The Small Business Administration (SBA) and Ohio Department of Development have a wide variety of financing tools available to help small businesses expand their operations. Programs such as SBA 504 and Ohio 166 loans provide financing for capital costs including construction, building acquisition, renovation, and equipment. Loan amounts vary depending on the program, but usually are no more than $1.5 million.
For borrowers, participation in an SBA program helps lower the loan's interest rate. With a 504 loan, the federal funding can represent up to 40% of total project costs. Ten percent of the project comes from owner equity and the remainder is supplied by commercial lenders.
Recently a new tool became available through the Community Reinvestment Fund for projects in low income communities. New Market Tax Credits can provide a below market, fixed rate loan for seven or twenty-five years. This loan program can be used in conjunction with the SBA 504 program to provide a 90% financing option for the acquisition of real estate for projects that are both eligible in New Market areas and also meet SBA 504 guidelines. If you need assistance with a new or existing loan, please contact Small Business Development Director John Melvin at (513) 576-5007. More information can also be found on the Clermont Chamber's website.
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