NORTHEAST OHIO ECONOMIC DEVELOPMENT RESOURCES PRESENTED BY THOMAS JORDAN, E.D.F.P.

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1 NORTHEAST OHIO ECONOMIC DEVELOPMENT RESOURCES PRESENTED BY THOMAS JORDAN, E.D.F.P.

2 START UPS E.C.D.I. Economic and Community Development Institute This is a micro-loan program for entrepreneurs or microbusinesses. Loan size can be up to $50,000. Proceeds can be used for any business purpose. Business counseling may be available to discuss the business plan. Contact: Emily Sullivan, or esullivan@ecdi.org

3 FEDERAL PROGRAMS SBA (Small Business Administration) 7 (a) This is a loan program; funds can be used for any business purpose. The borrower begins the process at any bank, and negotiates rate and term. The SBA guarantees a portion (typically 75%) of the loan, so this is most useful in borderline cases, or to negotiate a better rate. Additional details: applicant must be a for-profit business; the maximum business size for SBA loans is determined by annual sales or # of employees, depending on NAICS/SIC Code. ww.sba.gov Contact: Local banks

4 STATE PROGRAMS State of Ohio Treasurer s Grow Now Maximum loan amount is $400,000: One job must be created or retained per each $50,000 borrowed. The borrower begins the process at any participating bank and negotiates the rate and term. The bank then approaches the State; if approved, the State deposits a like amount in the bank. Interest rates to the borrower are reduced by up to three percentage points (depends on the original rate) vs. the original rate, for two years. There is an opportunity for renewal beyond two years. Contact: local participating banks, or

5 REGIONAL OHIO 166 Application is made both to the company s bank and to Growth Capital Corp. (GCC) our area s Certified Development Company. The bank provides 60% of the project costs, at rate and term negotiated by the borrower. The State of Ohio/GCC provides 30% of the project costs, typically at 3% rate, and a term to match the bank up to ten years for machinery and equipment and 15 years for real estate. The owner provides a 10% equity contribution to the project. Loan sizes can range from $25,000 to $500,000; larger loans proceed directly to the State via the Direct 166 Program, where loan size is capped at $1.5 million. Contact: Growth Capital Corp.,

6 County Programs Grow Cuyahoga County Fund This is a term loan variant of the SBA 7(a) program. In conjunction with the County, the National Development Council operates the fund, which can typically loan from $100,000 to $2M; the loan can cover 90% of the project, with the balance owner s equity. Loan proceeds can be for any business purpose, including leasehold improvements. Rates are in the range of Prime-plus; term can be up to 25 years, depending on use. Additional Details: Applicant must be a for-profit business Maximum sales average over the last three years Owners of 20% or greater must sign a personal guarantee Contact: Sheldon Bartel, Grow America Fund,

7 CUYAHOGA COUNTY WESTERN RESERVE FUND The County has developed a $100M fund to assist with many aspects of business development. The three priority areas for investment include: 1. Innovation Development 2. Commercial Property Reutilization, Expansion & Acquisition 3. Business Growth, Commercialization & Attraction Contact: CC Department of Development,

8 NON-PROFIT ORGANIZATIONS Growth Capital SBA Community Advantage Loan Loan guarantee program Maximum loan size is $250,000/ interest Prime + 6% Eligible borrowers are manufacturing, distribution, wholesale, commerce or service, for-profit businesses Additional Details: 1. Must be for-profit business 2. Owners of 20% or greater of company 3. First lien position will be sought Contact: Growth Capital Corp.,

9 10,000 SMALL BUSINESSES In conjunction with Tri-C, this national program provides business advice and education, technical assistance and access to capital for 30 businesses per year that participate in a series of educational sessions. Term loans can be considered for companies completing the program, in amounts up to $250,000; loans can be for any business purpose, including working capital. The educational program is free courtesy of scholarships from the Goldman Sachs Foundation. Additional Details: Businesses must have been in operation for at least 2 years Businesses must have at least 4 employees Revenues between $150,000 and $4M Contact: Kirby Freeman, or Kirby.freeman@tri-c.edu

10 BUSINESS LOAN CHECKLIST Personal Background: previous address, names used, educational background, etc. Resumes: business experience, or management experience Business Plan: Complete set of projected financial statements, cash flow and a balance sheet Personal Credit Report: Three major agencies required Business Credit Report Income Tax Returns: Personal and Business for 3 years Financial Statements Bank Statements: personal and business Collateral Legal Documents 1. Business licenses/registrations 2. Articles of incorporation 3. Copies of contracts with third parties 4. Franchise agreements 5. Commercial leases

11 NORTH ROYALTON MASTER PLAN The North Royalton City Charter requires periodic review and revisions, if necessary, of the Master Plan adopted in The purpose of updating the Master Plan is to document the changes that have occurred within the City and the region since 2004 and to update and revise as needed the strategies that will achieve the overall goals for the City. Master Plan will be completed by the end of 2013

12 2013 STOREFRONT RENOVATION CUYAHOGA COUNTY STOREFRONT RENOVATION PROGRAM CHECKLIST Approved, signed Pre-application. Two itemized, competitive and comparable bids, from two different contractors, for work to be completed within each category in accordance with current prevailing wage ( Copy of Secretary of State of Ohio Business name identification form. Go to Click Business Services. Click Business Name Search. Completed W-9 form. Copy of the completed Cuyahoga County Contractor Registration Form at Follow the instructions for exempt contractor registration and ethics ordinance certification. Copy of Auditor of State Unresolved Findings for Recovery Certified Search at Copy of Cuyahoga County property tax status at US/REPI.aspx. Copy of current Ohio Bureau of Workers Compensation Certificate. Copy of Commercial Certificate of Liability Insurance listing Cuyahoga County and Its Employees (1219 Ontario Street, Cleveland, OH 44113) as additionally insured. Completed Signature Authority form. A completed and signed contract.

13 2013 Storefront Renovation Ineligible Properties contain businesses that are: Chains an entity that cannot be purchased by an individual, but can be managed by an individual under the authority of a corporation. Banks, Savings and Loans Educational institutions (public, private or charter) Religious or Religious affiliation Stand alone Franchise businesses (i.e. McDonald s, Jiffy Lube, etc.) Owned or occupied by public agency Ineligible Structures include: New construction of any kind Industrial Residential Ineligible Storefront Renovation Activities: Landscaping/Fencing Paving of any kind No concrete or asphalt or other paving materials. Seal coating and re-striping of parking lots and driveways. Interior improvements Security systems Purchase of furnishings, equipment, or other personal property which does not become part of the real estate. Developer fees

14 IMPROVEMENT TARGET AREA

15 Thomas J. Jordan Community Development Director As always, if you have any questions or require additional information, please contact me at: or Royalton Road