Innovative Financing Programs

The Toledo-Lucas County Port Authority has developed a national reputation for innovative business financing, assisting close to 300 economic development projects representing a total investment of more than $1 billion while helping to create and retain more than 15,500 jobs.

Financing Options include:

• Fixed Interest Rate Revenue Bonds
• Infrastructure Financing
• Conduit Revenue Bonds
• Ohio 166 Regional Loan Program
• U.S. Small Business Administration 504 Loan Program

Fixed Interest Rate Revenue Bonds

Fixed Interest Rate Revenue Bonds provide small and medium sized companies access to the national capital market as if they were BBB- Investment Grade companies. It provides:

• Financing for projects from $1 million to $8 million
• Fixed interest rates for full term of the bonds
• Typically 90% financing and 10% equity
• Twenty-year financing for land and buildings
• Financing up to 10 years for equipment
• Tax exempt bonds for manufacturing, non-profit 501(c)3 and governmental operations
• Taxable bonds for all other projects

Infrastructure Financing

Infrastructure Financing helps developers, governmental entities and other organizations finance public infrastructure such as streets, utilities and public parking facilities. The Toledo-Lucas County Port Authority has provided over $100 million in Tax Increment Financing (TIF) and special assessment-backed bonds in tax exempt, long-term, fixed-rate bond financing. Other benefits include:

• Possibility of 100% financing
• Lower cost of construction
• Fixed interest rate, tax exempt financing
• Terms of up to 32 years

Conduit Revenue Bonds

Conduit Revenue Bond financing offers a company the option of variable interest rates. Depending upon the borrower, these bonds may be backed 100% by a Letter of Credit. The Toledo-Lucas County Port Authority acts as a “conduit” for the issuance of such bonds. Revenue Bond Territory is any county in the State of Ohio.

Ohio 166 Regional Loan Program

Ohio 166 Regional Loan Program provides a low interest rate financing for fixed assets purchases such as land, building and equipment for projects in Ohio. It offers:

• Up to 40% of project costs for manufacturing, manufacturing-related, distribution, wholesalers, and research and development businesses
• Loans of up to $350,000, based on about $35,000 for each job created or retained
• A term of five to 15 years
• Current fixed interest rate of 3.5%
• Only a 10% equity injection into the project is required

U.S. Small Business Administration 504 Loan Program

Small Business Administration 504 Loan Program provides fixed asset funding to for-profit businesses with a net worth not exceeding $8 million and net after-tax profit of not more than $3 million. A typical transaction consists of 50% bank financing; 40% SBA; and 10% equity. The SBA takes a second collateral position. This program is available from the Toledo-Lucas County Port Authority throughout Ohio. Benefits include:

• Up to 40% of project costs for any for-profit business
• Maximum loan of $1.5 million or up to $2 million if the projects meets public policy goals or up to $4 million for manufacturing
• Terms of either 10 or 20 years
• Only a 10% equity injection into the project is required
• Long-term fixed interest rate at or slightly below market rate

Initial Project Information

Initial Project Information forms are needed to determine whether a project meets the requirements of any of the Port Authority development financing programs. This form is available here. A preliminary determination can traditionally be made within five business days.

Additional Information is available from Lisa Wagner, lwagner@toledoportauthority.org or Laurie Cantrell, lcantrell@toledoportauthority.org or by calling the Toledo-Lucas County Port Authority at 419- 243-8251.