Lakes in Economic Distress Loan Program
Lakes in Economic Distress Loan Program Application
Office of Strategic Business Investments
The Lakes in Economic Distress Loan Program provides financial assistance to businesses or other entities that have been adversely impacted as a result of their economic dependence upon a lake that has been declared an area “under economic distress”. The declaration of a lake as an area under economic distress (“Distressed Lake”) is determined by the Director of the Ohio Department of Natural Resources.
This program is available to businesses and other entities that have limited access to capital and financing from conventional sources. There are two types of loans: a Micro-Loan and a Fixed-Asset Loan. The Micro-Loan will focus on working capital needs, while the Fixed-Asset Loan will finance improvements to real property, machinery, or equipment for the business. The Program’s emphasis will be providing financing for projects that focus on achieving long-term economic stability in the area.
For businesses and other entities located in counties that encompass a part or all of the Distressed Lake’s area. The business or other entity must meet the following eligibility requirements in order to apply for the program:
- Have been in continual operation for at least 24 months prior to the ODNR declaration date of a Distressed Lake and currently in operations or with firm plans to reopen in 2017.
- Experience at least a 40 percent year-to-year reduction in gross revenue comparing financial data for either of 2014-2016, 2014-2015, and 2015-2016 as certified by an authorized representative of the applicant.
- Evidence a direct link between the lake’s designation and their economic condition (i.e. their revenue is dependent on lake traffic/tourism).
In addition, the business or other entity must be in good standing with the Ohio Secretary of State and cannot be delinquent on any tax liabilities or in violation with any environmental laws and/or regulations with the state of Ohio.
Real estate and rental property companies are not eligible businesses under the program. Real estate and rental property companies include, but are not limited to: property rentals and apartment complexes.
Eligible projects include those that directly assist affected businesses and other entities by maintaining and/or upgrading their operations. Projects that market or promote the region as a whole arenoteligible.
The Micro-Loan Program will provide loans to cover working capital costs. Loans will not exceed $5,000 per borrower. Eligible costs include, but are not limited to:
- working capital
- market research
The term of the loan will be up to seven years. Loan payments will be deferred for the first 12 months following the initial disbursement, and the principal will be amortized over the remaining term of the loan.
Fixed-Asset Loan Program
The Fixed-Asset Loan Program will provide loans to assist in the financing costs of improvements to real property, machinery or equipment for use in the business. Eligible costs include, but are not limited to:
- Building renovations
- Long-term leasehold improvements
- Site improvements
- Equipment purchase/upgrades/rental payments
- Dock storage/construction/installation
- Signage improvements/establishment
Loan awards may cover up to 90% of project costs, not to exceed $20,000 per borrower. The term of the loan will be up to seven years. Loan payments will be deferred for the first 12 months following the initial disbursement, and the principal will be amortized over the remaining term of the loan.
How to Apply
- Applicants for the loan program must use the online application for the program and submit it electronically.
- Applicants may file an application for both the Micro-Loan and Fixed-Asset Loan programs, but can only receive funding from one program. If an applicant submits an application for both the Micro-Loan and Fixed-Asset Loan programs, the applicant shall declare which program it prefers.
- Applicants must be in good standing with all state of Ohio agencies, including the Department of Taxation and the Ohio Environmental Protection Agency.
- If a business is approved for funding under the Lakes in Economic Distress Loan Program, it will not be eligible for funding under the Lakes in Economic Distress Grant Program.
- Application instructions can be found here. ODSA recommends printing a copy for reference while completing the application.
- Note: Applications that are incomplete or not submitted in the format requested may not be considered for funding. ODSA is under no obligation to consider an incomplete application.
If you have any questions or need assistance with the application, please contact Bryn Webster at (614) 728-0087.
In Order to Submit an Application
- Fill out reach required field on the application (denoted by a red bar next to the question)
- Indicate for which loan program (Micro-Loan or Fixed-Asset) your applying. If the application is for both programs, indicate which program is your preference. Applicants can only receive funding from one program.
- Upload the required four forms necessary to process the application. They are:
- Ohio Secretary of State’s (SOS) Office Business Filing Report
- W-9 Request for Taxpayer Identification Number and Certification
- Supplier Information Form
- Authorization Agreement for Direct Deposit of EFT (Electronic Funds Transfer) Payments
- Upload two years of tax returns for review. If the returns are not available, please indicate the reason in the accompanying text box
- Agree to the two required statements (Outstanding Liabilities and Project Cost Incurrence) by checking the associated boxes
- Electronically sign the application