Loans can help rural industrial park development

Dec 26, 2019 | News, Newsletter

Dan Bowerman
Ohio Development Services Agency

 

 

 

Rural industrial parks can get a boost through an initiative now being offered by the Ohio Development Services Agency.

The Rural Industrial Park Loan Program, or RIPL, promotes economic development by providing low-interest direct loans to assist eligible applicants in financing the development and improvement of industrial parks and related off-site public infrastructure improvements.

Eligible applicants include counties, municipalities, townships, nonprofit organizations, port authorities, community improvement corporations and private developers willing to develop and improve industrial parks in rural areas of the state. Eligible rural areas include distressed, labor surplus and situational distressed counties as defined by the Ohio Revised Code.

A total budget of $25 million is available for state fiscal year 2020. The loan may be used to finance up to 75 percent of allowable project costs with loan amounts from $500,000 to $2,500,000. A minimum of 10 percent equity contribution from the borrower is required.

 At least 50 percent of the outstanding loan balance may be forgiven upon successful completion of the project as described in the application and loan agreement.

 A nonrefundable $1,500 application fee is due upon submitting a completed application. If the applicant is approved for funding under the program, the application fee will be credited against the commitment fee. A nonrefundable commitment fee of at least $12,500 is due upon receipt of a signed loan approval, confirmation and commitment letter. An annual servicing fee equal to one-quarter of 1 percent of the outstanding principal amount of the loan is pro-rated and payable monthly after closing of the loan.

Applications are now being accepted electronically and will be reviewed on a first-come, first-served basis. Applications will be considered only after the required application fee has been received and the applicant has provided proof that all other sources of funds are available/committed.

For more information, visit https://development.ohio.gov/bs/bs_riplp.htm or contact Development’s Office of Strategic Business Investments at (614) 387-2117 or financialincentives@development.ohio.gov.

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