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You’re not alone if you run a small business in Ohio. According to OhioChamber.com, the Buckeye State has almost 186,000 small companies. They employ approximately 2.1 million people and account for virtually all of the state’s companies (98 percent). The majority of small companies have less than 20 employees.

You’ll need money to establish or grow your company in order to keep the economy running. Here are some ideas to obtain an Ohio business loan if you’re not sure where to start.

The Ohio Capital Access Program (OCAP) is a state-funded (OCAP)

The Ohio Capital Access Program was founded in 2002 to assist small company owners with funding for fixed assets and working capital. When a new loan is authorized under the scheme, both the borrower and the lender pay a portion of the loan to a reserve fund, similar to a loan guarantee. The lender holds this money (three-six percent of the loan amount) in trust in case of default.

You may utilize the loan funds for the following reasons after it has been approved:

-Purchasing new or secondhand machinery

-Investing in commercial property

-Commercial property expansion or renovation

-Purchases of inventory, working capital, or rolling stock

-Refinancing another loan, franchise fees, or start-up expenses are all possible options.

You may borrow up to $250,000.00 in working capital finance and $350,000.00 in fixed asset financing via OCAP. Under this program, you are not required to borrow a minimum amount.

The Ohio Capital Access Program was founded in 2002 to assist small company owners with funding for fixed assets and working capital. When a new loan is authorized under the scheme, both the borrower and the lender pay a portion of the loan to a reserve fund, similar to a loan guarantee. The lender holds this money (three-six percent of the loan amount) in trust in case of default.

You may utilize the loan funds for the following reasons after it has been approved:

-Purchasing new or secondhand machinery

-Investing in commercial property

-Commercial property expansion or renovation

-Purchases of inventory, working capital, or rolling stock

-Refinancing another loan, franchise fees, or start-up expenses are all possible options.

You may borrow up to $250,000.00 in working capital finance and $350,000.00 in fixed asset financing via OCAP. Under this program, you are not required to borrow a minimum amount.

Institute for Economic and Community Development

The Economic & Community Development Institute (ECDI) is a non-profit organization that invests in people. This may be the perfect financing option for you if you need money to start or grow your company and need to borrow between $500 and $350,000.

ECDI loans have a maximum duration of five years, and closing costs are 5% of the loan amount. If you want to pursue this path, you’ll need to complete necessary training and create a business plan.

Microloan Program of the United States Small Business Administration

Consider applying for funding from the MicroLoan Program if you need a relatively modest amount of money for your start-up or developing small company. You don’t apply for funding directly to the Small Business Administration (SBA); instead, the SBA makes money accessible to non-profit lenders in your region.

These Microlender intermediaries offer money to small company owners in sums ranging from $1,000 to $50,000, with the typical loan amount being about $13,000. Eligibility decisions are handled on a local level, with each lender accepting applicants’ credit and collateral amount on their own.

SBA Business Loan in Ohio

Alternatively, if you need a somewhat bigger loan, the SBA 7(a) lending program may be of interest. The Small Company Administration (SBA) does not give money to business owners directly via SBA 7(a) loans or other SBA-guaranteed loans. Instead, the SBA guarantees the money up to a specific amount in the event of failure. An entrepreneur receives the following advantages when this assurance is in place:

-The requested money has been approved.

-Pay a smaller down payment

-Interest rates and fees that are competitive (similar to non-guaranteed loans)

For additional information, see the SBA 7(a) Loan Fact Sheet

If you have tried and failed to get loan financing and have exhausted all other options, Ohio SBA business loans are a viable alternative for your company. An SBA 7(a) loan may be a feasible alternative if you are unable to put together a deal for conventional financing.