Page 18 - OhioRA 2012SpringFlipBook

16 www.ohiorestaurant.org Spring 2012 Issue

While the economy has improved and more banks are lending to small business owners, the ORA understands that access to capital remains tight. As restaurateurs who weathered the storm eye expansion opportunities or improvement projects for their operations, funds to launch these projects are still hard to come by.

In an effort to help small businesses create more jobs for Ohioans, the Ohio Treasury has invested more than $265 million in low-cost fnancing for Ohio small businesses in 85 of the state’s 88 counties since 2010 through its GrowNOW program. In fact, over the past years, GrowNOW participants have received rate reductions on $150 million worth of small business loans and have helped to create or retain more than 6,000 jobs in Ohio.

What is GrowNOW?

GrowNOW is a partnership between eligible banks and the Ohio Treasury. The program enables small business owners to receive up to a 3% interest rate reduction on new or existing small business loans for two years with the opportunity for renewal. Small business owners must commit to the creation or retention of at least one full-time job or two part-time jobs in the state of Ohio for every $50,000 borrowed, up to $400,000. GrowNOW broadly serves as a catalyst for Ohio’s economic development by supporting the small businesses that drive it.

How is the GrowNOW rate reduction determined?

The GrowNOW interest rate reduction will be based on the loan’s interest rate set for each borrower by the bank. If the interest rate is above 5%, the reduction will be 3%. If the interest rate is 5% or below, the reduction will be 2.1%.

What is the goal for GrowNOW and what are its benefts?

GrowNOW makes borrowing more affordable for Ohio’s small businesses, enabling them to remain fnancially stable, hire additional employees or retain their workforce and become more productive.

The benefts of GrowNOW are three-fold:

• The Treasury strategically invests a portion of its portfolio in local economies

• Banks form critical partnerships with local businesses

• Small businesses grow jobs in Ohio’s communities.

Could your business qualify for the program?

In order to qualify for the program, eligible business owners must: 1. Have fewer than 150 employees 2. Be headquartered in Ohio

3. Maintain offces and operating facilities in Ohio 4. Have a majority of employees be Ohio residents 5. Be organized for proft, and

6. Be able to save or create one full-time or two part-time jobs in Ohio for every $50,000 borrowed

What is the process?

1. View a list of eligible banks, which can be found at http://bit.ly/yt7qZ2.

2. Apply for a small business loan at an eligible bank and establish an interest rate.

3. Complete an easy GrowNOW online application with your bank. Paper applications are also available. 4. If approved, the Ohio Treasury places an investment with your bank at a below market-value interest rate. 5. The bank agrees to pass along the interest savings to you through up to a 3% reduction on your small business loan.

Upon submission of your completed application, the Ohio Treasury’s Department of Economic Development typically determines eligibility within 2-3 business days.

One year into the program, participating small businesses are required to complete a brief compliance questionnaire to update the Treasury on their progress and capacity to create or save jobs, which can be completed online by visiting: http://svy.mk/vZTpLK.

To fnd out more about the program, visit the Ohio Treasury site online: http://bit.ly/xHCEQV.

Despite Economic Improvement, Restaurateurs’ Access to Capital Remains Diffcult

Ohio Treasury’s GrowNOW program offers small business owners assistance