Rebecca O. Bagley, president and CEO of NorTech said of the report:

The data reinforce the importance of Northeast Ohio’s technology industries to our region’s economy and its workforce.  It also shows that Northeast Ohio is continuing to transition to a more diversified economy driven by growth in our high-tech industries. However, this type of transition takes time. As our economy begins to recover from the recent recession, now is the time for the public and private sectors to accelerate investments to keep momentum moving forward.

Download/View the Northeast Ohio High-Tech Economy Brief

If so, the Cuyahoga County New Product Development Loan Program, administered by MAGNET, has low interest loan funding available to help small businesses or entrepreneurs bring their ideas to reality.

A funding round is now open. Completed applications will be accepted until Tuesday, July 6, 2010.

The application process has recently changed.  Please visit http://www.magnetwork.org/programs/county_loan.htm for more specific program information and instructions on how to submit an application.

Funding is available to small businesses or entrepreneurs with prior year sales of less than $50 million who have an idea to develop a new product that will be manufactured in Cuyahoga County for at least 7 years.

The application process is competitive.  Applicants will have their submissions reviewed and approved by a committee consisting of local business leaders, venture capitalist, designers, and entrepreneurs.   Loans are made in phased increments ranging from $15,000 to $60,000 depending upon how much development has already been completed and what remains to be done.  Funds can be used for activities such as market research, patent services, industrial design, engineering and prototyping efforts.

The loans are 10 year loans.  They are interest and payment free for the first three years after disbursement.  The loan balance is then amortized over the remaining seven years of the loan (at an interest rate of 3.5%), during which time monthly payments of principal and interest are due.

Full details of the program are available at http://www.magnetwork.org/programs/county_loan.htm.  If you have further questions, please contact Barbara Paul at 216-432-5322 or barbara.paul@magnetwork.org.

Chief Development Officer Julie Michael Smith states, “With the positive focus on Youngstown as one of the ten best cities to start a business by Entrepreneur magazine and favorable comments in a recent edition of Economist, YBI wanted to refresh its website with improved access for users and fresh content to help manage the number of new contacts we have been receiving.”

NEOinc would add to the list to include the Innovation Loan Fund at Lorain County Community College (grants up to 25K, loans up to 100K), and the Cuyahoga County New Product Development Fund, administered by MAGNET (loans up to 60K).

Without further ado – on to the incentives.

Economic Incentives for the High Tech Industry

City of Cleveland

Technology Business Grant Program

This program was designed by the City of Cleveland to attract new business to the City while helping reinforce the City’s “brain gain.” Grant assistance can be applied to both new and existing technology businesses with strong prospects of growth and commercialization of proprietary technologies. Approved companies will receive up to $50,000 per year for three years, based on 50% of new City of Cleveland income taxes generated.

Economic Development Loan Program

The Economic Development Loan Program is designed to help companies from across all industries. This program offers long-term, fixed-rate financing at 4.0% interest. Loans for this program range from $35,000 to $500,000 and cannot exceed 40% of the total project’s cost. Terms are typically 5-7 years on equipment and to up 15 years on land and buildings. The City will take a subordinated collateral position to a private lender.

Vacant Property Initiative Fund

For technology-based companies looking to buy a building for office space or to build their new headquarters or technology showcase space, the Vacant Property Initiative Fund may help secure the facility you need. These loans are designed to overcome barriers to the re-use of abandoned, idled or underutilized commercial properties. Loans may be used for property acquisition, environment site assessments, site clearance and demolition and new construction. The funding is up to 45.0% forgivable. The loans have a 6.0% fixed interest rate and are made for a maximum of one-year.

The City of Cleveland has various other economic incentives available for business and commercial development, please contact us at the LNE Group to discuss in more detail.

Cuyahoga County

NorthCoast Opportunities Technology Fund

The NCO Tech Fund program targets technology companies that are excellent candidates for future venture capital investment and possess high growth job creation potential. Approved companies will receive a payment-deferred, low interest loan to complete a specific initiative or project that is expected to make the company significantly more attractive to pre-seed investors. Evaluation and selection will be performed by the County in collaboration with the State of Ohio funded TechLift entrepreneurial signature program. Funding rounds will occur on a bi-monthly basis.

