Which Ohio Small Business Loans Should You Apply For?
The new year is a chance to reflect on your Ohio small business’s success, set goals for the upcoming year, and plan for growth. It’s also an opportunity to take a hard look at your financials and cash flow. An Ohio small business loan can provide you with needed capital to scale and grow your business.
While small business loans in Ohio are intended to help organizations expand, each one is different and has its own eligibility requirements. Depending on your business and its unique financing needs, you may or may not qualify for a small business loan. Read on to discover which Ohio small business loans you should apply for this year.
Small Business Loans in Ohio
- Women’s Business Enterprise Loan Program
If your Ohio-based business is 51% owned and controlled by women, or is certified as a Women-owned Business Enterprise, you may be eligible to apply for the Women’s Business Enterprise Loan Program.
The purpose of this program is to boost the growth of existing women-owned enterprises by offering loans at or below the market rate interest. Ohio small business owners who apply for the loan program can receive between $45,000 and $500,000. The funds can be used for equipment or machinery purchases, inventory, renovations, real estate, and leasehold improvements. Learn more about the program guidelines here.
- Ohio Micro-Loan Program
Along with the Women-owned Business Enterprise Loan Program, the Ohio Micro-Loan Program is designed to support and develop minority-owned companies. Startups and existing enterprises are eligible to apply for the micro-loan program, which provides loans at 0% interest. The Ohio micro-loan can be used for working capital, the purchase of machinery, equipment and inventory, and leasehold improvements. Loan sizes range between $10,000 and $45,000.
Your business must be certified by the Ohio Department of Development’s Minority Business Development Division as a Minority-Business Enterprise or a Women-owned Business Enterprise to be eligible for this loan.
- SBA 7(a) Loan Program
If your goal is to acquire an existing business or obtain working capital, the SBA 7(a) loan program might be the best small business loan option for you. The SBA 7(a) loan can also be used to refinance your current business debt and buy supplies, furniture, and equipment.
To be eligible for the SBA 7(a) loan, your company must operate as a for-profit, be able to demonstrate a need, and have already used alternative financial resources before applying for this loan. The maximum loan amount for the SBA 7(a) is $5 million.
- Community Advantage Loan Program
Ohio entrepreneurs who desire to access more credit and who have been denied traditional financing options should consider applying for the Community Advantage Loan. This loan program is ideal for startups or companies in high-risk industries.
The maximum loan amount is $250,000, which can be used for the purchase of new or existing commercial buildings, the expansion or modernization of facilities, augmentation of working capital, debt refinancing, or the financing of additional receivables.
- SBA 504 Loan Program
Should your Ohio small business want to buy or expand an existing building, finance new construction, or purchase machinery and equipment, the SBA 504 loan program is the best loan option for you.
For-profit companies from all industries are eligible for this loan as long as they meet certain qualifications. The SBA 504 loan sizes range from $50,000 to $5 million for regular loans and $5.5 million for manufacturing loans. The benefits of this loan are lower down payments, longer loan terms, and fixed interest rates.
Apply for an Ohio Small Business Loan With Growth Capital
With so many Ohio small business loans to choose from, the process of picking the right ones for your company may seem overwhelming and intimidating. Local certified development companies like Growth Capital Corp. can assist you with your Ohio small business loan application—putting your mind at ease and your business on the fast track to success. Contact Growth Capital to get started today.