A proposed law in the Ohio House of Representatives would create a loan fund of up to $100 million for the state’s small businesses.
Companies with sales between $1 million and $50 million would be eligible under the program, which would be administered by the Ohio Department of Development. ODOD would select up to two investment firms to vet and approve loan applications.
Small businesses’ difficulties in finding access to working capital during tough economic times provided the motivation behind crafting the bill, said Rep. Nancy Garland, D-Gahanna, and one of the bill’s two sponsors.
The bill is designed to help “mature businesses that have struggled because of the economy, but have the ability to be successful if they can get help during this difficult time period,” Garland said.
It would be up to ODOD to establish the criteria for qualifying for a loan under the program. However, priority would be given based on the economic needs of the area in which the business is located and the number of jobs created, according to the bill.
ODOD Spokesman Greg Woods said the agency is reviewing the proposal and had no further comment.
The law would be considered “an emergency measure necessary for the immediate preservation of the public peace, health, and safety,” allowing it to take immediate effect upon passage, according to the proposal.
