Maybe you have an excellent new idea for a business venture, but no money or your current business has grown, and you need money to expand your facilities. Whatever it is, you might be wondering if there is a way for you to get a small business loan in Ohio. If yes, then know that there are multiple resources available to get a small business loan for your business needs.
This article will cover the five best Ohio-based sources of small business loans. No matter what your business needs, these loans will cover all the costs and needs.
5 Best Options For A Small Business Loan in Ohio
Below are the five options Ohio-based small businesses can use for funding.
1. Economic and Community Development Institute
Small business loans in Ohio are available through the Economic and Community Development Institute or ECDI.
If you are looking for a large amount of funding for your business, ECDI can be your best option as it offers as high as $350,000 in capital with lengthy terms expanding to five years.
It involves a $25 application submission fee, and the closing fee will be around 5% of the loan amount. Remember that you will have to attend the required training before being eligible for this small business loan.
2. Huntington National Bank
If you need an SBA loan for your Ohio business, Huntington National Bank is the best option. This bank has been ranked as number one in the top SBA lenders in Ohio list of 2018. However, know that qualifying for an SBA loan is pretty tricky and takes a lot of time.
The business with annual revenue of at least $180,000 has been in the business for at least two years, and their credit is 680+, and they have better chances to qualify for this loan.
Consider applying for other small business loans if you are not quite there yet, as Huntington National Bank may not work for you.
3. Ohio Capital Access Program
Ohio capital access program is run by the Ohio development services agency and provides loan portfolio insurance for participating Ohio state banks.
This loan works much like a loan guarantee in practice. It also provides a pool of funds that a lender can use in the event of a default.
Owing to this backup capital, the lenders are more willing to risk Ohio small businesses. Loans provided through OCAP can be as high as $250,000 for working capital expenses and $350,000 for fixed asset financing. The terms of financing also vary depending on your business requirement.
4. Ohio Minority Business Direct Loan Program
This program is for minority small business owners who want to purchase or improve a fixed asset. Loans under this program come in three parts: 50% of the loan will come from a bank, 40% from the program, and the remaining 10% from owner equity.
This program offers funding from $45,000 to $450,000. It is essential to mention that this amount will be 40% of the total project.
It means Ohio’s small business loan program will be larger than the mentioned amount. The interest rate is also fixed at 3% for the Minority Direct Loans portion.
5. Collateral Enhancement Program
Cash deposit accounts are available through this program to supplement collateral coverage for approved minor business loan applicants.
If your Ohio small business is having difficulties getting a loan because you don’t have enough collateral, this program may be able to help you fill in the gaps.
When applying for any loan, it’s crucial to understand the kind of capital you’ll need.