Ohio Enterprise Bond Fund (OEBF)

JobsOhio

Summary:

The Ohio Enterprise Bond Fund (OEBF Loan), rated AA+ by Standard & Poor’s, promotes economic development, business expansion and job creation by providing financial assistance for allowable costs of eligible projects in the State of Ohio.

The Ohio Treasurer issues bonds, the proceeds of which are loaned to businesses for allowable costs of eligible projects. The OEBF Loan provides long-term, fixed-rate project financing for qualifying businesses that create or preserve employment opportunities in the State of Ohio. The OEBF Loan provides capital to developed companies with limited access to funding at costs comparable to those of rated multi-national corporations.

The program may finance allowable project costs with OEBF loans typically ranging in size from $2,500,000 to $10,000,000. The amount of the OEBF Loan will take into account additional financing offered through other State loan programs total financing from State programs should typically range from 20% to 40% of the project’s total investment. The program requires the creation of jobs within a three-year period, with typically one new job created for every $35,000 - $75,000 of proceeds from State loan programs.

Eligible Recipients:

For-Profit Business

Eligible Recipients Detail:

Eligible projects include those related to industry, commerce, manufacturing, distribution or research activities in targeted industries. Retail projects are ineligible for the OEBF Loan.

Eligible Purpose:

Broadband Enabled Devices (General); Broadband-Related Industry; Last Mile Connectivity; Building Connectivity; General Infrastructure (Attached to Job Creation)

Eligible Purpose Detail:

Eligible purposes include:

-Land and/or building purchase if the project involves the purchase of an existing building, the business must occupy at least 51% of the premises
-Machinery & equipment purchase
-Building construction and/or renovation costs if the project involves new construction the business must occupy at least 60% of the premises
-Long-term leasehold improvements
-Capitalized costs directly related to a fixed-asset purchase

Funding Match/Terms:

The OEBF Loan term is based upon the useful life of the allowable project costs/uses financed. The term for real estate is up to 15 years and the term for machinery and equipment is up to 10 years. The interest rate is fixed for the term of the loan and is determined by the market when the bonds are sold. The OEBF Loan requires a 10% reserve in the amount of the OEBF loan. This reserve may be satisfied by a letter of credit or cash reserve and must remain in place for the term of the OEBF Loan.