Mercer County offers many incentives for the business looking to locate here, or our existing businesses wishing to expand.  We have a very active Revolving Loan Fund which has enabled our companies to create over 900 jobs since its inception.  We have numerous acres of prime land and commercial buildings waiting for you. Our workforce is widely known for its abilities and willingness to get the job done. The result of significant tax reform in the state has substantially lowered the cost of doing business – with the lowest taxes in the Midwest.  Couple local and state incentives and Mercer County’s business climate looks like the place you should be for business growth.  Check out the many programs we can connect you with to grow your business.

FINANCING

Mercer County Revolving Loan Program

Mercer County Community Development Department

Jared C. Ebbing, Community/Economic Development Director

101 N. Main Street – Room 102

Celina, Ohio 45822

419-586-4209

419-586-2963

www.mercercountyconnect.com

This program is funded from the proceeds from grants received from the U.S. Department of Housing and Urban Development and the Ohio Department of Development.  Mercer County has a very active revolving loan fund which has enabled the county created over 900 jobs since its inception.  Eligible borrowers include: Corporations, Partnerships, of Sole Partnerships within Mercer County.

Use of Funds: Fixed assets including land, buildings, machinery & equipment and working capital for an expansion of an existing business or a new start-up business.

• Loan Amount: Up to 50% of the total project cost; maximum $25,000 per job created.  Loan ceiling may be determined by availability of funds.

• Terms & Interest Rates:  Based on the borrowers needs. Interest rate is fixed – below market.  At this time we are loaning at a 3.5% fixed rate.

• Time Frame for Loan Approval:  4-6 weeks, depending how quickly information is received from our borrowers and the degree of the environmental review that must be prepared.

• See the page of requirements needed in order to get the Revolving Loan process completed.

SBA 504 LOAN PROGRAM

Coordinated Through West Central Development Corporation

Robert Huff, Executive Director

Julie Jurosic, Project Manager

419-222-0130

Lima, Ohio

www.wcdcorp.com

The SBA 504 Loan Program provides growing businesses with long-term, fixed-rate financing for major fixed assets, such as land, buildings, and equipment.  Typically, a 504 project includes a loan secured with senior lien from a private-sector lender covering up to 50% of the projects costs, a loan secured with a junior lien from WCPI (backed by a 100% SBA-guaranteed debenture) covering up to 40% of the costs, and a contribution of at least 10% equity from the small business being helped.

Proceeds from 504 loans must be used for fixed asset projects, such as purchasing buildings and land; improvements, including existing buildings, grading, street improvements, utilities, parking lots or landscaping; construction of new facilities, or modernizing, renovating, or converting existing facilities; or purchasing long-term machinery and equipment.  Prevailing wage is not applicable.

SBA 7(A) LOAN GUARANTY

Coordinated through West Central Development Corporation

Lima, Ohio

Robert Huff, Executive Director

Julie Jurosic, Project Manager

Lima, Ohio

419-222-0130

www.wcdcorp.com

SBA 7(a) loan proceeds may be used to establish a new business or to assist in the operation, acquisition, or expansion of an existing business.  These include (non-exclusive):

• To purchase land or buildings, to cover new construction, as well as expansion or conversion of existing facilities;
• To acquire equipment, machinery, furniture, fixtures, supplies, or materials;
• For long-term working capital, including the payment of accounts payable and/or for the purchase of inventory;
• To refinance existing business indebtedness, which is not already structured with reasonable terms and conditions;
• For short-term working capital needs, including: seasonal financing, contract performance, construction financing, export productions, and for financing against existing inventory and receivables under special conditions; or

REGIONAL 166 LOAN PROGRAM

Coordinated through West Central Development Corporation

Lima, Ohio

Robert Huff, Executive Director

Julie Jurosic, Project Manager

Lima, Ohio

419-222-0130

www.wcdcorp.com

The Regional 166 Loan Program provides funding for manufacturing businesses locating or expanding in Ohio.  Eligible projects include land and building acquisition, new construction, renovation or expansion of an existing building, or acquiring new or used machinery and equipment.  Typically, a Regional 166 Loan project includes a loan secured with a senior lien from a private-sector lender covering up to 50% of the project costs, and a contribution of at least 10% equity from the business being helped.  Proceeds from the Regional 166 Loan cannot exceed $350,000 or up to $35,000 for each new full-time job created during the first three years of the project, whichever is less.  Ohio prevailing wage rate applies to all new construction, renovation, and installation of machinery and equipment.

DIRECT 166 LOAN PROGRAM

Jerry Good

Governor’s Economic Development Representative, Region III

jerry.good@development.ohio.gov

Lima, Ohio

419-229-5320

Direct loan financing available to help finance manufacturing and other eligible facilities with eligible uses for funding including new building construction, building acquisition, and acquisition of machinery and equipment.  Amounts of financing are usually set at 30 percent of the project cost to a maximum of $1 million, with a minimum loan amount of $350,000.  The rate is usually 3% with terms similar to those of commercial bank financing.  Eligible projects must involve significant job creation or retention.

MIDWEST ELECTRIC REVOLVING LOAN FUND

Matt Berry

060029 County Road 33A

St. Marys, Ohio

Phone: 419-394-4110 or 800-962-3830

www.midwest.com

Midwest Electric Administers a Rural Development Revolving Loan Fund (RLF) to promote and assist in economic development activities in rural west central Ohio.  The RLF will be used to provide community development assistance to nonprofit entities, businesses, and public bodies for employment creation projects, or other projects which provide needed community facilities and services.  The RLF is a low-interest financing loan program intended to fill capital financing gaps in order to encourage economic development.

