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

The Ohio Board of Pharmacy’s Latest Batch of Rules: What Providers Should Know

January 15, 2024The Ohio Board of Pharmacy released several new rules and proposed amendments to existing rules over the past month that will significantly impact pharmacy operations. Topics range from updates to the Terminal Distributor of Dangerous Drugs license to mobile clinics to mandatory rest breaks for pharmacists of outpatient pharmacies. A summary of the proposed changes is below, along with instructions for commenting on the rules. Your BMD healthcare attorney can help write comment letters and submit the comments on your behalf as well.Client Alert

Employee or Independent Contractor? New Guidance Issued by the Department of Labor

January 10, 2024On January 9, 2024, the U.S. Department of Labor (DOL) issued its long-awaited final rule — effective March 11, 2024 — revising its prior interpretation of worker classifications under the federal Fair Labor Standards Act (FLSA). The new final rule rescinds the standard previously established in 2021, in turn, shifting the analysis of whether a worker is an employee (versus an independent contractor) of a business from a more streamlined “economic reality” test to a more complex “totality of the circumstances” standard.Client Alert

Increased Medicaid Rates to Take Effect This Month for Ohio Providers

January 5, 2024As required by House Bill 33, Ohio’s 2024-2025 operating budget bill, reimbursement rates paid by the Ohio Department of Medicaid will increase for a wide range of providers starting on January 1, 2024.Client Alert

Corporate Transparency Act Update

December 27, 2023The Corporate Transparency Act (“CTA”), with an effective date of January 1, 2024, is set to impose strict reporting guidelines on business owners throughout the country. The following provides a brief update on two aspects of the CTA ahead of its effectiveness next week.Client Alert

The Second Wave of UnitedHealthcare's Prior Authorization Cuts Started in November

December 11, 2023In August 2023, UnitedHealthcare released its plan to eliminate roughly one-fifth of its then-current prior authorization requirements. The first round of prior authorization cuts took effect on September 1, 2023. In that round, UnitedHealthcare eliminated the necessity for some prior authorizations for UnitedHealthcare Medicare Advantage, UnitedHealthcare commercial, UnitedHealthcare Oxford and UnitedHealthcare Individual Exchange plan members. The second and final round of prior authorization cuts began on November 1, 2023. The November 2023 Prior Authorization Cuts apply to the same plans as well as community plans (i.e., Medicaid managed care plans).
Older posts
Newer posts