ReEnergize Ohio FAQ
Q: What is ReEnergize Ohio? How does it work?
A: ReEnergize Ohio enables small business owners to receive up to a 3% interest rate reduction on new or existing small business loans up to $550,000 for four years, with no renewals. For more information on the application process, review our website or call our office directly with questions at (614) 466-6546.
Q: What happens after the first four years of the loan?
A: The business loan’s interest rate will return to the normal borrowing rate agreed upon by the bank and the business. There is no option to renew the ReEnergize Ohio interest rate reduction.
Q: Can I apply ReEnergize Ohio to an existing loan?
A: Yes. As long as the business can provide documentation for all of the expenses associated with the work done to their facility or items purchased. Ultimately, the owner must show line item documentation to account for the use of the loaned funds in order to apply the reduction to an existing application.
Q: Is there an annual application period or deadline?
A: No. Approval decisions are made on a first-come, first-served basis. The Treasurer’s office accepts applications year-round.
Q: How does the interest rate reduction work?
A: The bank makes credit decisions as to the loans for small businesses. Approved applications will receive Treasurer’s office funds at a below market rate. In turn, the bank uses the interest margin they generate on the investment, to provide the interest rate reduction to the borrower. The Treasurer’s office does not loan money to either the bank or the borrower – the Treasurer’s office only invests money.
Q: What if the terms of my bank loan exceed the ReEnergize Ohio limit?
A: The length of your loan and the amount of your loan can be greater, but ReEnergize Ohio will only reduce the interest rate for four years on up to $550,000.00.
Q: Can I use this program with other programs, such as an SBA loan?
A: Yes. The Treasurer’s office encourages smart business and believes Ohio’s business owners should have access to all the support for which they are eligible.
Q: Can a business participate with more than one loan in the same lending institution?
A: Yes, ReEnergize Ohio can be applied to multiple loans, but the interest rate will only be reduced on up to $550,000 of the loans. Loans with amounts exceeding $550,000 can use blended interest rate tools established by the lending institution.
Q: Can I use ReEnergize Ohio to purchase real estate for the business?
A: Yes, in some circumstances this type of purchase may qualify for ReEnergize Ohio. As long the purchase is part of the business expansion, it may meet program requirements.
Q: Are franchises eligible to participate in ReEnergize Ohio?
A: All franchises will now be eligible to apply for ReEnergize Ohio, as long as the current fiscal year funding for all Economic Development Programs is below capacity. An executed copy of the franchise agreement is required for review, which will make that franchise document a public record. When the current fiscal year funding is above capacity, no franchise will be approved unless the business is located in a county with an unemployment rate above the Ohio statewide average.
Q: Can a small business owner participate in ReEnergize Ohio more than one time?
A: Yes, in some situations a small business owner can apply for multiple projects concurrently or in series. The small business owner can participate more than one time for the same facility or property, as long as the aggregate total is less than or equal to $550,000.00 during the four year term. The small business owner can also participate in ReEnergize Ohio for separate properties or facilities by completing separate applications.
Q: What is the Linked Deposit Investment Policy?
A: The Economic Development Department at the Treasurer’s office may invest up to 12% of the state portfolio in linked deposit programs each fiscal year. Capacity is defined at 90% of the overall Economic Development funds for the fiscal year (12% of the state portfolio).