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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

Your Workplace Under Biden

November 9, 2020This is my favorite recurring post – Predictions of How a New Administration Will Affect Your Workplace. Four years ago, we accurately called the emasculation of the 2016 proposed FLSA Overtime Rules (the salary exemption threshold was set at $35,568 in 2019, rather than $47,476 as proposed), we forecasted a conservative shift of the NLRB and its results (a roll-back of employee rights, social media policy evaluations, and joint employer rules), and we nailed the likelihood of multiple conservative appointments to the United States Supreme Court and its long-term effects (although I completely failed to predict that my ND classmate Amy Coney Barrett would fill the final vacancy during the Trump administration). This time, the L+E Practice of BMD has decided to make it a group effort at predicting what will happen, what probably happen, and what might happen under President Biden. As always, please save this in your important files and pull it out four (or eight) years from now to judge our accuracy.Client Alert

HHS Provider Relief Funds Reporting Requirements: Important Updates Every Provider Should Know

November 4, 2020HHS continues to revise its reporting requirements for the use of the Provider Relief Funds. Providers with more than $10,000 in Provider Relief Fund payments must report on the use of the funds through December 31, 2020. The reporting window will begin on January 15, 2021 and providers must complete reporting obligations for FY 2020 by February 15, 2021 through a portal designed by HHS. However, providers that have unexpended funds as of December 31, 2020, will have an additional 6 months to use the remaining funds through June 30, 2021. These providers must submit a second and final report no later than July 31, 2021.Client Alert

Should I Apply for Phase 3 Funds? Important Considerations Every Provider Should Know

November 2, 2020On October 1, 2020, the Department of Health and Human Services (“HHS”) announced an additional $20 billion in new funding for providers through a Phase 3 distribution. Importantly, providers that previously received HHS Provider Relief Funds or already received payments of approximately 2% of annual revenue from patient care are eligible to apply. Eligible providers have until November 6, 2020 to apply for these Phase 3 Funds. However, the question from providers continues to be: Should I Apply for Phase 3 Funds?Client Alert

CISA Ransomware Practices

October 29, 2020On October 28, 2020, the United States Cybersecurity and Infrastructure Security Agency (CISA) issued an alert warning of imminent threats to US hospitals and healthcare providers. The specific threat involves RYUK Ransomware attacks. RYUK is a novel ransomware that goes undetected by commercial anti-virus/malware detection programs. Once deployed, RYUK encrypts all data and disables systems. In short, it cripples all functionality down to phone systems and automated doors. Healthcare providers should alert their employees to remain hyper-vigilant and report any suspicious activity seen in email or on networks. It has been reported healthcare providers in New York, Pennsylvania and Oregon have been targeted in the last 48 hours. If your organization encounters issues, BMD can assist in mobilizing a response team and has contacts with forensic IT firms that are familiar with RYUK. It is advisable to engage professionals with experience dealing with this specific threat.Client Alert

HHS Announces an Additional $20 Billion In Provider Relief Grants

October 5, 2020The U.S. Department of Health and Human Services (“HHS”) announced an additional $20 billion in new funding for providers on October 1, 2020. Eligible providers include those that have already received Provider Relief Fund payments as well as previously ineligible providers, such as those who began practicing in 2020, and an expanded group of behavioral health providers confronting the emergence of increased mental health and substance use issues exacerbated by the pandemic. The new Phase 3 General Distribution is designed to balance an equitable payment of 2% of annual revenue from patient care for all applicants plus an add-on payment to account for revenue losses and expenses attributable to COVID-19.
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