Small businesses get boost from state
Thursday, March 06, 2008
Small businesses account for a big slice of Ohio's jobs and the state has expanded a program that provides interest-rate cuts on financing for those companies, Treasurer Richard Cordray said Wednesday, March 5.
Cordray made his remarks to the National Federation of Independent Business-Ohio's area action council. His stop in Dayton was part of a statewide sweep to tout GrowNOW, the interest-rate reduction program administered through his office.
Extras
The program has been in place for 25 years, but Cordray's office has renamed it GrowNOW, raised the loan ceilings and made other changes. Aimed at companies with 150 or fewer employees and an Ohio headquarters, the program can be applied to loans up to $400,000 and the jobs-to-dollars ratio was doubled to $50,000 per job.
In 2006, some 902,500 businesses were operating in Ohio, according to the treasurer's office.
Nearly half of Ohio's private-sector workers are employed by small businesses, state officials said.
Also Tuesday, Cordray told business leaders that while the state has lost manufacturing jobs, including hard-to-replace jobs with high wages, it still has a strong manufacturing base. He blamed higher productivity from technology for some of the lost jobs.
Recent spikes in oil prices and the increasing interest in alternative fuels could give a boost to Ohio manufacturers and farmers who make products for the alternative fuel market, Cordray said.
How it works
State officials say GrowNOW allows the treasurer to use up to 12 percent of the state's investment portfolio to purchase reduced-rate certificates of deposit at local banks. The banks must then pass along the interest rate reduction-up to three percent for a two year period-to small businesses to create or retain jobs.
Applications can be taken online at grownow.ohio.gov. The treasurer's office approves applications within 48 hours.
Small businesses must apply for and receive a loan on their own. The bank and the business owner then apply for the interest-rate reduction. If approved, the state treasury will place a certificate of deposit with the bank at a 3 percent interest rate. The bank passes along the interest savings to the business owner's loan.
For information, call Amanda Hoyt at (614) 466-6546.
Contact this reporter at (937) 225-7317 or ttresslar@DaytonDailyNews.com.
