Regional 166 Loan Program
The OMEGA Regional 166 Loan program offers low interest fixed-rate loans to private-for-profit businesses in conjunction with bank financing. The 166 funds are used in the event that full financing cannot be obtained from a bank, or to ‘fill the gap’ between the bank’s participation and the borrower’s cash contribution. The 166 loan program cannot provide 100% financing of a project.
OMEGA Regional 166 Loan Program
- Funding Source – State of Ohio, Ohio Development Services Agency (ODSA)
- Eligibility – commercial, manufacturing , industrial, or distribution entities; refinancing and retail projects are not eligible
- 166 Loan Participation – approximately 40% of total project cost or a maximum of $500,000, whichever is less may be eligible
- Equity – no less than 10% equity required of applicant
- Use of Proceeds – acquisition of buildings, machinery, equipment and other fixed assets; construction, repair and renovation of facilities (prevailing wage applies to all construction and construction-related activities)
- Rate – fixed at/or below current market rates; to be determined upon approval by ODSA (includes .25% annual servicing fee)
- Term – up to ten (10) years for Machinery and Equipment; up to twenty (20) years for Real Estate
- Collateral – shared first lien with the participating bank
- Personal Guarantees – required of all owners
- Corporate Guarantees – required from related companies
- Key Man Life Insurance – required on key managers and/or owners
- Jobs – one full-time equivalent job must be created for every $50,000 of OMEGA 166 Loan program financing
- Borrower Incentives – low, fixed interest rate; and lower down payment (equity)
- Non-Refundable Fees – $500 Application Fee; 1.5% Processing Fee; .25% Annual Service Fee; Legal/Professional Fees (attorney, recording/filing fees, appraisals, closing costs, etc.)
Who is Eligible?
Any private-for-profit business in the expansion phase that will be or is presently located within the OMEGA region and will be creating full-time equivalent jobs. The OMEGA region includes the following counties: Belmont, Carroll, Columbiana, Coshocton, Guernsey, Harrison, Holmes, Jefferson, Muskingum, and Tuscarawas.
Equal Credit Opportunity Notice
The Federal Equal Credit Opportunity Act prohibits creditors from discriminating against credit applicants on the basis of race, color, religion, national origin, sex, marital status, age (provided that the applicant has the capacity to enter into a binding contract); and because all or parts of the applicant’s income is derived from any public assistance program; or because the applicant has in good faith, exercised any rights under the Consumer Credit Protection Act. The Federal Agency that administers compliance with this law concerning this creditor is the Federal Trade Commission. If a person believes they were denied assistance in violation of this law, they should contact the Federal Trade Commission, Washington, D.C. 20580.
If you wish to file a Civil Rights program complaint of discrimination, complete the USDA Program Discrimination Complaint form found online at http://www.ascr.usda.gov/complaint_filing_cust.html or at any USDA office, or call (866) 632-9992 to request the form. You may also write a letter containing all the information requested in the form. Send your completed complaint form or letter to us by mail at U.S. Department of Agriculture, Director, Office of Adjudication, 1400 Independence Avenue, S.W., Washington, D.C. 20250-9410; by fax (202) 690-7442; or email at firstname.lastname@example.org.
OMEGA is an Equal Opportunity provider and employer