Incentives Eligibility & Requirements

Research & Development Investment Loan Fund

The Research and Development Investment Loan (R&D Loan) provides low-interest loans partnered with a tax credit to Ohio businesses that create research and development capabilities and high-wage jobs.

Businesses meeting the program requirements (i.e. job commitments, loan repayments, etc.) are also eligible for a loan repayment tax credit against their Ohio Commercial Activity Tax liability. The credits are equal to the amount of principal and interest repaid on the loan up to a maximum annual credit of $150,000. The credit is non-refundable, and any unused credits may be carried forward until expended.

Available Funding

The program may finance allowable project costs with R&D Loans typically ranging in size from $500,000 to $5,000,000. The amount of R&D Loan will take into account additional financing offered through other State loan programs total financing from State programs should typically range from 20% to 40% of the project investment.

Job Creation

The program requires a commitment to create jobs to the State of Ohio through the R&D Loan program. The number of jobs committed, as well as the annual payroll will be considered when determining the funding amount.

Eligible Projects

Eligible projects include those where research and development activities are undertaken for the purpose of discovering information that is technological in nature and the application of which is intended to be useful in the commercialization of a new or improved product, process, technique, formula, or invention. It is expected that project employment will be comprised of a significant representation of scientists, researchers, and technicians. Retail projects are ineligible for the R&D Loan. Refinancing is ineligible.

Allowable Project Costs/Uses

Eligible project costs include the following types of investments, which are being used for research and development activities:

• Land and/or building purchase if the project involves the purchase of an existing building, the business must occupy at least 51% of the premises

• Machinery & equipment purchase

• Building construction and/or renovation costs if the project involves new construction the business must occupy at least 60% of the premises

• Long-term leasehold improvements

• Capitalizable costs directly related to a fixed-asset purchase

Term

The R&D Loan term is based upon the useful life of the allowable project costs/uses financed. The term for real estate is up to 15 years and the term for machinery and equipment is up to 10 years.

Interest Rate

The R&D Loan interest rate is fixed at closing.

Applicant Contribution

Development requires a 10% minimum equity contribution in the allowable project costs/uses. The required contribution may be higher depending on the company’s financial and operating position and the project’s characteristics. At least 50% of the allowable project costs must be funded by the borrower either directly or indirectly through third party investors and/or lenders.

Security & Collateral

Development requires a first and/or shared priority mortgage and/or lien position on assets financed with R&D Loan proceeds. Development may consider a shared position with participating third-party lenders this position is established via a multi-party agreement between the participating lender(s), Development, and the borrower. Development may require the following additional collateral or credit enhancements:

• Personal guarantees from owners of the company

• Corporate guarantees from related companies

• Full or partial letter of credit

• Life insurance on key business owners and/or managers

• Other types of credit enhancement, if necessary

Disbursement of R&D Loan Proceeds

The R&D Loans are “take-out” financing. Allowable project costs/uses must be purchased with interim financing with the R&D Loan disbursing upon project completion.

Program Fees

• Commitment fee equal to 1% of the loan amount capped at $10,000 is due to proceed with the loan closing and loan documentation process.

• Annual servicing fee equal to 0.25% of the outstanding principal amount of the loan is pro-rated and payable monthly

Pre-payment

The program does not impose a pre-payment penalty.

166 Direct Loan Program Details

The 166 Direct Loan Program (166 Direct Loan) provides capital for expansion projects to companies that have limited access to capital and funding from conventional, private sources of financing.

Priority may be given to eligible projects based on job creation and payroll commitments, fixed-asset investment commitment, project return on investment, project location, and other project factors.

Available Funding

The program may finance allowable project costs with 166 Direct Loans typically ranging in size from $500,000 to $1,500,000. The amount of the 166 Direct Loan will take into account additional financing offered through other State loan programs total financing from State programs should typically range from 20% to 40% of a project’s total investment.