Key Business Requirements

• Loans can be for $25K- $125K, with typical loans in the $50-75K range
• Interest rate of 5%
• Payments deferred for five years or until:
  Significant financing event (greater than $1.5 million)
  Sale of company or company assets
  Failure to comply with terms of agreement (i.e. leaving Cuyahoga County)
• Loan proceeds must be used for a specific project or initiative that will bring the company closer to achieving pre-seed funding.
• Loan is secured by the personal property and assets of company

Grow Cuyahoga Fund

The Grow Cuyahoga County Fund is a regional economic development fund operated in conjunction with the National Development Council which is a licensed SBA 7(a) lender. The National Development Council (NDC) is one of the nation’s oldest non-profit organizations for community and economic development. Through its Grow America Fund subsidiary, NDC provides SBA-guaranteed 7(a) loans to small businesses in partnership with client communities throughout the country.

The Grow Cuyahoga County Fund can make loans ranging from $100,000 to $1 million. The loans will generally be at rates of prime minus 2% to prime plus 2%, for terms up to 25 years depending on the proposed use of funds. Loan proceeds may be used for any legitimate business purpose, including working capital, machinery and equipment, acquisition of land and building, construction, renovations and tenant improvements. The Grow Cuyahoga County Fund does not provide venture capital and cannot provide funds for research and development or to satisfy equity or near-equity needs.

Economic Development Loan Program

The Economic Development Loan Fund provides businesses with financial assistance to support the retention and creation of jobs for County residents. The fund provides long term, fixed-rate financing at interest rates lower than conventional financing. Interest rate is typically four and a quarter percent (4.25%). The fund is intended to fill a financing gap beyond the amount of private participation and equity investment that can be raised. Loans generally range from a minimum of $35,000 to a maximum of $350,000, up to forty percent (40.00%) of total project cost. Loan terms are up to seven (7) years on equipment and up to fifteen (15) years on land and building. Loans can be used to finance the acquisition of land, buildings, machinery and equipment as well as for new construction, renovation, expansion and/or conversion of facilities. Loans cannot be used to refinance debt, purchase inventory, pay other non-capital costs or on speculative projects. The County will take a subordinated collateral position provided there is adequate collateral available as security, up to a ninety percent (90.00%) loan to value ratio.

Key Business Requirements

• Businesses are required to create one new, full time, permanent job for every $35,000 loaned within three years of loan closing.
• Businesses must provide a minimum of ten percent (10.00%) equity. The business owner or majority stockholder must provide a personal guarantee for the loan amount.
• A majority or fifty-one percent (51.00%) of the jobs created must be made available to low and moderate income persons as defined by the federal government.
• The business must execute Workforce Cooperation Agreement with the County that designates as first source of referral for mutually agreed positions at the company.
• Business must demonstrate the ability to repay the loan as well as have adequate collateral and acceptable credit.
• When loan funds are used for construction, federal prevailing wage rates must be paid and a departmental environmental review must be conducted.
• The business owner or majority stockholder must provide a personal guaranty in the amount of the loan. Additionally, key man insurance and hazard of business insurance is required in the amount of the loan with Cuyahoga County Board of County Commissioners as the loss payee

Enterprise Zone Tax Incentives

A business enterprise located within a Cuyahoga County Enterprise Zone is eligible for negotiated tax incentives for new investment. Currently there are twenty-six (26) enterprise zones designated in Cuyahoga County municipalities which include: Bedford, Bedford Heights, Berea, Brook Park, Cuyahoga Heights, Euclid, Garfield Heights, Glenwillow, Highland Heights, Highland Hills, Maple Heights, Mayfield Heights, Newburgh Heights, North Olmsted, North Royalton, Oakwood, Olmsted Falls, Parma, Richmond Heights, Shaker Heights, Solon, South Euclid, Strongsville, Valley View, Walton Hills and Westlake.

Key Business Requirements

• Businesses must apply directly to the municipality which is the site of the new investment. Local governments can grant exemptions of up to seventy five percent (75%) on eligible new investments. The term of these incentives can be for up to ten (10) years. Once an agreement is negotiated between the company and the municipality, the agreement must be approved by the Board of Cuyahoga County Commissioners. The project cannot begin prior to the Commissioners’ approval.
• The companies are required to negotiate and execute a Workforce Cooperation Agreement with the County, which designates the County as the first source of referral for mutually agreed entry-level positions at the company.
• All intra-state relocations require a relocation waiver issued by the Ohio Department of Development. A letter from the mayor of the exited community is required on intra-county relocations.
• Fees include a one-time application fee of $750.00 payable to the Ohio Department of Development. There is also an annual monitoring fee charged by the municipality and split with the County. This fee is equal to one percent (1%) of the taxes exempted, minimum $500 and not to exceed $2,500 per year for the life of the agreement.

