TAFT ANNOUNCES RESEARCH AND DEVELOPMENT INVESTMENT LOAN FUND IS NOW AVAILABLE

FOR IMMEDIATE RELEASE
March 25, 2004

Columbus, OH -- Governor Bob Taft today announced that the Research and Development Investment Loan Fund (R&D Fund) is available for Ohio businesses involved in research and development activities. Through the R&D Fund, the State will aggressively pursue research and development operations/facilities and fund the cost of capital purchases.

“Research and development is the cornerstone of the knowledge economy,” Taft said. “These funds will provide businesses with the resources necessary to create innovative products and processes and will enable Ohio to aggressively compete for private-sector R&D investments and create high wage jobs.”

The State will use the R&D Fund to target large investments from companies with significant assets and sales, and assist in financing the acquisition, construction and related costs of technology, facilities and equipment. State assistance will be in the form of low-interest loans ranging from $1.5 to $25 million. The loans can finance up to 50 percent of a project’s allowable costs. Initially, $50 million will be available, with the ultimate goal of growing the fund to $200 million.

Additionally, businesses that meet the program requirements will be eligible for a dollar-for-dollar credit against their Ohio Corporate Franchise Tax, equal to the amount of principal repaid on the loan but limited to $150,000 each year.

Eligible research and development projects are defined as projects in which research is undertaken for the purpose of discovering information that is technological in nature and the application of which is intended to be useful in the development of new or improved product, process, technique, formula or invention. Project employment will be comprised of a significant representation of scientists, researchers and technicians.

According to State Development Director Bruce Johnson, interested applicants must complete a Financial Assistance Application with the Ohio Department of Development (ODOD), which will perform an eligibility review and credit analysis. The Development Financing Advisory Council (DFAC) will make funding recommendations to the State Controlling Board for final approval.

“The R&D Fund is another tool we can use to encourage companies to expand or locate in Ohio,” said Johnson. “Our economy depends on tapping into Ohio’s innovative resources.”

For more information about the R&D Fund visit www.odod.state.oh.us.