Download - Direct 166 Loan Program
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166 Direct Loan
• 166 Direct Loan Program– The 166 Loan Program was created in 1982 to promote economic development in the State
of Ohio.
– Created a large revolving loan fund out of which loans are made. As repayments are collected, new loans are made.
– The 166 Loan Program provides low-interest loans to businesses willing to commit to create new jobs or preserve existing employment opportunities in the State of Ohio.
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166 Direct Loan
• Available Funding– Loan amounts of $500,000 to $1 million
– Typically between 30-50% of the projects allowable costs
– Up to $15,000 per job ($35,000 in priority investment areas)
– Partner with bank and equity
• Rate and Term– Interest rates are fixed
– Term conditions upon the useful life of the assets
• Maximum of up to 15 years for real estate
• Maximum of up to 10 years for machinery and equipment
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166 Direct Loan
• Collateral /Security Requirements– Shared first priority mortgage and/or lien position on assets financed loan proceeds
– Personal guarantees from owners with 20% ownership in company
• May be required:
– Corporate guarantees from related companies
– Full or partial letter of credit
– Life insurance on key business owners
– Equity Requirement - 10% of the loan amount
– No pre-payment penalty
– Take-out financing
• Funds will only be disbursed once the project has been completed. The borrower will be responsible for securing financing for project related cost through loan closing and project completion.
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166 Direct Loan
• Eligible Businesses and Costs include:– Manufacturing, Research and Development, Distribution
– Retail projects are ineligible
– Fixed asset investments
• Land and building acquisition
• Building expansion, renovation and construction
• Equipment purchases
• Acquisition of ongoing business fixed assets
• Limited soft costs
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For More Information:
Web Site: For all ODOD debt financing information discussed today or more detailed
information http://development.ohio.gov/EDD/Loans_Grants.htm
Questions? Contact:
Office of Financial IncentivesState of Ohio, Department of Development(614) 466-5420
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Ohio Department of Development Financing Programs
Ohio Economic Development Association
Office of Financial Incentives
October 14, 2009