A federal program funneled down to the states is making it easier for small businesses looking to expand to get financial help.
The Ohio Development Services Agency announced Thursday the state has received the $18 million in funding to back loans for small businesses. Ohio’s small business lending funding is handled through its Collateral Enhancement Program, the Ohio Capital Access Program and the Targeted Investment Program.
President Barack Obama in 2010 signed into law the Small Business Jobs Act, which awarded the state $55 million to help small businesses to be issued in incremental amounts of $18 million.
The state received the first $18 million in January 2012.
There is demand for the money.
“There is a need in Ohio. Small businesses are taking advantage,” said Stephanie Gostomski, spokeswoman for Ohio Development Services Agency.
The agency works with businesses and banks to guarantee loans for small businesses looking to start up or expand.
A qualifying company has to be deemed credit-worthy and promising but needs help getting a loan because it might not meet collateral or other loan standards. Banks require businesses to have more money on hand or more value in the business before a loan can be approved.
That is where the programs help bridge the gap.
Each federal dollar is estimated to generate $10 more in additional lending, said the U.S. Treasury Department.
The U.S. Treasury dispersed, as part of the program, $1 billion in 2013 throughout the United States.
•Citizens Savings Bank
•Citizens National Bank
•Farmers & Merchant Bank
•Farmers National Bank
•First Bexley Bank
•First Financial Bank
•First National Bank of Pandora
•Huntington National Bank
•Lorain National Bank
•Park National Bank
•Security National Bank
Source: Ohio Development Services Agency