Ohio Regional 166 Loan Program

Designed to Help Businesses Grow
The Ohio Regional “166″ Loan Program assists growing businesses in acquiring machinery, equipment and real estate through a partnership between business owners, conventional bank financing and HCDC.

The Benefits
The Ohio Regional 166 Loan is an attractive, fixed-interest rate loan with a lower down payment. The Program offers up to a 20-year term for real estate and up to a 10-year term for machinery and equipment (unless appraised for a longer life). Monthly payments are lower, so businesses can keep their cash for working capital. There is NO prepayment penalty. With over 25 years of experience with the Ohio Regional 166 Loan Program, HCDC’s team of experts will make the process simple for businesses and lending partners.

How Does It Work?
HCDC has been selected by the Ohio Development Services Agency to offer Ohio Regional 166 Loans throughout Ohio. The borrower must contribute at least 10% of the project cost in cash. HCDC provides up to 40% of the project cost up to a $500,000 loan. A private lender provides the balance on a shared first lien basis.

Example – $500,000 Project

$250,00050%Bank, S&LShared 1st Lien
$200,00040%HCDCShared 1st Lien
$50,00010%Owner Equity

Who Is Eligible?
The Ohio Regional 166 Loan Program is available to the following types of small business located in the State of Ohio:

  • Manufacturers
  • Distributors
  • Business to Business companies (retail businesses are ineligible)

What Is Eligible?

  • Land/building acquisition
  • New construction or renovation/expansion
  • Machinery and equipment
  • “Soft” costs for appraisals, general surveying, architectural work and installation


Associated Costs and Terms

  • Owner-occupied commercial real estate. For new construction, the operating company must occupy at least 75% of the building; for purchase of an existing building, the operating company must occupy at least 51% of the building.
  • Business owners may own the building and lease to the company.
  • Job creation/retention requirements apply.
  • Personal guarantees from each owner with more than 20% ownership is required.
  • Refinancing of an existing obligation is ineligible.
  • Inventory and working capital financing is ineligible.
  • Loan may be prepaid. There is NO prepayment penalty.

HCDC Experts Make the Process Simple

  • HCDC will handle all the application paperwork, processing and review required by the State of Ohio.
  • A $500.00 non-refundable application fee is required at the time of submission to HCDC and a 1.5% processing fee will be assessed at closing.

Contact us today!
Lock in below market rates with the Ohio Regional 166 Loan Program by calling our loan experts at 513-631-8292.