Job Creation

The program requires the creation of jobs within a three-year period, with typically one new job created for every $35,000 -$75,000 of proceeds from State loan programs. Projects at the higher end of this range will have some combination of significant job creation, high average hourly wage, or will be located in a priority investment area.

The program also provides financing for eligible projects that improve the efficiency of companies’ operations and that enhance their effectiveness in the marketplace (retention of jobs will be considered).

Eligible Projects

Eligible projects include those related to commerce, manufacturing, distribution, or research activities in targeted industries. Retail projects are ineligible for the 166 Direct Loan. Refinancing is ineligible.

Allowable Project Costs/Uses

• Land and/or building purchase if the project involves the purchase of an existing building, the business must occupy at least 51% of the premises

• Machinery & equipment purchase

• Building construction and/or renovation costs if the project involves new construction the business must occupy at least 60% of the premises

• Long-term leasehold improvements

• Capitalized costs directly related to a fixed-asset purchase

 Term

The 166 Direct Loan term is based upon the useful life of the allowable project costs/uses financed. The term for real estate is up to 15 years and the term for machinery and equipment is up to 10 years.

Interest Rate

The 166 Direct Loan interest rate is fixed at closing.

Applicant Contribution

The program requires a 10% minimum equity contribution in the allowable project costs/uses. The required contribution may be higher, depending on the company’s financial and operating position and the project’s characteristics. At least 50% of the allowable project costs must be funded by the borrower, either directly or indirectly through third-party investors and/or lenders.

Security and Collateral

The program requires a first and/or shared first priority mortgage and/or lien position on project costs/uses financed with the 166 Direct Loan proceeds. The program may consider a shared position with participating third-party lenders this position is established via a multi-party agreement between the participating lender(s), the State’s Development Services Agency and the borrower. The program may require the following additional collateral or credit enhancements:

• Personal guarantees from owners of the company

• Corporate guarantees from related companies

• Full or partial letter of credit

• Life insurance on key business owners and/or managers

• Other types of credit enhancement, if necessary

 Disbursement of 166 Direct Loan Proceeds

The 166 Direct Loans are “take-out” financing of allowable project costs/uses that must be purchased with interim financing with the 166 Direct Loan disbursing upon project completion.

Program Fees

• Commitment fee equal to 1.25% % of the loan amount capped at $12,500 is due to proceed with the loan closing and loan documentation process.

• Annual servicing fee equal to 0.25% of the outstanding principal amount of the loan is pro-rated and payable monthly

 Pre-payment

The program does not impose a pre-payment penalty.

Ohio Enterprise Bond Fund Details

The Ohio Enterprise Bond Fund (OEBF Loan), rated AA+ by Standard & Poor’s, promotes economic development, business expansion, and job creation by providing financial assistance for allowable costs of eligible projects in the State of Ohio.

The Ohio Treasurer issues bonds, the proceeds of which are loaned to businesses for allowable costs of eligible projects. The OEBF Loan provides long-term, fixed-rate project financing for qualifying businesses that create or preserve employment opportunities in the State of Ohio. The OEBF Loan provides capital to developed companies with limited access to funding at costs comparable to those of rated multi-national corporations.

Priority may be given to eligible projects based on job creation and payroll commitments, fixed-asset investment commitment, project return on investment, project location, and other project factors.

Available Funding

The program may finance allowable project costs with OEBF loans typically ranging in size from $2,500,000 to $10,000,000. The amount of the OEBF Loan will take into account additional financing offered through other State loan programs total financing fromState programs should typically range from 20% to 40% of the project’s total investment.

Job Creation

The program requires the creation of jobs within a three-year period, with typically one new job created for every $35,000 -$75,000 of proceeds from State loan programs. Projects at the higher end of this range will have some combination of significant job creation, high average hourly wage, or will be located in a priority investment area.

The program also provides financing for eligible projects that improve the efficiency of companies’ operations and that enhance their effectiveness in the marketplace (retention of jobs will be considered).

Eligible Projects

Eligible projects include those related to industry, commerce, manufacturing, distribution, or research activities in targeted industries. Retail projects are ineligible for the OEBF Loan. Refinancing is ineligible.

