H1 tag

SMALL BUSINESS FINANCING

Horizon Certified Development Company (an affiliate of Hamilton County Development Company) has been certified by the U.S. Small Business Administration to offer the SBA 504 Program to small business customers since 1983. The SBA 504 Program enables small businesses to purchase, construct or renovate owner-occupied real estate and purchase equipment with a low down payment and fixed interest rate for a term of ten or twenty years. In addition to normal credit approval, a small business must show that it will meet one of the SBA’s economic development objectives, such as new job creation. Since 1983 Horizon has assisted over 1,000 companies. Eligible companies must be located in the State of Ohio, State of Kentucky or Southeastern Indiana.

Horizon Certified Development Company also administers the Ohio 166 Loan Program on behalf of the Ohio Department of Development throughout the State of Ohio. The 166 Program offers below-market, fixed-rate loans for the purchase of fixed assets such as real estate and equipment for manufacturing and distribution businesses that will create new, full-time jobs.

SBA 504 Loan: A Powerful Idea with Simple Rules

The idea behind the 504 program is powerful. Working through area banks, we help businesses get access to stable, long-term financing that creates jobs and improves the local economy.

HCDC Provides Business Loans in Participation with Area Banks
Horizon Certified Development Company (HCDC) is a non-profit development company created to promote economic development. HCDC is a lender, certified by the U.S. Small Business Administration to provide 504 SBA guaranteed loans to businesses expanding or locating in the State of Ohio, Northern Kentucky, or Southeast Indiana.

Competitive Rates That Really Are Competitive

• Interest rates for the 40% HCDC portion of the loan will always be competitive with, and usually slightly below, current market rates.
• The rate for the 504 portion will be fixed for the term of the loan.
• Lenders like the 504 Program because it allows them to have a first mortgage with only 50% exposure.

How the 504 Program Works
HCDC provides subordinated, fixed interest rate, long-term loans for up to 40% of project costs or $5,000,000 (up to $5.5 million in special cases). Terms are 10 and 20 years, depending on the economic life of the asset being financed.

Who Is Eligible for the 504 Loan Program?

• For-profit corporations, partnerships and proprietorships.
• Businesses whose net worth does not exceed $15,000,000.
• Net after tax profits must average less than $5,000,000 during the previous two years.

Applicants Involved in the Following are Ineligible:

• Speculation
• Non-profit institutions
• Lending or investment
• Rental property held primarily for sale or investment

What Is Eligible for the 504 Loan Program?

• Financing for land acquisition
• Financing for building acquisition or construction
• Financing for renovation or expansion
• Financing for machinery and equipment with a useful life of 10 years or more
• "Soft" costs for appraisals, general surveying, architectural work and installation.

Ohio 166 Loan: The Economic Development Program for the State of Ohio
The "166" Loan Program is designed to assist growing manufacturing businesses acquire machinery, equipment and real estate by reducing overall debt service requirements through blending the "166" loan with conventional bank financing.

HCDC Provides Business Loans in Participation with Area Banks
Horizon Certified Development Company (HCDC) is a non-profit development company created to promote economic development. HCDC is a lender, chosen by the State of Ohio, to provide "166" loans to businesses expanding or locating in the State of Ohio.

An Unmatchable Interest Rate

• The rate for the "166" portion will be fixed for the term of the loan.

How the "166" Loan Program Works
HCDC has been selected by the Ohio Department of Development to offer "166" loans in Southwestern Ohio. The borrower must contribute at least 10% of the project cost in cash. HCDC can provide 40% of the project cost up to a $500,000 loan. A private lender provides the balance on a shared first lien basis.

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

• Manufacturers
• Distributors
• Other industrial

What Is Eligible for the "166" Loan Program?

• Financing for land acquisition and building construction (prevailing wage applies)
• Financing for building acquisition
• Financing for renovation or expansion (prevailing wage applies)
• Financing for machinery and equipment (prevailing wage applies for installation)
• "Soft" costs for appraisals, general surveying, architectural work and installation

Conditions for the "166" Loan Program:

• Refinancing of an existing obligation is ineligible.
• Inventory and working capital financing is ineligible.
• Business owners may own the building and lease to the company.
• 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.
• At least one job must be created or retained for each $50,000 in "166" funds loaned.
• All owners of the company stock will be required to personally guarantee the loan as well as any affiliate companies.
• A "166" loan may be prepaid. No partial prepayment, however, is permitted. There is no prepayment penalty assessed on "166" loans.

To initiate the process for being considered for small Business Financing you may contact:

Hamilton County Development Company