CountyCorp Development’s small business lending program, BizCap, has financing available for companies needing capital to invest in real estate and equipment to retain or grow jobs.
“It comes down to whether a business feels comfortable pulling that trigger on investment,” CountyCorp President Steve Naas said. “We have the ability to help.”
CountyCorp is a private, non-profit development corporation providing housing and economic development programs. Naas said CountyCorp’s average small business loan is $500,000. A small business may have up to 500 employees.
“Banks are limited to lending 75 to 80 percent of a project’s cost. The amount of cash a business has in pocket is limited,” Naas said. “Small businesses are able to finance a larger portion of their project cost by working with us.”
A typical financing structure includes 50 percent from a private lender, a 40 percent BizCap loan and 10 percent investment by the small business, Naas said.
BizCap offers three financing options:
- Small Business Administration 504 loans — available to Ohio businesses — may be used to purchase land, buildings, machinery and equipment, or fund new construction. The maximum loan is $5 million or up to $5.5 million for manufacturers. In most cases, one job must be created within two years for every $65,000 loaned.
- State of Ohio 166 loans — available to Ohio and eastern Indiana businesses — help small, growing manufacturing and distribution companies finance up to $500,000 for land, buildings and equipment. One job must be created within three years for every $50,000 borrowed.
- The Community Development Block Grant revolving loan fund offers real estate, equipment and in some cases working capital funding for smaller businesses. Businesses in Montgomery County, but outside the city of Dayton, may apply. The maximum loan is $100,000. One job must be created within three years for every $35,000 loaned.
“By bringing us in as a partner, a small business is able to reduce its interest costs overall,” Naas said. “We’re at all time low interest rates for all of our programs.”
When Tony Fairchild, president of Adapt-A-Pak, Inc., in Bethel Twp., decided to expand his corrugated packaging business to a second location, his banker suggested he contact CountyCorp. A $337,000 state of Ohio 166 loan through BizCap enabled him to open a reusable packaging manufacturing operation in New Carlisle.
“I got a fixed rate loan with a lower interest rate than I could get from the bank,” Fairchild said. “I would have done it one way or another. CountyCorp helped out from a long-term cost standpoint.”
To learn more about BizCap, contact CountyCorp’s business loan officers Scott Woods at 937-531-7034, or Gary Fischer, 937-531-7038.
Most employers in southwest Ohio fall into the small business category. Look for complete, in-depth coverage of small business topics in this newspaper.