Allowable Project Costs/Uses

• Land and/or building purchase if the project involves the purchase of an existing building, the business must occupy at least 51% of the premises

• Machinery & equipment purchase

• Building construction and/or renovation costs if the project involves new construction the business must occupy at least 60% of the premises

• Long-term leasehold improvements

• Capitalized costs directly related to a fixed-asset purchase

 Term

The OEBF Loan term is based upon the useful life of the allowable project costs/uses financed. The term for real estate is up to 15 years and the term for machinery and equipment is up to 10 years.

Interest Rate

The interest rate is fixed for the term of the loan and is determined by the market when the bonds are sold. Please contact JobsOhio staff for current rates.

Applicant Contribution

Development requires a 10% minimum equity contribution in the allowable project costs/uses. The required contribution may be higher depending on the company’s financial and operating position and the project’s characteristics.

Bond Reserve

The OEBF Loan requires a 10% reserve in the amount of the OEBF loan. This reserve may be satisfied by a letter of credit or cash reserve and must remain in place for the term of the OEBF Loan.

Security & Collateral

Development requires a first and/or shared first priority mortgage and/or lien position on assets financed with the loan proceeds. Development may consider a shared position with participating third-party lenders. This position is established via an intercreditor agreement between the participating lender(s), Development, and the borrower. Development may require the following additional collateral or credit enhancements:

• Personal guarantees from owners of the company

• Corporate guarantees from related companies

• Full or partial letter of credit

• Life insurance on key business owners and/or managers

• Other types of credit enhancement, if necessary

 Program Fees

• A $30,000 deposit is required to proceed with documenting the loan. These funds are applied to the project’s closing costs.

• Closing costs equal to 2% -3% of the bond amount is due at closing

• Annual servicing fee equal to 0.25% of the outstanding principal amount of the loan is pro-rated and payable monthly

 Pre-payment

Pre-payment of any bond is subject to a make-whole premium, if applicable.

Economic Development Grant

Among the many state of Ohio grants available for business, the Economic Development Grant promotes economic development, business expansion, and job creation.

Ohio’s competitive and profitable business climate makes it easier for companies to start, relocate, or expand in the state. JobsOhio offers many incentives, grants, and other programs to assist companies that are locating or expanding operations. The Economic Development Grant promotes economic development, business expansion, and job creation by providing funding for eligible projects throughout the state.

Who Is Eligible for an Economic Development Grant?

Grant decisions are based on several project factors, including but not limited to job creation, additional payroll, fixed-asset investment commitment, project return on investment, and project location.

 Job Creation

The program requires the creation of jobs within a specified period and may consider the amount of proceeds per job created. JobsOhio may consider providing assistance for eligible projects that improve operational efficiencies or production expansion, along with the retention of jobs.

 Eligible Projects

The program includes projects by companies engaged in JobsOhio’s targeted industries and business functions. JobsOhio will set a wage floor based on multiple wage considerations. Ineligible projects include but are not limited to retail and other population driven businesses.

 Eligible Costs

The JobsOhio Economic Development Grant focuses on fixed-asset and infrastructure investment by companies, which may include the following:

• Land

• Building

• Leasehold improvements

• Machinery and equipment

• Moving and relocation costs of machinery and equipment (freight shipping) related to the project

• Infrastructure including utility, telecommunications, information technology, etc.