For more information on the Cuyahoga County economic incentives please feel welcome to contact me at 216.781.9000 or at mdealoia@lnegroup.com.

State of Ohio

Job Creation Tax Credit

The Job Creation Tax Credit allows companies that are creating at least 25 new full-time jobs that are paying at least 150% of federal minimum wage to apply for state income tax credits. Certain project that create 10 or more full-time jobs and pay more than 400% of the federal minimum wage may also be eligible for the tax credits. The credit is calculated as a percentage of state income tax revenue withheld by the business for new employees. The credit also allows a municipality to grant a credit against its income tax to business that receives it from the state.

Technology Investment Tax Credit Program

This credit program offers a variety of benefits to Ohio taxpayers who invest in small, research and development or tech-based firms. Through this innovative program, Ohio investors may reduce their state taxes by 25.0% (and in some cases 30.0%) of the amount they invest in qualified, technology-based Ohio companies. Both the companies and the investor’s must meet several requirements specified by Ohio law in order to gain access to this program.

Ohio Research & Development Investment Tax Credit

The Ohio Research & Development Investment Tax Credit provides a non-refundable tax credit against the corporate franchise tax and is designed to encourage Ohio-based companies to invest in increased research and development activities.

Research & Development Sales Tax Exemption

A unique way for a company to support its research and development activities is the Research & Development Sales Tax Exemption which allows for an exemption from the usual state and county sales tax for companies that purchase equipment for research and development activities. This allows Ohio-based companies to enjoy significant tax savings while undertaking research and development activities.

Ohio Innovation Loan Fund

The Innovation Ohio Loan Fund (“IOF”) was created to assist existing Ohio companies develop next generation products and services within certain “Targeted Industry Sectors” by financing the acquisition, construction and related costs of technology, facilities and equipment. The IOF provide competitive financing terms on loans to finance projects that will positively impact Ohio by creating high-value jobs, increased tax revenues and improve the welfare of the State.

The IOF is intended to supply capital to Ohio companies having difficulty securing funds from conventional sources due to technical and commercial risk factors associated with the development of a new product or service. The IOF can finance up to75.0% of a project’s allowable costs to a maximum of $3.0 million and a minimum of $500,000.

Key Business Requirements

The IOF will target industry sectors involving the production or use of:

• Advanced Materials
• Instruments, Controls & Electronics (“ICE”)
• Power & Propulsion
• Biosciences
• Information Technology

The IOF is intended to support the capital needs of established Ohio companies that have:

• A recent history of positive cash flow
• A minimum of three years of operating history
• Attracted or are likely to attract additional third party capital to the project

The Innovation Fund advances the strategy to grow our own businesses and jobs in the region.  “In this our seventh round of funding, we continued to be impressed with depth and quality of entrepreneurial ideas that are emerging from our region,” noted Lorain County Community College President Dr. Roy A. Church.  “Including this round, the Fund has invested more than $2 million in 30 companies located in NE Ohio”

The Fund is seeding the development of new technology-based industries in Northeast Ohio that represent the jobs of the future.  The fund supports Ohio’s overall strategy for technology-based economic development as evidenced by the Ohio Department of Development strategic plan.  These Innovation Fund awards help to fill the funding need for businesses that are at the earliest stage of development, the difficult point in a business’s growth before they are mature enough to attract angel investors and venture capitalists.

There are two types of awards within the Innovation Fund: the first is a grant of up to $25,000 to help validate the technology; and the second is a pre-seed grant of up to $100,000, which requires a one-to-one match, and is designed to help validate the business concept.

The six Innovation Fund Awards announced today are:

TheraVasc - Cleveland, Ohio – $100,000

• TheraVasc is developing a business based on new novel therapies for peripheral artery disease (PAD),a chronic disorder associated with reduced blood flow to the extremities that affects millions of people across the world.

Absorbent Materials Co. – Wooster, Ohio – $100,000

• Absorbent Materials is developing a new class of patent-protected, organosilica glass polymers called OSORB – which instantaneously swells to greater than three times its dry volume in non-polar solvents. As a result, it shows great promise as the material to clean hydrocarbon-contaminated groundwater and also to remediate toxic waste.

BizVeo – Youngstown, Ohio – $25,000

• BizVeo is developing a web based education and training tool that utilizes streaming video accompanied with competency based testing.

