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Ohio to Receive Funding to Support Small Businesses

For Immediate Release
Date: October 13, 2022
Contact:   Todd Walker  Todd.Walker@development.ohio.gov 

COLUMBUS, Ohio – The Ohio Department of Development today announced that up to $182 million will soon be available to support small businesses in Ohio.
 
“There is no better place to live, work, and raise a family than in Ohio, and our small businesses are a major reason why,” said Governor Mike DeWine. “My administration is dedicated to supporting the small businesses that are so integral to our state, especially those that need extra support to get off the ground and become a success.”
 
The funds are being awarded to Ohio as part of the federal State Small Business Credit Initiative (SSBCI). Ohio will initially receive approximately $52.4 million to support socially and economically disadvantaged individuals, very small businesses, and early-stage, technology-based companies. The remaining funds will be made available through multiple allocations as the state meets expected performance targets.
 
“We’re going to use these funds to help businesses grow so they can hire more employees,” Lt. Governor Jon Husted said. “A strong base of small businesses and tech companies is crucial to Ohio’s future.”
 
The Department of Development will administer the SSBCI program in Ohio through the Minority Business Development Division and the Ohio Third Frontier, splitting the funding among four programs that are expected to be available by the end of 2022:
 
• The Community Development Financial Institutions (CDFI) Loan Participation Program will provide loans to socially and economically disadvantaged individuals, very small businesses, and businesses located in CDFI tracts.

• The Ohio Collateral Enhancement Program will provide collateral on small business loans made by financial institutions to allow small businesses to access loans that otherwise would have been denied.

• The Ohio Venture Fund will provide capital to investment funds to invest in early-stage, tech-based companies.

• The Early-Stage Focus Fund will complement the existing Ohio Third Frontier Pre-Seed Fund to support funds that target investments to early-stage, tech-based companies in underserved communities and populations.
 
“Small businesses are the backbone of the Ohio economy, and this money will help ensure they are positioned to grow and create good jobs across Ohio,” Development Director Lydia Mihalik said. “Our staff is working hard to stand up these programs so the funding can flow to businesses as soon as possible.”
 
The American Rescue Plan reauthorized and expanded SSBCI, which was originally established in 2010 to increase access to capital for traditionally underserved small businesses and entrepreneurs.
 
Additional details about the programs will be made available at Development.Ohio.gov.