• Site development

• Fees and material costs related to planning or feasibility studies

• Engineering services

• Software development

 Ineligible Costs

• Bonds or other debt instruments issued by Grantee to finance completion of the site improvement project shall not be retired or otherwise serviced with grant funds

• Administrative costs (including salaries and travel expenses)

• Rolling stock (defined as anything that has to be registered with a government entity and/or travels on a public right-a-way)

• Contributions and donations by the Grantee to individuals or to other organizations

• Costs (fines, penalties, assessments) resulting from violation of or failure to comply with federal, state, and local laws and regulations

• Food, drinks and entertainment

• Goods and services for personal use by the Grantee’s employees

• Long-term housing expenses

• Interest on borrowed money

• Organized fundraising

• Travel expenses

• Taxes from which the Grantee is normally exempt

• Lease and rent payments

Revitalization Program

Designed to support the acceleration of redeveloping sites in Ohio

The JobsOhio Revitalization Program offers loans and grants to bridge the financial gap between the appealing cost of brownfield sites and the cost of site redevelopment. This program mitigates financial risk and accelerates projects, returning land and buildings to productive use more efficiently.

The JobsOhio Revitalization Program funds projects that retain and create jobs, address environmental risks, and would otherwise have funding gaps. Primary focus is on projects where the cost of redevelopment and remediation is more than the value of the land and a site cannot be competitively developed in the current marketplace.

 The funding can be used for:

• Demolition

• Environmental remediation, testing, and lab fees

• Building renovation

• Asbestos and lead paint abatement

• Removal and disposal of universal and construction waste

• Site preparation

• Infrastructure

Environmental Assessment and Remediation Funding

Under the JobsOhio Revitalization Program Loan and Grant Fund, JobsOhio offers revitalization grants to fund Phase II environmental assessments of sites where development and job creation are likely. The assessments identify environmental risks and outline steps to mitigate them. In addition, a project may support the need for flexible, low interest loans to provide additional funding support.

 Once the site has preliminary cost estimates for the redevelopment project, which may or may not include remediation, JobsOhio will help determine what level of assistance might be available.

Why Consider Revitalization? 

A brownfield site can be redeveloped for uses ranging from office and industrial to mixed-use, depending on the location and characteristics of the property and market factors.

Redeveloped brownfield sites offer companies and local areas certain benefits over greenfield development, such as:

• Access to existing workforce in the area with known traffic patterns

• Reusing existing utilities

• Reducing blight

• Improving the local environment by cleaning up contamination

Revitalization Loan and Grant Fund

The JobsOhio Revitalization Program Loan and Grant Fund is designed to support the acceleration of redeveloping sites in Ohio.

Job Creation

Revitalization projects typically retain and/or create at least 20 jobs at a wage rate commensurate with the local market. Priority will be given to job creation and retention projects within JobsOhio targeted industry sectors, those making additional capital investment beyond remediation and redevelopment, and/or projects with wages higher than the average local wage rate.

 Eligible Applicants

Businesses, nonprofits, or local governments where the entity committing the jobs has signed an agreement such as a letter of intent, option, lease, or holds title for the project site and has a specific business plan, financing plan, and schedule for redevelopment and job creation to occur are eligible.

Eligible Sites

An eligible site is an abandoned or underutilized contiguous property where redevelopment for the immediate and primary purpose of job creation and retention are challenged by significant redevelopment constraints.

 Remediation Projects

For environmental remediation loans and grants a No Further Action letter issued by an Ohio Certified Professional is typically required for projects where long-term engineering controls are necessary on the site. In certain circumstances, JobsOhio may require a Covenant Not to Sue from the Ohio Environmental Protection Agency, depending on the project and site characteristics.

 Available Funding

JobsOhio Revitalization Loans

• Amount–Typically $500,000-$5 million and between 20% and 75% of eligible costs

• Term–Typically between 10 and 15 years

• Interest Rate–Fixed rate to be determined at closing

• Fees–Loan commitment and servicing fees also apply

• Security–To be negotiated

• Payment–Payment of principal and interest will begin when the certificate of occupancy is issued or when the revitalization is estimated for completion, not to exceed 5 years

 JobsOhio Revitalization Grants

• Eligibility–Typically coupled with Revitalization Loans and provided to fill funding gaps where remediation costs exceed the anticipated net gain in land and improvement value, making successful redevelopment unfeasible. Funds are available only to projects where job creation will begin within a negotiated period not to exceed 5 years.

