Business Incentives

Incentives for Your U.S. Investment: Northwest Ohio

Companies investing in the Northwest Ohio region already enjoy a business climate that, thanks to recent state reforms, has lowered tax burdens by eliminating taxes on inventory, corporate income and investments in equipment. These improvements have been recognized by CEOs in the most recent survey conducted by Chief Executive Magazine, which rated Ohio as the most improved state to do business in the U.S. An improved perception has also aided new business attraction efforts, which rank second nationally according to Site Selection Magazine. In addition to this welcoming business environment, companies looking to invest in Northwest Ohio can take advantage of several key incentives at the local, state and federal levels.

Paul Zito, vice president of International Development from the Regional Growth Partnership, can help you figure out which incentives best match your needs and growth plans here in the U.S., as well as discuss how they will directly impact your bottom line. Contact him at 1-419-252-2700 ext. 304/ zito@rgp.org. A list of incentives we offer is as below:

JobsOhio Growth Fund Loan:

Capital for expansion projects to companies that have limited access to capital and funding from conventional, private sources of financing.
Long Term Fixed Rate Loan
Interest Rates Based on Project Risk, Other Factors
Loans Typically from $500,000-$5,000,000
Term based useful life of allowable project costs/uses financed. Up to 15 years for real estate
Fees: Closing fees not to exceed $15,000
Deposit required
.25% annual service fee
Details

JobsOhio Economic Development Grant:

Requires a certain level of job creation in a specified period of time (typically three years)
Projects considered are those from companies engaged in JobsOhio’s targeted industries and business functions
Fixed Asset Financing
Term based on project’s completion date (typically three years)
Details

State of Ohio 166 Direct Loan Program:

Long Term Fixed Rate Loan
Low Interest Loan up to $1,500,000
Fixed Asset Financing: land, building, building construction/renovations, leasehold improvements, machinery & equipment
Term based on useful life of the assets being financed. Up to 15 years for real estate.
Fees: $1,500 application fee
Deposit required
.25% annual service fee (added to monthly amortization schedule)

State of Ohio 166 Regional Loan Program:

Long Term Fixed Rate Loan
3% Interest Loan up to $350,000
Fixed Asset Financing: land, building, building construction/renovations, leasehold improvements, machinery & equipment
Term based on useful life of the assets being financing. Up to 15 years for real estate.
Fees: $500 application fee
1.5% processing fee
Attorney fees due at closing
No prepayment fee

Ohio Enterprise Bond Fund:

Long Term Fixed Rate Bond
Rated AA- by S & P
Fixed Asset Financing: land, building, building construction/renovations, leasehold improvements, machinery & equipment
Up to 90% financing of eligible costs from $2,000,000 to $10,000,000
Term based on useful life of the assets being financed. Up to 15 years for real estate.
Fees: $1,500 application fee
$30,000 deposit required
Closing costs equal to 2-3% of the bond amount, due at closing
.25% annual service fee (added to monthly amortization schedule)

Northwest Ohio Bond Fund:

Long Term Fixed Rate Bond
Rated BBB by S & P
Fixed Asset Financing: land, building, building construction/renovations, leasehold improvements, machinery & equipment
Up to 90% financing of eligible costs from $1,000,000 to $8,000,000
Term based on useful life of the assets being financed. Up to 15 years for real estate.
Fees: $30,000 deposit required
Closing costs equal to 2-3% of the bond amount, due at closing
.50% annual service fee (added to monthly amortization schedule)

Stand Alone Bond Financing:

Variable Rate Bond Financing
Based on the credit of the borrower or other credit enhancement
No maximum limit on size of project

Jobs Creation Tax Credit:

Refundable tax credit for companies that:
Create at least 10 new full-time equivalent jobs
Create at least $660,000 in total new annual payroll
Must maintain commitments throughout term of tax credit
Tax credit measured as a percentage of the state income tax and is applied toward the commercial activity tax.
Must demonstrate that the tax credit is a “major factor” in the decision to expand or locate in Ohio.
Level of Tax Credit can be determined upon receiving information on number of jobs and new wages to be created.
Business must apply for the credit before committing to the project and be approved before hiring begins.

Rapid Outreach Grant:

Grant Program that was created to promote economic development, business expansion and job creation by funding infrastructure financing.
Funds are allotted each State fiscal year and are on a first come, first serve basis.

Ohio Workforce Guarantee:

Supports companies making a capital investment in facilities, equipment and training that result in the retention and creation of jobs in Ohio.
Provide direct support to employers for training, paying for a portion of instructor salaries, materials, and special needs.
Funds are allotted each State fiscal year and are on a first come, first serve basis.
Details

Roadwork Development 629 Account:

Provides roadwork improvement financing for eligible projects.
Up to 50% of eligible project costs associated with roadway improvements.
Grantees include, but are not limited to, those engaged in public roadwork improvements.
Grant amount to be determined on level of investment and project size.
Funds are allotted each State fiscal year and are on a first come, first serve basis.

Above Photo: Patrick Shepherd