TOLEDO-LUCAS COUNTY PORT AUTHORITY

Lisa Wagner

One Maritime Plaza

Toledo, Ohio

419-243-8251

Mercer County is a participating community in the Toledo –Lucas Port Authority.  The Port Authority has developed a national reputation for innovative business financing including fixed interest rate revenue bonds, off-balance sheet transactions, infrastructure financing, and conduit revenue bonds.

INCENTIVES

Job Creation Tax Credit  (JCTC)

The Job Creation Tax Credit is a refundable tax credit to companies creating at least 25 new full-time jobs (within 3 years) in Ohio. The credit may also be available for certain high-wage industries creating 10 or more new full-time jobs within 3 years. The refundable tax credit is measured as a percentage of the state income tax withholdings for all new employees hired under the program, and is applied toward the company’s commercial activity tax liability. Should the amount of the credit exceed the company’s CAT liability for any given year, the difference is refunded. Approved projects generally range between a 25 and 55 percent credit for a period of 5 to 7 years. The business must apply for the credit before committing to the project.

Job Retention Tax Credit  (JRTC)

The Job Retention Tax Credit is a non-refundable tax credit to companies retaining at least 1,000 full-time jobs in Ohio. Companies must also commit to new fixed-asset investment of either $100 million, if the average wages of the retained jobs exceed 400 percent of the federal minimum wage (equal to $20.60 per hour), or $200 million, if the average wages of the retained jobs does not exceed 400 percent of the federal minimum wage. The credit is measured as a percentage of the state income tax withholdings for all employees retained under the program. Approved projects generally range up to 75 percent for 10 years. The business must apply for the credit before committing to the project.

Tax Abatement

Mercer County has certified 13 zones in within the county for the purpose of grantin abatement on real property improvement projects.  Application forms can be obtained through Mercer County Community Development or downloaded on our Resource drop down located on the front page of our website.  See the enterprise zone map.

Research and Development Investment Tax Credit

The R & D Investment Tax Credit is a non-refundable Ohio commercial activity tax credit for all investment in qualified research expenses incurred in Ohio by eligible “C” corporations.  Qualified research expenses are based on Section 41 definitions in the U.S. Internal Revenue Code and include expenses for both in-house and contract research expenses.  The amount of the credit is based on 7 percent of the amount of all qualified investment in a specific year.  The credit can be carried forward for up to seven years.

Roadwork Development (629)

These grant funds are available for public roadway improvements, including engineering and design costs.  This fund is available for projects primarily involving manufacturing, R&D, high technology, corporate headquarters and distribution activity.

Community Development Block Grant

• Federal grant funds are available through the state to assist with public road, water, and sanitary sewer improvements specifically benefiting economic development projects.  Job creation must be involved and companies must commit to hiring at least 51% of employees from low-to-moderate income populations in the county where the project is located.

Rapid Outreach Grants

• These funds are for on or off site infrastructure improvements, including water, sewer, road and rail improvements.  This fund is for companies primarily engaged in manufacturing, R & D, high technology, corporate headquarters, and distribution.   Job creation or retention must be significant and all other sources of private and public financing must be considered first.

Ohio Enterprise Bond Fund

• Provides loans for land and building acquisition, construction, expansion or renovation and equipment purchases for eligible businesses.

Volume Cap

• Provides allocations to eligible issuers the ability to issue tax exempt Private Activity Bonds up to a state limit known as “Volume Cap” that is determined annually on a per capita basis for projects consisting of multi-family housing, single-family housing, exempt facilities, manufacturing and student loan bonds.

GrowNOW Program

• GrowNOW is a partnership between the State’s eligible banks and the Ohio Treasury.  The program enables small business owners to receive up to a 3% interest rate reduction on a bank loan when they link the loan to job growth or retention in the State of Ohio.  GrowNOW also serves as a catalyst for Ohio’s economic development and rewards the small business that drives it.

Workforce Guarantee Program

Ohio Department of Development

Dan Reynolds

614-466-4155

daniel.reynolds@development.ohio.gov

• The goal of the Workforce Guarantee Program is to provide 100 percent reimbursable training grants to employers in targeted industry sectors that are creating at least 20 job positions with qualified entry-level and incumbent workers.  Projects will be funded up to $750,000 and the amount per project will be determined on a threshold training investment of $3,000 per participant.

Ohio Investment and Training Program

Ohio Department of Development

Dan Reynolds

614-466-4155

Daniel.reynolds@development.ohio.gov

• Provide 50 percent reimbursable training grants directly to Ohio companies when companies make investments that create or retain jobs.  The program is formula-based dependent on average hourly wage and number of trainees.

Workforce Investment Act (WIA)

Tim McCourtie

220 W. Livingston Street – Room B 272

Celina, Ohio 45822

419-586-6409

Other State Incentive Program

• Bureau of Worker’s Compensation Premium Discounts
• Research and Development Investment Tax Credit
• Further information about the above incentive programs can be found at:
• http://development.ohio.gov/Business/Loans_Grants.htm

http://ohiomeansbusiness.com/