Business Basics, a workshop held monthly. The sessions cover the basics of operating a business. Allen McConnell, Manager Minority Business Development Division will be presenting. Our targeted audience is business owners.

Ohio Minority Business Bonding Program

The Minority Business Bonding Program provides bid, performance, and payment surety bonds to state certified minority-owned businesses that are unable to obtain bonding through standard surety companies.  To be eligible for this program, the project must be economically feasible; and the minority business must not have defaulted on a previous bond issued by the Ohio Development Services Agency.

The maximum bonding line pre-qualification is $1 million per business.  The premium for each bond requested is 2 percent of the face value of the bond.  The business must demonstrate the benefit to Ohio residents by increasing employment opportunities. The collateral and/or security are the personal guarantees of the principals and persons substantially involved in business operations, and other such collateral as warranted.

Ohio Minority Business Direct Loan Program

The program provides fixed, low-interest rate loans to certified minority-owned businesses that are purchasing or improving fixed assets resulting in creating new jobs for Ohioans. The Minority Business Direct Loan Program determines the eligibility of a business by:

• Evaluating the number of jobs created or retained;
• Participation of the business and a conventional lender in the project and;
• Demonstrating that the State's assistance is necessary in order for the project to go forward.

In its review of loan applications, the office also evaluates the management capacity of the company, the availability of working capital, and the overall ability of the company to repay its debt. These criteria are designed to provide a more definitive review of the applicant's need and capabilities.

The State's financing is take-out financing. In other words, the business will need to complete its project utilizing interim financing from a conventional lender, and its equity. When the project is completed, the State's funds will be released.