• Amount–Typically up to $1 million

Phase II Assessment Fund

The JobsOhio Revitalization Program Phase II Assessment Fund is designed to assist in the review of potential environmental risks on sites where redevelopment for job creation or retention is likely to occur. Demonstrations of redevelopment readiness might include end user interest in the site, locations that are attractive to JobsOhio targeted industry projects, areas already undergoing redevelopment with other nearby job creation momentum, market studies, and the like.

 Job Creation

The project must demonstrate that job creation or retention is highly likely if environmental risks can be understood and addressed. Priority will be given to job creation and retention projects within JobsOhio targeted industry sectors.

 Eligible Applicants

Business, nonprofits, or local governments where a potential end user has expressed clear interest in reuse of the project site. Clear interest could include a signed agreement such as a letter of intent, option, lease, or holds the title for the project site and has a redevelopment plan that includes new job creation or retention of existing jobs.

 Eligible Sites

• An eligible site is an abandoned or under-utilized contiguous property where redevelopment for the immediate and primary purpose of job creation or retention are complicated by significant redevelopment challenges.

• An All-Appropriate Inquiry (AAI) or OEPA Voluntary Action Program qualified Phase I Environmental Site Assessment has been completed for the site.

 Eligible Costs

Phase II services including environmental testing, lab fees, and work completed by certified professionals for completion of a Voluntary Action Program or American Society for Testing and Materials Phase II environmental property assessment.

 Available Funding

JobsOhio will provide grant funding up to $200,000 per approved project, provided on a reimbursement basis.

Job Creation Tax Credit

The Job Creation Tax Credit is a refundable and performance-based tax credit calculated as a percent of created payroll and 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. Companies creating at least 10 jobs (within three years) with a minimum annual payroll of $660,000 and that pay at least 150 percent of the federal minimum wage are eligible for the credit. Final approval of the tax exemption is contingent upon the approval of the Ohio Tax Credit Authority.

Data Center Tax Exemption Details

The Data Center Tax Exemption provides a sales-tax exemption rate and term that allow for partial or full sales tax exemption on the purchase of eligible data center equipment. Projects must meet minimum investment and payroll thresholds to be eligible. Final approval of the tax exemption is contingent upon the approval of the Ohio Tax Credit Authority.

Roadwork Development (629) Funds

Roadwork Development (629) Funds are available for public roadway improvements, including engineering and design costs. Funds are accessible for projects that create or retain jobs and primarily involve manufacturing, technology, research and development, corporate headquarters, and distribution activity. Grants are provided to a local jurisdiction and require local participation. They can be used to reimburse accumulated costs.

Ohio Site Inventory Program

Grants and low-interest loans for speculative job-ready development projects

The primary goal of the Ohio Site Inventory Program (OSIP) is to fill gaps in Ohio’s real estate inventory with real estate targeting near-term sector wins to ensure our state is more competitive for reactive site selection projects.

The OSIP offers grants and low-interest loans to support speculative site and building development projects with no identified end user.

Program goals include:

• Fill gaps in Ohio’s real estate inventory

• Assist with mitigating developer risks preventing development

• Accelerate the process of bringing in-demand projects and sites online

 JobsOhio seeks a diverse portfolio of inventory types and locations such as:

• Both sites and buildings

• Small, medium, and large projects

• Office or R&D, as well as manufacturing, warehousing, and distribution

• Urban, suburban, and rural locations

• Developed real estate that aligns with one of JobsOhio’s targeted industry sectors

Other Key OSIP Components:

• A lead development entity (i.e., community, port authority, private developer, etc.) should be identified

• Loans will typically support new construction

• Grants will typically support costs associated with demolition, environmental remediation, building renovations, site preparation, and infrastructure improvements

OSIP Projects will be evaluated based on the following guiding principles:

• A clearly identified lead development entity

• Phase I Environmental Site Assessment (ESA) must be completed

• Phase II ESA must be completed if the Phase I recommends it

• Program is reimbursement based

Strongly Preferred:

