Financial Incentives Manager
Click here to see a list of the Regional 166 Local Economic Development Agencies
The Regional 166 Direct Loan Program (Regional 166 Direct Loan) promotes economic development, business expansion and job creation by providing financial assistance for allowable costs of eligible projects in the State of Ohio. This program provides low-interest loans to businesses creating new jobs or preserving existing employment opportunities in the state. Application collection and review, along with initial program approvals are handled by certified local economic development agencies.
Eligible projects include those related to industry, commerce, distribution or research activities. Both retail and refinancing projects are ineligible for the program.
Allowable project costs include:
The term of the loan is based upon the useful life of the allowable project costs/uses financed and should reflect the term of the bank loan included in the project. Loan terms can be up to 15 years for financed real estate and up to 10 years for financed machinery/equipment. The interest rate is fixed at or below market rates.
ODSA requires the creation or retention, within a three-year period, of one job for each $50,000 of Regional 166 Direct Loan proceeds. Priority may be given to eligible projects with higher wage and job creation commitments or projects located in a Priority Investment Area.
ODSA requires a 10% minimum equity contribution in the allowable project costs/uses. The required contribution may be higher for early stage companies and special purpose facilities. At least 40% of the allowable project costs must be funded by the borrower either directly or indirectly through third party investors and/or lenders.
ODSA requires a first and/or shared first priority mortgage and/or lien position on project costs/uses financed with the Regional 166 Direct Loan proceeds. ODSA may require the following additional collateral or credit enhancements:
ODSA imposes no pre-payment penalty.