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

President Biden Seeks to Limit Non-Compete Agreements

July 8, 2021Today, President Biden announced he would issue an Executive Order that calls on the Federal Trade Commission (FTC) to adopt rules to curtail worker non-compete agreements. Interestingly, a week ago, the FTC approved changes to its Rules of Practice to modernize and expedite the way it issues Trade Regulation Rules. If you have followed our alerts, we predicted the elimination of non-competes would probably happen. In 2016, then-Vice President Biden was a vocal opponent against non-compete agreements. He led the Obama administration’s initiative seeking to limit or eliminate non-compete agreements. In his presidential campaign, Biden promised to “work with Congress to eliminate all non-compete agreements, except the very few that are absolutely necessary to protect a narrowly defined category of trade secrets . . ..”Client Alert

New NIL Opportunities for Student-Athletes Require Diligent Review

July 8, 2021On June 28, 2021, Governor Mike DeWine signed Executive Order 2021-10D, “Establishing the Duties of Colleges and Universities as to Name, Image, and Likeness Compensation of Student-Athletes.” The Executive Order was motivated by the passage of similar name, image, and likeness (“NIL”) regulations in seventeen (17) other states; Ohio followed suit to avoid a significant competitive disadvantage in attracting student-athletes to the state.Client Alert

Tax Savings Potentially on the Chopping Block under President Biden’s American Jobs Plan and American Families Plan

June 18, 2021Recently, President Biden has proposed several tax law changes in his American Jobs Plan and American Families Plan. Outlined below, are a few of the tax savings that could be significantly changed or eliminated under Biden’s plans.Client Alert

Here are the Final Candidates for Mayor of Cleveland

June 17, 2021Earlier this year, current Cleveland Mayor, Frank Jackson, announced he would not run for re-election this fall. With no need to beat an incumbent, the Cleveland mayoral race suddenly became competitive. Thirteen individuals declared their intent to run for mayor. The City of Cleveland, however, has a difficult qualification requirement to run: 3,000 valid signatures from Cleveland residents. The deadline to file a petition to run, with the 3,000 valid signatures, had to be submitted by June 16 (yesterday).Client Alert

What Happens to a Pandemic Stimulus Payment Upon Death?

June 14, 2021On January 1, 2021, the federal government issued stimulus payments (also known as Economic Impact Payments) to American citizens – on paper. However, many of the stimulus payments were not received until several months later. Sometimes the stimulus payments did not arrive until after an individual died.
Older posts
Newer posts