Resources

Client Alerts, News Articles, Blog Posts, & Multimedia

Everything you need to know about BMD and the industry.

Ohio Loan Programs to Boost Minority-Owned Businesses

Client Alert
January 26, 2022

Ohio has created two new loan programs to enhance growth of minority and women owned businesses in Ohio. The Ohio 2022-2023 operating budget includes the Women’s Business Enterprise Loan Program and Ohio Micro-Loan Program. 

The Women’s Business Enterprise (WBE) loan Program will offer loans at or below market rate interest (currently are up to 3%). The minimum loan amount is $45,000 up to a maximum of $500,000. Loans will be repaid within 10 years for equipment and machinery and 15 years for owner-occupied real estate. 

To become certified as a WBE, a business must be owned and controlled by a woman who is a U.S. citizen and has an established residency in the state of Ohio or a reciprocal state. Additionally, a business must have been in business for at least one year prior to applying for a loan and must be at least 51% woman-owned. The business owner must (a) possess requisite knowledge of the business and industry in which she is applying; (b) have day-to-day control over the business, exercising final authority over all aspects of daily operations; and (c) possess all licenses and permits required by law to perform the scope of work within classifications requested. 

If a business meets the requirements to become a WBE, then the business can complete an application and provide supporting documentation to be submitted to the Ohio Department of Administrative Services, Equal Opportunity Division (@ das-eod.bccu@das.ohio.gov.). It should be noted that applications are subject to an interview and possible onsite review by state compliance officers. Reviews take an average of 60 to 90 business days from the time a completed application is submitted. There will be a $300 application fee and a commitment fee of 1.5% of the loan amount. Keep in mind that expediated applications are available if the applicant (a) submits an expediated application and (b) provide a valid certificate with an approved program issued by a reciprocal state or partnering agency. Upon application approval, the company receives its WBE-certification by email. 

The other new loan program is the Ohio-Micro Loan Program. This loan program was created to stimulate the growth of new and existing businesses by providing micro-loans at 0% interest. The minimum loan amount is $10,000 to a maximum of $45,000. Loans will be repaid within 5 years for permanent working capital and 7 years for equipment. To qualify for this loan, businesses must be certified as a WBE or Minority Business Enterprise (MBE). 

In order to become qualified as an MBE, the business must be owned and controlled by a U.S. citizen who is a resident of Ohio and a member of one or more of these minority groups: Blacks or African Americans, American Indians, Hispanics or Latinos, and Asians. In addition to that requirement, a business must: 

  • have been in business for at least one year prior to applying; and
  • be at least 51% minority-owned 

Furthermore, the business owner must:

  • possess requisite knowledge of the business and industry in which he or she is applying;
  • must have day-to-day control over the business, exercising final authority over all aspects of daily operations (operations, financial and business management, human resources and policy decisions);
  • must demonstrate capability or expertise within the classifications identified for a period of one year prior to certification; and
  • possess all licenses and permits required by law to perform the scope of work within classifications requested 

If a business meets the requirements to become an MBE, then the business can complete a Unified Application through the Ohio Business Gateway and provide supporting documentation. Like the WBE process, applicants are subject to on-site review by state compliance officers. Reviews take an average of 60 business days or less from the time a completed application is submitted. Upon application approval, the company receives its MBE-certification by email. 

These two new loan programs will be administered by the Ohio Department of Development through the Minority Business Development Division. The Women’s Business Enterprise Loan Program and Ohio Micro-Loan Program are additions to the Ohio Minority Business Bonding Program, the Ohio Minority Business Direct Loan Program, the Collateral Enhancement Program, and the Ohio Capital Access Program.           

Ohio has shown a significant interest in working with minority businesses to help them achieve scale and market success. Your business could be positively impacted by qualifying and receiving loans allocated to minority businesses. If you have a minority business and need guidance applying for loans, please contact BMD Corporate and Mergers and Acquisitions Attorney Bakita E. Hill, Esq. at behill@bmdllc.com.

bakita hillminority-ownedwoman-ownedwbeloansbusiness and corporate law
Client Alert

Corporate Transparency Act Effective Again

February 20, 2025The federal judiciary has issued multiple rulings on the enforceability of the Corporate Transparency Act (CTA), which took effect on January 1, 2024. Previously, enforcement was halted nationwide due to litigation in Smith v. U.S. Department of the Treasury. However, on February 18th, the court lifted the stay, reinstating the CTA’s reporting requirements. Non-exempt entities now have until March 21, 2025, to comply. Businesses should act promptly to avoid civil penalties of $591 per day and potential criminal liability.Client Alert

Status Update: Physician Noncompete Agreements in Ohio

February 11, 2025Noncompete agreements remain enforceable in Ohio if they meet specific legal requirements. While the AMA and FTC have challenged these restrictions, courts continue to uphold reasonable noncompete provisions for physicians. Recent cases, like MetroHealth System v. Khandelwal, highlight how courts may modify overly restrictive agreements to balance employer interests with patient care. With ongoing legal challenges to the FTC’s proposed ban, Ohio physicians should consult a healthcare attorney before signing or challenging a noncompete agreement.Client Alert

Immigration Orders and Their Economic Impact on Small Business: Insights from Attorney and Former Immigration Judge Rob Ratliff

January 30, 2025President Trump's recent executive orders, targeting immigration policies, could significantly impact small businesses in Ohio, particularly those owned by undocumented immigrants. With stricter visa vetting, halted refugee admissions, and potential deportations, these businesses face uncertainty, workforce disruption, and closures. Ohio's immigrant-owned businesses, especially in food services and transportation, contribute billions to the state economy, and any disruption could result in economic ripple effects.Client Alert

Corporate Transparency Act Ruling from the U.S. Supreme Court

January 24, 2025The U.S. Supreme Court recently ruled on the enforceability of the Corporate Transparency Act (CTA), lifting an injunction previously imposed by the Fifth Circuit. However, a separate nationwide injunction remains in effect, meaning businesses are still not required to comply with the CTA’s reporting requirements. FinCEN continues to accept voluntary reporting while enforcement remains paused.Client Alert

Lead Paint Contamination and Resources for Ohio Landlords

January 20, 2025Children are exposed to lead-based paint, which was used in most homes until it was banned in the US in 1978 and “can severely damage the brain and central nervous system causing coma, convulsions and even death.” Property owners and landlords should educate themselves on regulations and resources to mitigate their own liability.
Older posts
Newer posts