Minority Financial Incentives >> Minority Direct Loan Program

Private Financing Requirements

The State requires that a conventional lender and the business itself participate in the project to the maximum extent possible. Preference will be given to projects, which maximize these sources.

The minimum amount of private lender participation required in the project is 30 percent of the Minority Direct Loan eligible project costs.

A typical Minority Direct Loan project structure would be:

• Bank Loan: 50 percent of total project cost
• Owner’s Equity: 10 percent of total project cost
• Minority Direct Loan: 40 percent of total project cost

 

• Program Summary
• Use of Funds
• Eligible Borrowers
• Amount of Minority Direct Loans
• Interest Rate
• Terms
• Private Financing Requirements
• Collateral/Security for State Loan
• Fees
• Prevailing Wage
• Criteria for Loan Application Evaluation
• Steps in Applying for Ohio Minority Direct Loan Financing

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