• Diverse statewide portfolio

• Experienced development partner

• 30+ acres for site development (no proposed building)

• New building construction is typically supported by a loan

Prioritized:

• Projects anticipated to result in near-term job creation

• Brownfield redevelopment projects

• Projects that fill inventory gaps within JobsOhio targeted industry sectors

Program funding comes from a combination of grants and loans to be used as a development accelerator that fills current funding gaps:

• 5 years: July 2020 through June 2025

• $50 million: Annual program funding ($250 MM total)

• $2 million: Max grant per project

• $5 million: Max grant/loan combination per project

• 50%: Max JobsOhio contribution toward total project costs

Ohio Site Inventory Program Pre-Vet Form

Prior to developing a proposal, JobsOhio recommends you complete and submit its OSIP pre-vet form. We will follow up with you about your project. Not sure if you qualify? Please review:

• OSIP guidelines

• Evaluation criteria

• Example proposal

Commercial Air Service Restoration

Our goal is simple: to connect more people to more parts of the country, attracting businesses and talent in the process.

Air Service is Essential to Economic Development

When we asked business leaders around the state what they needed to help their organizations thrive, one answer rose to the top – air service. To expand, relocate to, and, in some cases, stay in Ohio, businesses need more flights.

The Air Service Restoration program was created to bring more flights to Ohio. The program gives Ohio’s commercial airports the opportunity to work collaboratively through public and private partnerships to retain and restore air service for economic development. The program uses short-term revenue guarantee incentives to encourage carriers to operate at Ohio airports. Over time these partnerships become self-sustaining, driven by business and consumer demand.

Investments in air service are already paying off. JobsOhio has helped attract new carrier Breeze, restore lost routes, and bring new international direct flights through Aer Lingus and British Airways.

Ohio’s Newest Routes

Columbus:

Breeze Airways

Charleston, SC (Book)
New Orleans, LA (Book)
Norfolk, VA (Book)
Tampa, FL (Book)
Hartford, CT (Book)
Jacksonville, FL (Book)
Orange County, CA (Book)
Providence, RI (Book)
Raleigh, NC (Book)
West Palm Beach, FL (Book)

Cleveland:

Alaska Airlines

Seattle, WA (Book)

Aer Lingus

Dublin, Ireland (Book)

Cincinnati:

Breeze Airways

Orange County, CA (Book)
Providence, RI (Book)

British Airways

London Heathrow (Book)

Akron-Canton:

Breeze Airways

Charleston, SC (Book)
Las Vegas, NV (Book)
Los Angeles, CA (Book)
Nashville, TN (Book)
New Orleans, LA (Book)
Orlando, FL (Book)
Tampa, FL (Book)
West Palm Beach, FL (Book)

Dayton:

United

Denver, CO (Book)

Research & Development Center Grant Program

Investing in innovation and technology in Ohio

The JobsOhio Research & Development (R&D) Center Grant Program was created to facilitate new strategic corporate R&D centers in Ohio. Such R&D Centers will support the development and commercialization of emerging technologies and/or products that align with one or more of JobsOhio’s targeted industries.

The R&D Center Grant Program helps support JobsOhio’s targeted industries including Advanced Manufacturing, Aerospace & Aviation, Automotive, Healthcare, Financial Services, Food Processing, Information Technology, Logistics & Distribution, and Shale Energy & Petrochemicals.

Job Creation

R&D Center Grant funded activities are expected to create at least 5 new jobs, foster new technology-enabled products or services, and attract new technology-enabled companies to Ohio.

To the extent that new production facilities result from commercialized products and services from a new Ohio R&D center, JobsOhio will require (prior to a Grant recipient’s investment decision) notification of such planned facilities and the opportunity to present site alternatives to the Grant recipient.

Eligible Applicants

Applicants can include any corporation with a minimum of 5 years’ operating history and annual revenue of greater than $10 million. The credit rating of each Applicant will be considered, along with other customary due diligence items.

Eligible R&D Center Projects

To be eligible to receive an R&D Center Grant, a center must represent at least $3 million in new cash investment by a corporation.

