• Skip to primary navigation
  • Skip to main content
  • Skip to footer
  • (216) 592-2332
Facebook Linkedin Twitter
Inquire Now!
Small business loan resources in ohio
  • About Us
  • Programs
    • SBA 504 Loan Program
    • Community Advantage
  • Community
    • Events
    • Event Photo Gallery
  • Small Business Resources
  • Contact Us
  • Blog
Menu
  • About Us
  • Programs
    • SBA 504 Loan Program
    • Community Advantage
  • Community
    • Events
    • Event Photo Gallery
  • Small Business Resources
  • Contact Us
  • Blog
Search
Close

What owners need to know about the Ohio Regional 166 Direct Loan Program

The Ohio Regional 166 Direct Loan Program offers particular benefits for borrowers.

You are here: Home / Banking News / What owners need to know about the Ohio Regional 166 Direct Loan Program

February 26, 2016 by boardmember1 Leave a Comment

What are the pros and cons of the Regional 166, and why should business owners prefer it over other options? Growth Capital Corp. offers information and support for those who require consultation before beginning the program.

While this loan doesn’t pertain to retail projects, it does include a relatively wide range of project areas, making it a possibility for local construction projects, equipment financing and other necessary tasks.

alt textA Regional 166 loan could offer multiple benefits to Ohio owners.

The following summary will give businesses a chance to learn more about this loan offering and decide whether or not it’s right for them.

Qualifications
Businesses need to be aware of their own eligibility and whether or not their intended use fits within the parameters of the loan. The Ohio Development Services Agency (ODSA) states that “industry, commerce, distribution or research activities” are possible project areas where the Regional 166 can apply. For-profit businesses that operate in these areas, as well as manufacturing, could also meet the guidelines.

If entities want to purchase existing land or buildings, more than 50 percent of premises have to be devoted to the business itself. With new construction, this must account for more than 60 percent of the building’s premises.

Another criterion to keep in mind is the job creation that will result from the loan money. According to the ODSA, funded projects have to generate jobs, with at least one per every $50,000 borrowed, and the project costs require a 10 percent minimum equity contribution.

Though there’s no prepayment penalty, this loan does come with processing, application and annual service fees. Finally, there are collateral concerns, including personal and corporate guarantees, life insurance and a letter of credit.

Length of Loan
Depending on the type of project the loan is needed for, Regional 166 loans can have terms as long as 15 years. This lengthy period can be a comparative advantage when considered alongside other possible loan options. This and the other long-term effects may influence business owners to consider the ongoing costs and expectations.

Interest Rate
One of the notable advantages of this program, the Regional 166 interest rate is offered at a fixed rate under the market standard. Its low payments is another benefit. The size of the initial loan can range as high as $500,000, with rates and fees negotiable between the loan recipient and the bank officer. A bank involved will supply the borrower with an interim loan. In some areas, the interest rate could be as low as 3 percent, with most fixed at two thirds of the current prime rate.

Learn more about this and other Ohio small business loans by reading the Growth Capital Corp. website, or sign up for the mailing list for future updates. Click here to contact us and get more information about our headquarters.

Banking News Ohio Regional 166,  small business funding,  small business loans

Reader Interactions

Leave a Reply Cancel reply

You must be logged in to post a comment.

Social

Follow along on social media.

Contact

IMG Center
1360 East Ninth Street, Suite 950
Cleveland, Ohio 44114

  • Get Directions
  • (216) 592-2332
  • Contact

Navigation

  • Have A Loan?
  • Small Business Loan Programs
  • Loan Calculator
  • Community
  • Small Business Resources
  • Annual & Loan Activity Reports
  • Blog
  • Our History
  • Events
  • Contact Us
  • Have A Loan?
  • Small Business Loan Programs
  • Loan Calculator
  • Community
  • Small Business Resources
  • Annual & Loan Activity Reports
  • Blog
  • Our History
  • Events
  • Contact Us

Newsletter

Stay up to date by subscribing to our newsletter.
Click here to sign up

© Copyright 2022 Growth Capital Corp · All Rights Reserved · Website designed by Jennasis & Associates