,000 10% Owner Equity
$500,000 100% Total

Who Is Eligible?
The Ohio Regional 166 Loan Program is available to the following types of small business located in the State of Ohio:

  • Manufacturers
  • Distributors
  • Other industrial (retail businesses are ineligible)

What Is Eligible?

  • Land/building acquisition
  • New construction or renovation/expansion
  • Machinery and equipment
  • “Soft” costs for appraisals, general surveying, architectural work and installation

Associated Costs and Terms

  • Owner-occupied commercial real estate. For new construction, the operating company must occupy at least 75% of the building; for purchase of an existing building, the operating company must occupy at least 51% of the building.
  • Business owners may own the building and lease to the company.
  • Job creation/retention requirements apply ($50,000/job) during the first three years of the project. If job wages are over 400% of minimum wage, then $75,000/job investment applies.
  • Personal guarantees from each owner with more than 20% ownership is required
  • Refinancing of an existing obligation is ineligible.
  • Inventory and working capital financing is ineligible.
  • Loan may be prepaid. There is NO prepayment penalty.

HCDC Experts Make the Process Simple

  • HCDC will handle all the application paperwork, processing and review required by the State of Ohio.
  • A $400.00 non-refundable application fee is required at the time of submission to HCDC and a 1.5% processing fee will be assessed at closing.
  • A deposit of approximately $500 – $2,000 (depending on type and amount of loan) for out-of-pocket costs is required at the time of HCDC loan approval.

Contact us today!
Lock in low rates with the Ohio Regional 166 Loan Program by calling our loan experts at 513-631-8292.