Examples of eligible projects could include additive manufacturing (3-D Printing), advanced materials, aeropropulsion, autonomous vehicles, biomedical, carbon fiber, cybersecurity, data analytics, financial technology (FinTech), energy storage/fuel cells, internet of things (IoT), sensors, and unmanned aerial systems.

Eligible Costs

Funds can be used for Qualified Research Expenses (QRE) and satisfy operational, equipment, or facility needs related to:

• Industry-driven, value-added applied research

• Software development

• Developing technologies that can be commercialized by a corporation

 Equipment purchased with JobsOhio funds, if any, must remain in Ohio throughout its useful life. Operational activity funded with JobsOhio funds, if any, must occur in Ohio.

Term

The term of grant agreements will be up to five (5) years. Each year, the grant recipient is required to submit a status report detailing the overall progress of the R&D Center (including milestones, actual vs. budget) and the measurable economic impacts on Ohio.

Disbursement of Funds

JobsOhio funds will be disbursed on a reimbursement basis, first with respect to fixed assets, and second with respect to non-fixed assets, in each case with supporting documentation required with respect to dollars invested. All awards under the R&D Center Grant program are subject to approval by the Chief Investment Officer (CIO).

Innovation Ohio Loan Fund Details

The Innovation Ohio Loan Fund (IOF Loan) promotes assistance to existing Ohio companies in developing next generation products and services within certain targeted industry sectors.

The IOF Loan addresses an identified need in the capital-funding continuum. The IOF Loan is intended to provide capital to Ohio companies with limited access to capital and funds from conventional financing sources due to technical and commercial risk factors associated with the development of new products or services.

Available Funding

The IOF Loan may finance up to 75% of allowable project costs with loans typically ranging in size from $500,000 to $1,500,000.

Job Creation

The program requires a commitment to create jobs in the State of Ohio through the IOF Loan program. The number of jobs committed, as well as the annual payroll will be considered when determining the funding amount.

Targeted Industry Sectors

The IOF Loan will target industry sectors involving the production or use of:

• Advanced Materials

• Instruments, Controls, and Electronics

• Power and Propulsion

• Biosciences

• Information Technology

 Investment Focus

The IOF Loan is intended to support the growth capital needs of established Ohio companies that have:

• minimum of two years of operating history and revenues generated

• attracted or are likely to attract additional third-party capital to the project

• developed a proven product for a proven market

• have customer orders and reasonable prospects for rapid sales growth

• have attracted third party capital and has reasonable prospects of continued backing from such investors the program may require additional investment in the company as a condition to an IOF Loan

Eligible Projects

Eligible projects include those related to industry, commerce, manufacturing, distribution, or research activities. Retail projects are ineligible for the IOF Loan.

Allowable Project Costs/Uses

Allowable costs are defined as costs that can be capitalized under applicable generally accepted accounting principles (GAAP).

Term

The IOF Loan term is determined by staff and will range from 5 –7 years or upon the useful life of the allowable project costs/uses financed.

Interest Rate

The IOF Loan rate will be fixed at closing.

Applicant Contribution

The program requires a 25% minimum contribution in the allowable project costs/uses. The required contribution may be higher depending on the financial and operating position of the company. In-kind contributions of labor, equipment, or similar items are not acceptable as the applicant’s contribution.

Security & Collateral

The program may require a first and/or shared first priority mortgage and/or lien position on all business assets including Intellectual Property. At a minimum, the program will require a senior position on all project costs/uses financed with the IOF Loan proceeds.

Program Fees

• Commitment fee equal to 1.75% of the loan amount capped at $17,500 is due to proceed with the loan closing and loan documentation process.

• Annual servicing fee equal to 1% of the outstanding principal amount of the loan is pro-rated and payable monthly.

• Participation fee equal to 10% of the maximum drawn principal will be payable upon maturity of the loan.

 Pre-payment

The program does not impose a pre-payment penalty.