Rapid Charge Technologies - Cleveland, Ohio – $25,000

• Rapid Charge Technologies will further develop and commercialize rapid charging technology for lead acid batteries that is based on patented technology created and tested at the University of Georgia Technology. This technology holds the promise of allowing lead acid batteries to be charged in minutes, not hours, and dramatically extend battery life.

Citizen Groove – Cleveland, Ohio – $25,000

• Citizen Groove is developing an innovative, patent-pending, digital music organization system to first enhance all artists networking capabilities, second, to create an easy-to-use music discovery engine for music listeners, and third, to enable the aggregation and supply of critical music market data to industry professionals.

Sooth, Inc. – Beachwood, Ohio – $25,000

• Sooth isdeveloping technology that automates computer network management to provide a less costly, more stable and secure network.

About the LCCC Foundation Innovation Fund

Contributions to the Innovation Fund are fully tax deductible as a result of a landmark ruling by the IRS.  Realizing the potential risks to a foundation’s tax-exempt status for supporting incubator activities, the LCCC Foundation submitted a special request to the IRS seeking permission to accept charitable contributions that would be used for the purposes of the Innovation Fund.  In January of 2006, the LCCC Foundation received a positive ruling, a groundbreaking decision applicable only to the LCCC Foundation and is the only one of its kind in the nation.

To date the Innovation Fund has received generous support from a variety of partners and the local community.  In 2007, the State of Ohio made a major investment of $400,000 through the Ohio Third Frontier Entrepreneurial Support Program.  Additional investments were made by the State: in 2008 in the amount of $500,000; in 2009 in the amount of $1.5 million.  The Third Frontier Project is the state’s largest-ever commitment to expanding Ohio’s high-tech research capabilities and promoting innovation and company formation that will create high-paying jobs for generations to come.

The Innovation Fund focuses on technology opportunities in Ohio’s five high growth industries.  It is a regional fund, providing support across Northeast Ohio’s 21 counties to help great technology ideas develop into viable businesses and thus create jobs in the region.

Recipients of Innovation Fund awards agree to provide an educational experience in entrepreneurship for a student – allowing the student to walk side by side with the entrepreneur without taking on the risk.

The application process for the Innovation Fund is completely web-based.  Applicants are able to submit an application through the fund’s website.  Upon submission, GLIDE and its regional partners representing a network of industry experts, entrepreneurs and investors employ a thorough due diligence process to assess both the technology and the business potential.

For more information about the LCCC Foundation Innovation Fund or to apply, please visit www.lorainccc.edu/if

Garry L. Mrozek, regional president of National City Bank and chairman of YBI’s Board of Directors, notes “Philanthropic support of economic development organizations is integral to the vitality of our community.  YBI helps technology companies reach their growth potential and create well-paying jobs for area residents.”

“YBI is appreciative of these contributions to support YBI’s mission of assisting technology-based entrepreneurs establish and accelerate their scalable, proprietary information technology applications,” states Julie Michael Smith, chief development officer of YBI.

In the past year, YBI has approved six new portfolio companies for occupancy in addition to providing entrepreneurial counseling to non tenant ventures.  In May, it opened INSPIRE Lab, a flexible development suite for very early stage companies and this fall, renovation of the adjacent Semple Building will be complete, offering commercial space for technology-related businesses.

At the Team NEO Economic Development Impact Awards last week, ten awards were handed out recognizing various organizations and initiatives for their positive economic impact our our region.  Here’s a recap of the winners in the various categories:

• Asset Creation: Akron’s BioInnovation Institute
• Business Attraction: Youngstown-Warren Regional Chamber
• Business Expansion: Ashland Area Council for Economic Development, Ashland County, Jackson Twsp.Ashland Area Council for Economic Development, Ashland County, Jackson Twsp.
• Business Retention: City of Akron, Greater Akron Chamber, County of Summit, Summit County Port Authority
• Foreign Investment: Growth Partnership for Ashtabula County
• Fostering Entrepreneurship: Lorain County Community College Foundation
• Marketing Cleveland Plus: Cohen & Co.
• Minority Business Development: City of Lakewood & LakewoodAlive
• Public-Private Partnership: Maple Street Commerce LLC. City of North Canton, and Stark Development Board
• Workforce Development: Advanced Manufacturing & Engineering Center of Cuyahoga Community College

After about the forth or fifth award, I lost count of all the jobs created, millions of dollars invested, and businesses attracted.  Rest assured it was an impressive total.

