Regional 166 Loan Program
The Regional 166 loan program offers many advantages for manufacturers seeking financing for their projects. The Regional 166 is available throughout Ohio and offers low fixed rates and flexible terms. That means lower monthly payments that leave you with more cash on hand to run your business. To find out if the Regional 166 loan program could assist your business, just click on some of the questions below:
What kinds of businesses are eligible for a Regional 166 loan?
Eligible businesses must be a manufacturing or distribution concern. In addition, those businesses must be owner-occupied, for-profit, and located within the State of Ohio. (back to top)
What projects can be funded by a Regional 166?
Manufacturers may use funds from a Regional 166 to finance land and building acquisition, new construction, renovation projects, or new or used equipment purchases. (back to top)
Are there any other requirements for obtaining a Regional 166 loan?
The Ohio Department of Development does require eligible businesses to create one job for every $35,000 borrowed. Personal guarantees will be required from all individuals with 20% and greater ownership. Borrowers may also be required to provide an assignment of a life insurance policy to cover the outstanding balance of the loan. Prevailing wage rates apply for any project involving labor. (back to top)
How much can my business borrow & what is the down payment?
Manufacturers seeking a Regional 166 loan must provide a minimum of 10% of the project cost. The Regional 166 loan requires a shared first-lien position with the private lender and can fund a maximum of 40% of the project costs, up to $350,000. The business then works with a private-sector lender to finance the balance of the project costs. (back to top)
What kind of rate can I expect?
The Regional 166 offers a fixed rate for the term of the loan. That rate will be two-thirds of Prime as published in the Wall Street Journal. To view the current prime rate, visit the rate tracker on our home page. (back to top)
My company is located in an ODOD Priority Investment area. Does this program provide me with additional benefits because of this designation?
Yes. Borrowers located within ODOD Priority Investment areas are eligible to receive a maximum of 75% of the project costs through the Regional 166 loan program, up to $350,000. Additionally, the rate for a business located in these designated areas is fixed for the term of the loan at one-half of prime. Click here to see a map of ODOD Priority Investment areas. (back to top)
What are the terms of a Regional 166?
The term is set based on the useful life of the assets being financed and on the term of the private sector financing. The term on real estate cannot exceed 15 years while the term on machinery or equipment purchases cannot exceed 7 years. (back to top)
Are there fees associated with the Regional 166?
There is an application fee of $500. The borrower is also responsible for all attorney and closing fees, which are approximately $1,500. (back to top)
Is there a prepayment penalty?
No. Your Regional 166 loan can be prepaid in part or in full at any time without penalty. (back to top)
Is it difficult to apply?
No. All you need to do is provide us with the same information given to financial institutions for traditional financing and our experienced staff will prepare the application to the Ohio Department of Development on your behalf. (back to top)
How long is the approval process?
Upon completion of your application, it usually takes no more than two weeks for the loan committee to review your request. Once approved, we forward your application to the Ohio Department of Development for their approval. (back to top)
Is there a pre-approval process?
Yes. In order to assure that your business is eligible for financing, we will provide you with a pre-approval within 2 business days of receiving your complete financial package. (back to top)
What happens after approval?
After approval, the bank funds the project in the interim until it is completed. (back to top)
When can my Regional 166 loan close?
The following conditions must be met prior to closing:
ü Construction/renovation is completed
ü All equipment is in place and operational
ü All bank loan proceeds have been spent
ü You have made your equity contribution
Contact us if you are ready to close your loan. (back to top)
When will I receive the funds from my Regional 166 loan?
Funding occurs immediately upon an adequate closing. (back to top)
How do I apply?
It’s simple. Just call us at 419-222-0130 or contact us by email and we’ll be happy to get your application started. (back to top)