ReEnergize Ohio encourages small businesses to make facility improvements, and upgrades by offering an interest rate reduction on commercial loans. The program functions within the existing Treasurer’s office linked deposit model.
The Treasurer’s office places an investment at the eligible public depository where the small business has taken out a loan. The Treasury agrees to take a lower rate of return on the investment and the financial institution agrees to pass along their savings to their borrower in the form of an interest rate reduction.
In order to participate, the lending institution must be a state depository bank. If you would like to participate but are not yet a depository bank, please visit our Financial Institutions webpage
The lending institution will use its usual lending standards and guidelines to determine the credit-worthiness of the potential borrower. The term and size of the loan is solely decided on by the lender. The Treasurer’s office can provide the rate reduction for four years of the loan, up to $550,000. The rate reduction cannot be renewed.
After review of the completed ReEnergize Ohio application and accompanying supporting documentation of property improvements and upgrades to be completed or implemented, the Treasurer’s office will notify the lenders of approval or denial of the ReEnergize Ohio application. If a business is using a contractor, a firm quote or contract from the contractor detailing improvements to be performed must be included. Borrowers may use a contractor of their choice, contingent on the lender’s approval. Borrowers may also install their upgrades with proper documentation, such as receipts.What can ReEnergize Ohio Finance?
Is my client’s business qualified to participate in ReEnergize Ohio?
- ReEnergize Ohio can be used on existing structures, expansions to existing structures, or for the rebuilding of structures affected by a natural or catastrophic disaster. The financing can be used for the facility where the business is already located or the purchase of another building or store, as long as the improvements are going to be completed on those structures.
- Non-energy efficient projects can range from land and building exterior improvements, to interior remodeling, and for equipment, but are not limited to these examples.
- Energy-efficient upgrades can apply to a wide array of improvements, products, or facility renovations as well. Some examples of eligible upgrades include, but are not limited to energy-efficient lighting & system controls, upgraded heating & cooling systems, renewable energy systems, weatherization projects, as well as energy-efficient appliances, new equipment or vehicles. Please contact the Treasurer’s office to find out if your project would qualify (614)-466-6546.
Qualifying small business owners:
What are the terms of the qualifying loan?
- MUST be organized for profit
- MUST be headquartered in Ohio
- MUST maintain offices and operating facilities exclusively in Ohio
- MUST have fewer than 150 employees
- MUST primarily employ Ohio residents
Can a small business owner qualify for another Ohio Treasury linked deposit program?
- The term and size of the loan are decided by the lending institution and the borrower. The Treasurer’s office will fund up to a 3% interest rate reduction on the first four years of the loan on amounts up to $550,000.00. The length and amount of the loan can be greater, but at the end of the four years the interest rate returns to the negotiated rate.
- The loan interest rate reduction must be a fixed rate. If your borrower’s loan interest rate is variable, the bank would need to fix the interest rate reduction to ride on any loan rate changes for the four years that they participate in ReEnergize Ohio.
- Co-signers are permitted, however the Treasury cannot fund a loan in the names of co-borrowers, defined as listing two distinct businesses in the name of one loan. Holding companies may be listed as guarantors on the loan, as can additional business owners.
Yes, in some circumstances a small business owner can be eligible to apply for another linked deposit program. However, the programs will not run concurrently, meaning that the interest rate reductions cannot be combined on the same loan. The Economic Development Department encourages small businesses to apply for any linked deposit program that applies to their needs.