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ReEnergize Ohio Bankers

How does ReEnergize Ohio work?
ReEnergize Ohio encourages small businesses to make facility improvements, and upgrades by offering an interest rate reduction on commercial loans. The program functions within the existing Treasurer’s office linked deposit model. 

The Treasurer’s office places an investment at the eligible public depository where the small business has taken out a loan. The Treasury agrees to take a lower rate of return on the investment and the financial institution agrees to pass along their savings to their borrower in the form of an interest rate reduction. 

In order to participate, the lending institution must be a state depository bank. If you would like to participate but are not yet a depository bank, please visit our Financial Institutions webpage.

The lending institution will use its usual lending standards and guidelines to determine the credit-worthiness of the potential borrower. The term and size of the loan is solely decided on by the lender. The Treasurer’s office can provide the rate reduction for four years of the loan, up to $550,000. The rate reduction cannot be renewed.

After review of the completed ReEnergize Ohio application and accompanying supporting documentation of property improvements and upgrades to be completed or implemented, the Treasurer’s office will notify the lenders of approval or denial of the ReEnergize Ohio application. If a business is using a contractor, a firm quote or contract from the contractor detailing improvements to be performed must be included. Borrowers may use a contractor of their choice, contingent on the lender’s approval. Borrowers may also install their upgrades with proper documentation, such as receipts.
How is the ReEnergize Ohio rate reduction determined?

The ReEnergize Ohio interest rate reduction of up to 3% is calculated by the Ohio Treasury using current market investment indicators, and the negotiated business loan rate. As of 6/7/2019 the linked deposit and business loan discount rates will match.

Each bank will be required to identify one or more authorized contacts that can provide updates for the bank’s premier two year CD interest rate quarterly, or on demand by using this form.

Interest Rate Calculation Example: Using a recent two year CD interest rate average for participating banks, the interest reduction on a business loan rate of 5.75% would be reduced by 1%. The linked deposit interest rate placed at the bank would be discounted by 1% from that bank’s two year CD interest rate offered to account holders (for this example the average two year CD rate was 2.43%, so the linked deposit would be placed at 1.43%). For more details about this discount rate model please contact our office.

What can ReEnergize Ohio Finance?
  • ReEnergize Ohio can be used on existing structures, expansions to existing structures, or for the rebuilding of structures affected by a natural or catastrophic disaster. The financing can be used for the facility where the business is already located or the purchase of another building or store, as long as the improvements are going to be completed on those structures. 
  • Non-energy efficient projects can range from land and building exterior improvements, to interior remodeling, and for equipment, but are not limited to these examples.
  • Energy-efficient upgrades can apply to a wide array of improvements, products, or facility renovations as well. Some examples of eligible upgrades include, but are not limited to energy-efficient lighting & system controls, upgraded heating & cooling systems, renewable energy systems, weatherization projects, as well as energy-efficient appliances, new equipment or vehicles. Please contact the Treasurer’s office to find out if your project would qualify (614)-466-6546. 
Is my client’s business qualified to participate in ReEnergize Ohio?
Qualifying small business owners:
  • MUST be organized for profit
  • MUST be headquartered in Ohio
  • MUST maintain offices and operating facilities exclusively in Ohio
  • MUST have fewer than 150 employees
  • MUST primarily employ Ohio residents
What are the terms of the qualifying loan?
  • The term and size of the loan are decided by the lending institution and the borrower. The Treasurer’s office will fund up to a 3% interest rate reduction on the first four years of the loan on amounts up to $550,000.00. The length and amount of the loan can be greater, but at the end of the four years the interest rate returns to the negotiated rate.
  • The loan interest rate reduction must be a fixed rate. If your borrower’s loan interest rate is variable, the bank would need to fix the interest rate reduction to ride on any loan rate changes for the four years that they participate in ReEnergize Ohio.
  • Co-signers are permitted, however the Treasury cannot fund a loan in the names of co-borrowers, defined as listing two distinct businesses in the name of one loan. Holding companies may be listed as guarantors on the loan, as can additional business owners.
Can a small business owner qualify for another Ohio Treasury linked deposit program?

Yes, in some circumstances a small business owner can be eligible to apply for another linked deposit program. However, the programs will not run concurrently, meaning that the interest rate reductions cannot be combined on the same loan. The Economic Development Department encourages small businesses to apply for any linked deposit program that applies to their needs.
Other TOS Programs you may be interested in: 
  • Bid Ohio: This program provides monthly auctions for banks that are looking for deposits. For more information please visit the Bid Ohio webpage.
  • OMAP: The Ohio Market Access Program provides credit enhancement to local governments and schools in Ohio issuing short-term municipal notes. Standard & Poor’s has assigned its highest short rating, “SP-1+”, to OMAP which enables issuers to save money on debt service costs and improve market access.

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