Getting sufficient capital for a business expansion can be a challenge but for 10 southeastern Ohio counties “gap funds” from the Ohio Mid-Eastern Governments Association (OMEGA) may be the answer.
Using federal and state resources, OMEGA offers private, for-profit companies loan funds that work in conjunction with traditional bank financing to supplement the bank’s financing limits. These loans bridge the difference and provide the funds a project needs to succeed.
A recent revolving fund loan helped relocate and expand a Buffalo Wild Wings restaurant in St. Clairsville. The $2.8 million project also received a bank loan and corporate investment. The company was required to create 15 full-time-equivalent jobs to meet the job-to-loan ratio.
“Our funding was a critical piece of the financing puzzle as the bank was at its lending limit for the restaurant industry,” said Lolly Ravak, loan fund administrator. “The bank loan was contingent on OMEGA’s participation.”
The agency’s loan program also helped MPR Supply Chain Solutions expand to serve the oil and gas industry. A collaboration between the company, Belmont County CIC, OMEGA and a local bank put together a $1.25 million loan package in 2010. The storage and multimodal trans-loading business in Bellaire continues to grow and has created more than 60 jobs.
OMEGA Loan Programs
166 Loan Fund is funded by the Ohio Development Service Agency and can be used for commercial, manufacturing, industrial or distribution entities to acquire buildings, machinery, equipment and other fixed assets or construct, repair and renovate facilities.
Revolving Loan Fund is funded by Appalachian Regional Commission, Economic Development Administration and the U.S. Department of Agriculture. Funds can be used for acquisition of buildings, machinery, equipment and other fixed assets; limited working capital; construction, repair and renovation of facilities.
Both programs have additional requirements including the creation of one full-time equivalent job created or retained for each $50,000 in financing.
OMEGA serves these counties:
Belmont, Carroll, Columbiana, Coshocton, Guernsey, Harrison, Holmes, Jefferson, Muskingum and Tuscarawas.
Contact: lravak@omegadistrict.org
