This is an incredibly exciting and auspicious time for Ohio’s bioscience, health and life sciences industries, with incredible growth and massive record investment in recent years. In 2020, bioscience companies in the state attracted a record $3.3 billion from sources including venture capital, exits, angel investment, federal research grants and other state initiatives.
Government finance types have been in a mad scramble since March 2021 to answer the how, where and on what riddles to spending their American Rescue Plan Act (ARPA) funds. As is well-known, the federal government’s response to the COVID-19 public health emergency has pushed billions of dollars into state and local governments’ coffers. Thus leading to heady conversations – often with lawyers in tow – as to what are eligible expenses and what aren’t.
The Toledo-Lucas County Port Authority’s financing programs had another tremendous year with a total of over $30 million financed through its multiple programs. Through the Small Business Administration 504 loan program, five projects were closed totaling nearly $2 million, and five projects were financed through the Northwest Ohio Bond Fund totaling over $28 million – the second highest year since inception of the Bond Fund in 1988. In addition, the Port Authority’s BetterBuildings Northwest Ohio (BBNWO) program closed on $1,358,000 in energy improvement projects through its Energy Special Improvement District.
Federal News:
Final Rule released for local governments’ use of ARPA funds: On January 6, the U.S. Treasury issued its 437-page Final Rule on the use of ARPA – Local Fiscal Recovery Funds. The Treasury published a high-quality overview describing its new guidance.
But which form of guidance to follow? Interim Rule or Final Rule? Treasury states that its Final Rule takes effect on April 1, 2022; prior to that date, “recipients may take actions and use funds in a manner consistent with the final rule, and Treasury will not take action to enforce the interim final rule if a use of funds is consistent with the terms of the final rule, regardless of when the [Local Fiscal Recovery Funds] were used” (U.S. Treasury, Statement Regarding Compliance with the Coronavirus State & Local Fiscal Recovery Funds Interim Final Rule and Final Rule, Jan. 2022, at page 1).
State News:
State Capital Bill requests to be due by March 18 to your legislators: We now know of the timeline set by the General Assembly and Governor DeWine’s Administration for the capital budget for 2022. In December, Senate Finance Committee Chair Matt Dolan (R-Chagrin Falls) announced the plan to (i) complete the capital re-appropriations budget by March 31 of funding already authorized projects and (ii) appropriations for new capital projects are to be due to state legislators by March 18. For new projects, legislators will submit their priorities by April 1.