Three things really stuck out during the awards.  First – the overall coverage of the region by the winners.  From Youngstown to Lorain; from Ashtabula to Canton, great things are happening all over the place.  Second – many of the winners were collaborations themselves, providing examples to others on how to partner and accomplish great things.  Finally – the list above is simply the recognized winner in each category.  For all ten categories, there were another 2-3 finalists in the running (and easily another fifty or so overall submissions).

There is a lot of positive change happening in the region, particularly around entrepreneurial activities and economic development.  NEOinc follows several regional blogs reporting on these topics.  Sometimes the posts shine a spotlight nationally (or internationally) on the region.  Every month we publish a short list of some of the stories we’ve noticed that embody the spirit of achievement, growth and change in our region.

Congratulations to all the winners, finalists and everyone submitting an entry.  In the spirit of Team NEO’s awards, congratulations to our region for recognizing the great work we’ve all done over the past year.  Now, let’s look at what happened last month.

Reflective of the Team NEO awards, this month’s recap is all over the region and state, and definitely highlights job creation, collaboration and economic development of all types.  Here then is NEOinc’s May recap of the articles we feel speak to the growth and positive change that is happening quietly, every day, in our region.

May ‘09 Recap

• CWRU’s med school receives $3M grant
• Ohio’s leadership in logistics
• 125 new jobs
• Huntington Bank, State of Ohio team up for $1B business loan program
• Ohio’s wind turbine (our very own) makes it’s debut
• Beck Center reaches fundraising goal (but you can still help!)
• OEConnections inks deal with Navistar
• Orrville company wins military contract
• Two Northeast Ohio firms team up for $33M Nasa contract
• State gives $8M to Summit, Stark
• Medina collaboration building fiber network
• High Tech jobs increasing in Northeast Ohio
• KeyBank breaking ground in Akron
• Entrepreneur’s EDGE highlights companies pumping $1.6B into the economy
• $9.1M grant to Cleveland Clinic’s Lerner Research Institute
• Jo-Ann Stores first quarter profits nearly triple
• New orders for manufactured goods up by largest amount in 16 months
• Regional Talent Network unveils employment website (another take)

This list certainly isn’t meant to be exhaustive, merely a representative sample of some of the more positive articles we saw throughout the month.  We want to hear from you too! Please use the comment box below to share your thoughts with us here at NEOinc and our other readers.  Come on, you know you want to.

We’re also looking for other blogs to follow that report on positive entrepreneurship and economic development activities throughout Northeast Ohio.  You can review the list below of the blogs we currently follow.  Please post any additional recommendations via the comment box at the end of this post.

NEOinc’s blog reports regularly on entrepreneurial activities within the region, news and successes within the five incubators making up our collaborative, and resources available throughout Northeast Ohio.  If you found this post useful, please consider subscribing to our blog.  Our “Connect With Us” page will give you all the information you need to subscribe via your RSS reader or receive E-Mail updates.

Sources

NEOinc watches the following regional blogs.  Please use our “Contact Us” page, or the comment box below, to recommend a blog not on the list.

• Advance Northeast Ohio – the online home of our region’s economic action plan, which was inspired by Voices & Choices. Learn about the actions our region is taking to grow our economy and engage in conversations that shape the plan and evaluate our performance.
• Brewed Fresh Daily- topical, wide-ranging, and sometimes irreverant, George Nemeth’s blog is a clearinghouse for the pulse of Northeast Ohio.
• Cleveland Plain Dealer’s business blog
• Crain’s Cleveland
• NorTech – NorTech leads the region’s technology based economic development agenda. By supporting and nurturing Northeast Ohio’s most promising technology projects and initiatives, they help to create new technology industries and make the region ’s economy more globally-competitive.
• Ohio Means Business – The OBDC blog is a chance for Ohio executives to share their perspective on how locating in Ohio has enabled them to achieve both their professional and personal aspirations without having to sacrifice one for the other.

After a couple months that were a bit light on the positive news, there was lots to choose from in April.  What was maybe most surprising were many articles about significant capital and job influxes coming into Ohio and Northeast Ohio.  250 jobs here, $14M of investment there, and all of a sudden things aren’t looking so bad after all.

Lastly, if you are a entrepreneur looking for funding for a product-based business, you have until Noon, Friday the 15th to take advantage of the Cuyahoga County New Product Development and Entrepreneurship Loan Fund, administered by MAGNET.  Long term, low interest loans of $15K, $40K and $60K are available through this competitive program.  Details, documents and contacts are all available online.

There is a lot of positive change happening in the region, particularly around entrepreneurial activities and economic development.  NEOinc follows several regional blogs reporting on these topics.  Sometimes the posts shine a spotlight nationally (or internationally) on the region.  Every month we publish a short list of some of the stories we’ve noticed that embody the spirit of achievement, growth and change in our region.

