Text AUL to 76278 to Give. A $5 Donation can change a life!

One of the significant challenges for small business owners to start, scale, and expand their small business is the availability of sufficient intermediate and long-term capital to support their working capital and fixed assets requirements.

The Ohio Development Services Agency is an important partner in providing Minority Business Bonding and Direct Loan Guarantee Programs needed to provide our clients with the appropriate intermediate and long-term capital for their businesses.

Minority Business Bonding Program

The Minority Business Bonding Program provides bid, performance, and payment surety bonds to state-certified minority-owned businesses that are unable to obtain bonding through standard surety companies. To qualify for this program, the project must be economically feasible; and the minority business must not have defaulted on a previous bond issued by the Ohio Development Services Agency.

Ohio Minority Business Direct Loan Program

The Ohio Minority Business Direct Loan Program provides fixed, low-interest rate loans to certified minority-owned businesses that are purchasing or improving fixed assets resulting in creating new jobs for Ohioans.

Ohio Capital Access Program

The Ohio Capital Access Program encourages financial institutions to lend to small businesses and nonprofits that may not meet conventional underwriting standards by establishing a loan “guarantee” reserve account to recover losses from loans enrolled in the program. Loan proceeds may be used for working capital lines of credit or the purchase or contribution of fixed assets such as non-residential buildings and equipment.

Collateral Enhancement Program

The Collateral Enhancement Program encourages private lenders to help finance creditworthy businesses that are having difficulty getting the money to expand and create jobs. The program provides lending institutions with cash collateral deposits or fund allocations to back loans made to eligible small businesses.

In addition to these state resources, there are several other alternative funding sources worth exploring, please contact the MBAC team to discuss additional funding options.