For businesses seeking to locate, relocate or expand, financing and incentive programs are available in Lorain County, Ohio and from the State of Ohio Department of Development.
Lorain County Community Development Department
As the community and economic development representative for the Lorain County Board of Commissioners, Lorain County Community Development Department offers programs and services in Planning, Zoning, Housing, Community & Economic Development.
- Lorain County Revolving Loan Fund
- Community Development Block Grant-Economic
- Tax Abatement in Enterprise Zones (EZ)
- Development: Grant / Loan Program
- Industrial Development Revenue Bonds (IDRB)
- CEDS
Contact: Community Development Department at (440) 328-2322 or visit them online at loraincounty.us
Lorain County Port Authority
Lorain County Port Authority Financing Programs
The Lorain County Port Authority offers project financing through two mechanisms, the Bond Reserve Fund and Port Lease Financing.
The Bond Reserve Fund is designed to provide long term fixed interest rate financing for qualified industrial, commercial and public infrastructure projects. It enables small and medium sized companies with the ability to access the national capital markets through a system of reserves that serve as credit enhancement.
- Issuer of bonds: Lorain County Port Authority
- Types of bonds: Taxable and Tax-Exempt
- Term of Loans: Average loan terms fall between ten (10) and twenty (20) years; Loans for machinery and equipment do not typically exceed seven (7) years
- Interest Rate: Fixed at the time bonds are sold for the term of the bond, based upon the rating of the bond fund and taxable or tax-exempt status of the project
- Loan Size: Approximately $1 Million to $6 Million
- Port Lease Structured Finance options are generally used for large scale projects. In-depth descriptions are available from our office. Please contact the Lorain County Port Authority to review your project.
Port Lease Financing
- Finance/Capital
- Operating
- Synthetic
Capital - A lease that meets one or more of the following criteria, meaning it is classified as a purchase by the lessee: the lease term is greater than 75% of the property's estimated economic life; the lease contains an option to purchase the property for less than fair market value; ownership of the property is transferred to the lessee at the end of the lease term; or the present value of the lease payments exceeds 90% of the fair market value of the property.
Operating - A lease for which the lessee acquires the property for only a small portion of its useful life. An operating lease is commonly used to acquire equipment on a short-term basis. Any lease that is not a capital lease is an operating lease.
Synthetic - A transaction that appears as a lease from an accounting standpoint, but as a loan from a tax standpoint. The end results are an off-balance sheet account of the financing and the tax benefits that accompany the financed asset.
Please contact the Lorain County Port Authority for current information.
Lorain Port Authority
Lorain Port Authority Financing Program: In partnership with the Cleveland-Cuyahoga County Port Authority.
Creative financing options can accommodate your individual needs. As a partner with the Cleveland-Cuyahoga County Port Authurity, the Lorain Port Authority's customized lending tools can be used for equipment, construction, land and building acquisition, and facility improvements.
The Fixed-Rate Financing Program makes it possible for smaller businesses to access the U.S. capital market and borrow money at investment grade rates. The program also benefits many larger businesses that find an investment grade rating costly and difficult to maintain.
Additional highlights:
- Financing between $1.5 million to $6 million
- Transaction capacity may exceed $20 million when combined with other financing sources
- Financing for fixed assets, such as land, buildings and equipment
- Fixed interest rates for up to 25 years
The Off-Balance Sheet Financing and Leasing Program is ideally suited for companies and non-profit organizations that want to obtain a new facility but do not want the asset to appear on their balance sheet. This financing vehicle allows the port authourity to own the facility and lease it to the company.
Additional highlights:
- 100% financing
- Lower costs for materials used in the construction of a building
- Choose from three types of leases: financing, operating or synthetic.
The Infrastructure Financing Program makes it possible for developers, cities and other regional organizations to finance public infrastructure projects, such as streets, roads, underground utilities, sidewalks, street lights, landscaping and public parking garages. This type of financing is particularly attractive for mixe-use developments and can be financed using tax increment or special assessment as the revenue streem to pay for the public improvements.
Additional Highlights
- Elimination of Equity
- 100% financing
- Lower costs on project materials
- Long-term financing
Please contact the Lorain Port Authority for current information.
Ohio Department of Development - Economic Development Division
The Ohio Department of Development's Economic Development Division works to create, retain and expand job opportunities for all Ohioans. The Division focuses on issues affecting Ohio's economy and provides a variety of business development resources to help Ohio remain at the forefront of economic development.
The Division offers companies direct financial assistance in the form of low-interest loans,grants, bonds, and state and local tax incentives . The Division also offers assistance with employee training and infrastructure development.
The Economic Development Division provides Ohio businesses with access to technical assistance, counseling and training programs. Programs such as the 1st Stop Business Connection offer comprehensive information designed to assist small start-up firms with business development. The first in the country to offer electronic site selection information, Ohio's electronic site location proposals drastically cut response time while enhancing the quality of information available.
From new entrepreneurs starting small businesses to large corporations, the Economic Development Division provides business owners and executives with the information and support they need to make informed, critical decisions on location, infrastructure, job creation and retention, training and financial assistance.
Contact: Economic Development Division at (614) 466-4551 or (800) 848-1300.
Business Start-Ups
Entrepreneurs who are starting a business wlil also be able to visit the U.S. Small Business Administration (SBA) to explore financing options. The SBA offers loan programs, investment programs and bonding programs, all of which are designed to assist small businesses. Visit the Small Business Administration.
