If you are a small business owner in Ohio looking for ways to secure funding, you’re in the right place. Whether you’re a startup or an established business, finding the right small business loans in Ohio can be challenging. However, there are many options available to Ohio entrepreneurs that provide financial support for everything from working capital to expansion and hiring.
From government-backed loans to nonprofit organizations that provide loans at affordable rates, Ohio offers a wide range of programs that are designed to assist you in growing and thriving. Below are 20 ways to secure small business loans in Ohio, with details about the programs, along with web links that will help you get started.
1. U.S. Small Business Administration Loans
These involve the SBA 7(a) Loan, the CDC/504 Loan, and the SBA Microloan Program. These are useful to business owners in Ohio as they have low-interest rates, long repayment periods, and lower down payment requirements. SBA loans are provided through participating lenders in Ohio, making the application process easier for most businesses across the state.
2. Ohio Development Services Agency (ODSA) Loans
The Ohio Development Services Agency (ODSA) offers a variety of financing options for small businesses, including the Ohio Capital Access Program (OCAP) and the Ohio Enterprise Bond Fund. These programs are designed to make it easier for businesses to get loans from participating lenders, even if they have less-than-perfect credit.
3. Ohio Minority Business Development Division
Ohio’s Minority Business Development Division provides special assistance to minority-owned businesses. With its various programs, you can gain funding to help your business grow, including loans for purchasing equipment, working capital, and real estate investments.
4. Community Development Block Grant (CDBG) Program
Funding offered to businesses located in the eligible communities of Ohio through CDBG Programs. It focuses on jobs and economic development, and enhancement of infrastructure. This would be of great value especially for small businesses to be expanded and create more job opportunities within low-to-moderate-income neighborhoods.
5. US Economic Development Administration Grants
Ohio businesses in economically distressed areas can apply for funding through the EDA. The grants are aimed at funding projects that can spur economic recovery and innovation. These grants can fund infrastructure, research and development, and technological advancement.
6. Small Business Innovation Research (SBIR) Program
The SBIR program can be accessed by Ohio businesses which deal in research and development. Some are specifically focused on the science and technology areas. It is non-dilutive funding, so no equity in your business must be given up for access to a loan or grant.
7. Ohio Capital Corporation for Housing (OCCH)
OCCH offers a range of loans and financial products designed to help Ohio businesses in the affordable housing and real estate sectors. The organization assists businesses in securing funding for projects such as property development, rehabilitation, and job creation.
8. Local Economic Development Agencies
Many Ohio cities, such as Cleveland, Columbus, and Cincinnati, have local economic development agencies that offer small business loans in Ohio. These funds are specifically focused on assisting local businesses in acquiring low-interest loans related to real estate, equipment, and working capital.
9. Cleveland Entrepreneurial Loan Fund
If your business is based in Cleveland, the Cleveland Entrepreneurial Loan Fund provides financing opportunities for businesses seeking to grow. This fund is dedicated to small businesses seeking access to capital to expand, hire new employees, or develop new products.
10. Columbus Small Business Development Loan Program
Columbus has a Small Business Development Loan Program that helps small businesses access financing for expansion and equipment purchases. This program is a fantastic option for businesses in Columbus and surrounding areas.
Find the right loan product for your business.
11. Cincinnati Economic Development Loan Fund
The Cincinnati Economic Development Loan Fund offers low-interest loans to small businesses in the Cincinnati area. Such loans can be availed for purposes such as inventory, real estate, and employee expansion.
12. Kiva Loans
Kiva is another crowd source funding alternative that gives a business access to small interest-free loans. In order for Ohio businesses to utilize Kiva, one should start by creating a profile for the business on Kiva and raising funds in this community of individual lenders.
13. Nonprofit Lenders
Some of the non-profits in Ohio offer small business affordable loans. These are such organizations as the Finance Fund, and the Ohio CDC Association. The nonprofits loan in terms that are quite accommodating and have fewer qualifications. Compare with: Finance Fund
14. The Ohio Arts Council offers the grants.
Ohio’s Ohio Arts Council has also made grants available to creative industries businesses, including the visual arts, performing arts, and design. Such funds can be used to address operational, project-based funding, and capital requirements.
15. PNC Community Development Loan Fund
PNC Bank’s Community Development Loan Fund provides low interest loans to small businesses that are aimed at community development in Ohio. These low-interest loans are meant for businesses with a focus to create employment and improve infrastructure in the community.
16. Akron Economic Development Loan Fund
The Akron Economic Development Loan Fund helps small businesses in Akron by offering low-interest loans for inventory, equipment, and real estate purchases. This fund is suitable for businesses in Akron that need to expand or develop new products.
17. Regional Revolving Loan Funds
Ohio counties commonly have revolving loan funds that finance businesses in those respective areas. These funds are used in financing working capital, inventory and equipment purchases for local area businesses.
18. Ohio Development Finance Agency (ODFA)
The Ohio Development Finance Agency (ODFA) allows businesses to access tax-exempt and taxable bonds, loans, among other financial products. This agency supports larger businesses or expansion projects that will be able to have a higher impact on the economy.
19. Crowdfunding Platforms
Many Ohio businesses use crowdfunding such as Kickstarter and Indiegogo to raise capital. Here, you can raise funds for your business through a small investment from individuals believing in your project.
20. Microloans from the Ohio Small Business Development Center (SBDC)
The Ohio SBDC offers microloans to small businesses looking to start or grow. These loans are ideal for small businesses that need quick, low-cost financing for equipment, working capital, or other needs.
Conclusion
For small business owners in Ohio, obtaining financing is an essential step towards growth and success. As such, government agencies, nonprofits, and local economic development programs provide diverse ways for small businesses in Ohio to find the appropriate financing needed for your business.
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