Minority Financial Incentives >> Minority Direct Loan Program

Use of Funds

Funds received under the Minority Direct Loan Program may be used for part of the cost of acquisition, renovation or construction of depreciable fixed assets.

This includes the following categories:

• Acquisition of land and buildings
• New construction
• Renovation to existing buildings
• Acquisition of machinery and equipment

In addition, limited soft costs related directly to the fixed asset expenditure may be included. Examples of eligible soft costs include: architectural/engineering costs; installation costs for machinery; and financing costs for bank loans.

Minority Direct Loan funds may not be used for:

• Working capital
• Refinancing
• Rolling stock
• Inventory/receivable financing
• Speculative real estate development
• Relocation costs
• Office equipment
• Small tools
• Supplies

• 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