HOLMES COUNTY
166 Direct Loan Program
2 Court Street, Suite 21 • Millersburg, Ohio 44611 • (330) 674-8625 • Fax: (330) 674-1582• e-mail: hcpc@valkyrie.net
| The 166
Direct Loan Program (166 Program) was created to promote economic
development, business expansion, and job creation by providing financial
assistance for eligible projects. The Ohio Department of
Development's (ODOD) 166 Program provides loans to businesses willing to
commit to create new jobs or preserve existing employment opportunities in
the State of Ohio.
Eligible businesses include those engaged in manufacturing, research and development, and distribution. While the industry types eligible for assistance under the 166 Program are not limited to the above, retail oriented projects are ineligible. Eligible Project Costs: ** Purchase of land and/or building (If the project involves the purchase of existing building, the business must occupy at least 51 percent of the premises.) ** Purchase of machinery and equipment ** Building construction and/or renovation costs (If the project involves new construction, the business must occupy 75 percent of the premises.) ** Long-term leasehold improvements ** Purchase of an ongoing business' fixed-asset purchase ** Limited soft costs directly related to the fixed-asset purchase Loan Terms: The term of any loan awarded under the 166 Program is conditioned upon the useful life of the assets, with the maximum limits of up to 15 years for real estate and up to 10 years for machinery and equipment. |
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Available Funding: The ODOD, under the 166 Program, may finance up to 30 percent of a project's eligible costs to a maximum of $1,000,000 and a minimum of $350,000. Businesses requesting $350,000 or less may participate in the Regional 166 Direct Loan Program (contact ODOD staff for further information). Interest Rate: Interest rates for the 166 Program are fixed at below market rates and typically do not exceed 2/3 of the current prime rate. Job Creation/Retention: The ODOD requires, under the 166 Program, the creation or retention of one job for each $15,000 ($35,000 in Priority Investment Areas) of loan proceeds within a three-year period. Equity: The ODOD requires, under the 166 Program, a minimum of 10 percent equity. For start-ups and special purpose facilities, the equity requirement may be greater. Collateral: The ODOD requires a shared priority mortgage and/or lien position on assets financed with 166 Program loan proceeds to be established via a multi-party agreement between the participating lender(s), the ODOD, and the borrower. Security Requirements (the following may be required): **Personal guarantees from owners with more than 20 percent ownership in company. **Corporate guarantees from related companies **Full or partial letter of credit **Life insurance on key business owners and/or managers
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