Q. What is GrowNOW? How does it work?
A. GrowNOW is a 3% interest rate reduction on a bank loan for your small business. The GrowNOW reduction lasts for 2 years, with the possibility of renewal. For more information on applying click here. For more information on program qualifications, click here.

Q. How much can I qualify for?
A. GrowNOW can reduce the rate up to $400,000 of a business’s loan. To qualify, the business must create or retain one full time equivalent job for every $50,000.

Q. What happens after the first two years?
A. The business’s loan will return to the normal borrowing rate agreed to by the bank and the business.

Q. Can I apply GrowNOW to an existing loan?
A. Yes. So long as the business is creating and/or retaining jobs and you meet the other program qualifications, you may apply GrowNOW to an existing loan.

Q. Can I use GrowNOW to purchase real estate for the business?
A. Because GrowNOW is linked to job creation and retention, the program can only be applied to a loan that is in the name of the operating company—the company that writes the paychecks to the employees. It can be used for real estate purchases, so long as the loan is in the name of the operating entity and not in the name of a holding company.

Q. Are franchises eligible?
A. Yes, but only in counties that have high unemployment. The Treasury considers these to be counties that are above Ohio’s average unemployment rate. For information regarding the unemployment rate for Ohio please visit: http://lmi.state.oh.us/

Q. Is there an annual application period or deadline?
A. No; approval decisions are made on a first-come, first-serve basis. The Ohio Treasurer accepts applications year-round.

Q. Where does the money come from? Is this like a grant?
A. With GrowNOW, the Ohio Treasurer purchases a certificate of deposit at a reduced rate for a set period of time from the lending institution that is willing to pass that savings along to a small business owner who is trying to create or retain jobs. The state is still earning interest on its money, but it is also leveraging its resources in local economies to grow jobs.

The Ohio Treasurer does not loan money to either the bank or the small business—the state treasurer only invests money; never does the treasury lend it or otherwise spend it.

Q. What if the terms of my bank loan exceed the GrowNOW limit?
A.GrowNOW will reduce the interest on your loan for the first two years on up to $400,000.  The length of your loan and the amount of your loan can be greater, but GrowNOW will only reduce the interest rate for the first 2 years on the first $400,000.  

Q. How often can a business participate in the program? Is the GrowNOW interest-rate reduction renewable?
A. Renewals will be considered only if the applicant can demonstrate that they will be creating new jobs outside of the jobs listed on the previous application. If eligible for renewal, a business can only participate in GrowNOW for 4 years out of any 6 year period.

Q. What if something happens and I can’t create the jobs that I said I would in my application? Will you take the interest rate reduction away?
A. We will terminate a GrowNOW interest rate reduction if the business goes into default status because they are unable to make their payments to the bank. Businesses that do not meet the job creation standards they set in their application will not be eligible for renewal of GrowNOW.

Q. Can I use this with other programs, such as an SBA loan?
A. Yes, absolutely. The Treasury encourages smart business and wants Ohio’s business to get all the support that they are eligible for.

Q. Can a business participate with more than one loan in the same lending institution?
A. Yes, GrowNOW can be applied to multiple loans, but the interest rate will only be reduced on up to $400,000.

Q. Can an existing business loan be considered for GrowNow?
A. Yes, you are welcome to refinance the loan or simply receive the program benefit without having to re-negotiate your loan.  You will need to make sure you still meet all of our program requirements including the job creation/retention piece. 

Q. My client owns more than 1 business; can I send an application for $400,000 for each business?
A. No, the total amount per business owner is $400,000.  This allows more businesses to participate.

Other Small Business Questions

Q. I can’t get a loan from a bank, what do I do?
A. There are many organizations that are helpful in getting businesses access to capital. Your local Small Business Development Center can help you with the process.

Q. How do I start a business?
A. For information on starting a business, please visit the DOD’s One Stop for business start ups.

Q. What other financing resources are there for small businesses?
A. This document is a helpful resource for information on Federal funding sources. This information is helpful for Ohio residents.

Q. Can real estate loans be considered for GrowNow?
A. Only if the name of the company that writes the paychecks is the exact name on the loan.