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New Economic Relief Options for Ohio Businesses

Ohio Governor Mike DeWine and Lieutenant Governor Jon Husted have announced three new economic relief programs to support Ohio businesses:

Appalachian Growth Capital Loan Program
The Ohio Development Services Agency and Governor’s Office of Appalachia are providing $10 million to help small businesses in the 32-county Appalachian region of Ohio, including Mahoning, Trumbull, Columbiana, Ashtabula, Holmes, Tuscarawas, and Carroll counties, and others in East, Southeast, and Southern Ohio.

Funding will be provided to Appalachian Growth Capital, which as a community development financial institution (CDFI), is dedicated to providing credit and financial services to underserved markets and populations. Appalachian Growth Capital will use the funds to create a loan program to support businesses affected by COVID-19. The program will provide loans of up to $500,000 at 2 percent interest with a repayments deferred for up to six months.

To be eligible, a business must have less than $40 million in annual sales in the most recently completed tax year and maintain 13-week cash flow projections.

To learn more or apply visit www.appcap.org.

Ohio Minority Micro-Enterprise Grant Program
The Ohio Minority Micro-Enterprise Grant Program is intended to support small minority- and women-owned businesses in Ohio that have been heavily impacted by the COVID-19 crisis. The program, offered by the Ohio Development Services Agency, provides $10,000 in grant funding to eligible businesses. Grants will be awarded on a first-come, first-served basis. According to Governor DeWine, the program can fund up to 500 businesses.

Eligible business must meet the following criteria:

  • Be certified as a Minority Business Enterprises or women-owned EDGE-certified business as of February 29, 2020
  • Have 10 or fewer employees
  • Have no more than $500,000 in annual revenue
  • Be current on all taxes
  • Be current on all private and public loans
  • Not be a recipient of funding under the Coronavirus Aid, Relief, and Economic Security (CARES) Act

For more information, or to apply, visit https://development.ohio.gov/bs/bs_mmegp.htm.

Ohio PPE Retooling and Reshoring Grant Program
The Ohio Development Services Agency is offering a total of $20 million dollars in grants, at up to $500,000 per facility, to eligible manufacturers or nonprofit organizations to retool their facilities to make PPE (personal protective equipment) or reshore PPE production to Ohio.

To be eligible, a business must be:

  • A small business under SBA guidelines or a registered nonprofit organization
  • In good standing with the Ohio Department of Taxation and Ohio Environmental Protection Agency and registered with the Ohio Secretary of State
  • Able to produce eligible PPE solely at an Ohio facility that is wholly owned and operated by the applicant
  • Agreeable to making its best efforts to sell PPE made through this grant program in Ohio before pursuing out-of-state buyers

For more information about this program or to apply visit https://development.ohio.gov/bs/bs_ppe-rrgpg.htm.

To discuss these or other economic relief programs available to your business, contact your HBK Advisor.

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About the Author(s)
Amy Reynallt is a Manager with the HBK Manufacturing Solutions Group in the Youngstown, Ohio office of HBK CPAs & Consultants. She is experienced in navigating the strategic and financial matters associated with manufacturing and works closely with manufacturers to help them plan, execute, and meet their short- and long-term financial goals.
Hill, Barth & King LLC has prepared this material for informational purposes only. Any tax advice contained in this communication (including any attachments) is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code or under any state or local tax law or (ii) promoting, marketing or recommending to another party any transaction or matter addressed herein. Please do not hesitate to contact us if you have any questions regarding the matter.

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