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Harrison County
Ohio

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FINANCIAL OPPORTUNITIES

As outlined below, there are a number of programs and incentives providing financial opportunities for businesses which locate or expand in Harrison County, Ohio. Please contact the Harrison County Community Improvement Corporation to discuss your particular plans so that we may work with you to design a package of support programs which best suits your needs.

I.  AVAILABLE THROUGH THE STATE OF OHIO

The State of Ohio has taken the initiative of providing a variety of financing opportunities for new and expanding businesses that are unable to obtain complete financing through traditional sources. Many of these programs may be combined with local programs available within Harrison County to provide even more attractive project packages.

DIRECT LOAN (166 Loan)

Up to 40 percent of total project cost ($1 million maximum) available for land and building acquisition, expansion or renovation, equipment purchase. Primarily for industrial projects. Fixed rate of 4 percent for 10-15 years. Requirements: bank participation of 25 percent and equity minimum of 10 percent; creation of one job for every $15,000 of loan.

COMMUNITY DEVELOPMENT BLOCK GRANTS

Maximum grant of $350,000 at fixed rate of 5-7 percent, depending on need. Available only for fixed assets related to commercial, industrial or infrastructure projects. Requirements: creation or retention of at least 5 jobs, with at least 51 percent from low and moderate income households; developer must provide at least 10 percent equity.

POOLED BOND PROGRAM

Low interest loans for building acquisition, construction, expansion or renovation, and new equipment purchase for manufacturing projects between $400,000 and $10 million. Loans for up to 30 years at 3-4 percent below market rates. Requirements: applicant must provide letter of credit from participating lender, project must create or retain jobs.

INDUSTRIAL REVENUE BONDS

Loans at 75 percent of prime for up to 20 years for fixed assets and equipment for manufacturing projects. Requirements: must meet conventional bank standards.

MINORITY BUSINESS DEVELOPMENT FINANCING

Low interest loans for purchase or improvement of fixed assets for state certified minority-owned businesses. Fixed interest rate of 4.5 percent for up to 10 years for up to 40 percent of project cost (limit $750,000). Requirements: must create one job for every $10,000 of loan.

OHIO MINI-LOAN PROGRAM

Low interest loan for fixed assets or equipment for small businesses start-up or expansion. Guarantee of bank loan at 5.5 percent for up to 10 years. For projects of $100,000 or less for businesses with fewer than 25 employees.

ADMINISTRATION OF SMALL BUSINESS 504 LOAN

Loan for up to 50 percent of cost of purchase of fixed assets for business with net worth under $6 million. Interest 1 percent above current long-term treasury bond rates for 10-20 years. Requirement: must create one job for every $35,000 of loan.

WITHROW LINKED DEPOSIT PROGRAM

Provides reduction of 3 percent of interest rate on loan from participating bank for two years, with possible two-year extension. Available for fixed assets, working capital, or refinancing of eligible small business. Requirements: approved bank loan; creation of one job for every $15-25,000 received.

OHIO ENTERPRISE BOND FUND

Long-term, fixed rate loans for land and building acquisition, construction, expansion or renovation, and equipment purchase for commercial or industrial projects at fixed rate at the time of sale of the bonds, for up to 25 years. Requirement: must provide for job creation or retention.

JOB CREATION TAX CREDIT

This program provides tax credits or rebates for companies creating new jobs through the establishment of new business or expansion of existing business. Percentages of new employee income taxes will be credited against the Ohio corporate taxes of the employer. The percentage to be credited, up to 100 percent, and the term of the agreement, up to 10 years, is determined by the nature and scope of the project.

II.  AVAILABLE FROM LOCAL SOURCES IN HARRISON COUNTY

County, municipal and development officials in Harrison County have implemented a number of programs designed to facilitate the financing of new business and industry development in the county. Combined with state incentives, federal programs, job training opportunities, and personalized assistance in customizing each development package, Harrison County provides a broad array of incentives and programs to assist with new and existing business development and expansion needs.

TAX INCENTIVES

Through the Harrison County Rural Enterprise Zone, which includes the entire county, reductions may be authorized for up to 60 percent of the increased value of real estate, personal property and inventory for a period of up to 10 years. Agreements are subject to approval by the Harrison County Board of Commissioners, as well as the township or village in which the development is to take place. Agreements require specified levels of employment, as well as investment or expansion, annually over the life of the agreement.

HARRISON COUNTY REVOLVING LOAN FUND

The Harrison County Revolving Loan Fund is administered by the Harrison County Community Improvement Corporation.  Essential elements of agreements include the creation of jobs and financial investment in the local economy.

VILLAGE OF CADIZ REVOLVING LOAN FUND

The village offers loans for manufacturing or commercial development or for infrastructure needs. Projects must be located within the village corporation limits, which includes the Harrison County Industrial Park. Bank participation is required.

HARRISON COUNTY LINKED DEPOSIT LOAN PROGRAM

Provides a reduction in interest rates of three percent on development loans obtained through participating local financial institutions. Interest reduction on loans is available for a period of two years, with potential renewal for an additional two-year period.

HARRISON COUNTY INDUSTRIAL PARK

The county will provide reduced prices on land within its 500 acre industrial park for qualifying manufacturing or warehousing concerns. Paved road, water, and sewer service are available throughout the Park, including natural gas and 3-phase electricity. The Industrial Park is located within the village limits of Cadiz.

CADIZ LINKED DEPOSIT PROGRAM

Provides for reduction by two percent interest on development loans obtained through participating local financial institutions. Interest reductions on loans are available for a period of two years, with potential for an additional two year period.

OMEGA REVOLVING LOAN FUND

Low-interest loans for start-up or expansion of businesses located within the 10-county service area of the Ohio Mid-Eastern Governments Association (a regional planning and development organization). Loans are made in conjunction with bank financing, with a minimum of 10 percent equity required for existing businesses, 20 percent for start-up operations. Federal funding through Economic Development Administration for up to $75,000 or 1/3 of project cost. The project must create one job for every $10,000 of OMEGA revolving loan. Working Capital loans may also be available.

PARTICIPATING LOCAL LENDING INSTITUTIONS:

Belmont National Bank, Cadiz
National City Bank, Cadiz
Firstar Bank, Hopedale
National City Bank, Scio
Wheeling National Bank, Freeport
Citizens Bank, Jewett

III.  AVAILABLE THROUGH FEDERAL SOURCES

The U.S. Small Business Administration offers several programs which benefit local businesses.

SMALL BUSINESS DEVELOPMENT CENTER

The SBDC which serves Harrison County is based at the Kent State University campus in New Philadelphia. The service provides resources and educational programs designed to assist small businesses and start up businesses. A key element of the service is assistance with business plan development.

HUB ZONE PROGRAM

The federal HUB Zone ("Historically Underutilized Business Zone") program provides significant advantages for businesses which wish to provide products to federal government agencies through the procurement process. The program targets locations with high unemployment rates and/or low income rates.

Participation in the program enables businesses to receive several benefits, including:

- HUB Zone participants receive competitive advantages in the bidding process for federal procurement

- Federal agencies are required to target HUB Zone participants for procurement opportunities

- Participation in the federal electronic procurement system.

All Harrison County locations are eligible for participation in the HUB Zone program.

SMALL BUSINESS ADMINISTRATION LOAN PROGRAM

The SBA offers loan guarantee programs and a micro loan program in conjunction with local lending institutions.