State of Ohio’s GrowNOW program gives small business owners a three percent reduction on bank loan rates, saving up to $24,000 over two years.  It’s easy to apply and to be approved when you link your loan to creating or retaining jobs in the state.

Through GrowNOW, Ohio Treasurer Richard Cordray is making available $1 million every business day for small businesses and the state’s economy. GrowNOW lowers the interest rate on bank loans by three percent for small businesses that are creating jobs or keeping jobs in hometowns for Ohioans. Affordable borrowing through the state’s eligible banks allows business owners financial stability while working through critical growth periods.

How does it work?

1. Small business owner applies for a bank loan.  A list of participating banks can be found on the GrowNOW website.

2. Bank approves the loan and establishes an interest rate with applicant.

3. Bank and small business owner apply for a GrowNOW interest rate reduction.  The application is online at the GrowNOW website.

4. If approved, the Ohio Treasury places a certificate of deposit with the bank at a three percent reduced interest rate.

5. The bank agrees to pass along the interest savings to the small business owner’s loan.

6. GrowNOW saves a small business owner up to $24,000 in interest over the first two years of the loan.  (Create or save one full-time or two part-time jobs for every $50,000 requested, up to $400,000).

How do you qualify?

Qualifications are basic, realistic, and should apply to almost all regional entrepreneurs:

• Less than 150 employees

• Majority of employees must be Ohio residents

• Organized for profit

• Offices and operating facilities in Ohio

In the earlier stages of your startup, bootstrapping with your own investments is highly recommended versus outside investment or venture capital.  You keep control of your business and don’t lose focus pursuing outsider’s money.  If you are at this stage, don’t forget to take advantage of this great program.