Here is NEOinc’s April recap of the articles we feel speak to the growth and positive change that is happening quietly, every day, in our region.

April ‘09 Recap

• New MAGNET program aims to increase sustainable manufacturing
• Stimulus funds to employ 200 in Lorain County
• How about the billboards?
• JumpStart creates $75M regional impact
• More jobs flow to former Hoover site
• It’s not just about start-ups and investment capital
• Northeast Ohio health care start-ups draw $14M in investment
• BioMedical is thriving in Northeast Ohio
• $29M flows into Northeast Ohio
• DoE launches new agency, announces funding opportunities
• Congratulations to CerviLenz – $4M raise! (okay, this is May news, but we couldn’t resist)
• Is Ohio the Silicon Valley of advanced energy?
• KeyBank sets $3B goal for lending to women-owned businesses

This list certainly isn’t meant to be exhaustive, merely a representative sample of some of the more positive articles we saw throughout the month.  We want to hear from you too! Please use the comment box below to share your thoughts with us here at NEOinc and our other readers.  Come on, you know you want to.

We’re also looking for other blogs to follow that report on positive entrepreneurship and economic development activities throughout Northeast Ohio.  You can review the list below of the blogs we currently follow.  Please post any additional recommendations via the comment box at the end of this post.

NEOinc’s blog reports regularly on entrepreneurial activities within the region, news and successes within the five incubators making up our collaborative, and resources available throughout Northeast Ohio.  If you found this post useful, please consider subscribing to our blog.  Our “Connect With Us” page will give you all the information you need to subscribe via your RSS reader or receive E-Mail updates.

Sources

NEOinc watches the following regional blogs.  Please use our “Contact Us” page, or the comment box below, to recommend a blog not on the list.

• Advance Northeast Ohio – the online home of our region’s economic action plan, which was inspired by Voices & Choices. Learn about the actions our region is taking to grow our economy and engage in conversations that shape the plan and evaluate our performance.
• Brewed Fresh Daily- topical, wide-ranging, and sometimes irreverant, George Nemeth’s blog is a clearinghouse for the pulse of Northeast Ohio.
• Cleveland Plain Dealer’s business blog
• Crain’s Cleveland
• NorTech – NorTech leads the region’s technology based economic development agenda. By supporting and nurturing Northeast Ohio’s most promising technology projects and initiatives, they help to create new technology industries and make the region ’s economy more globally-competitive.
• Ohio Means Business – The OBDC blog is a chance for Ohio executives to share their perspective on how locating in Ohio has enabled them to achieve both their professional and personal aspirations without having to sacrifice one for the other.

The Beachwood Business Development Center is an accelerator for technology-based local and international businesses, providing space, administrative support and technical assistance to help early stage businesses achieve economic self-sufficiency.  It operates in partnership with the Beachwood Chamber of Commerce, the City of Beachwood and Cleveland State University’s Nance College of Business Administration.  Since forming four years ago, the BBDC has attracted over 30 firms from the U.S. and six other countries.  Together those firms have raised over $81 million in equity capital, employed 326 worldwide as of the end of 2008, and house 30 employees today within the BBDC alone.

“We are proud to be included with the other NEOinc technology incubators,” said Vince Adamus, CEO of the Beachwood Chamber of Commerce.  “Many of our client entrepreneurs are on the verge of developing revenue for their innovative services and devices, and their talents and capital add great value to Northeast Ohio.  Participation in NEOinc will allow us to more formally collaborate with the other NEOinc members to the benefit of all of our clients and the region.”

About NEOinc

The Northeast Ohio Incubator Collaborative (NEOinc) provides coordinated services to entrepreneurs desiring to start technology-oriented businesses in the 21 counties of NE Ohio.  It was formed by the Edison funded incubators in NE Ohio; namely The Akron Global Business Accelerator, Braintree Business Development Center in Mansfield, the Great Lakes Innovation and Development Enterprise (GLIDE) in Lorain County, the Manufacturing Advocacy and Growth Network (MAGNET) Incubator in Cuyahoga County, and the Youngstown Business Incubator.  It now includes the Beachwood Business Development Center.  Individually each of these incubators provide high quality managerial and facility services to entrepreneurs including business concept assessment and coaching, links to appropriate sources of funding, links to business specialist resources like attorneys and accountants, and flexible lease terms on low cost office, lab and manufacturing space.  Collectively, the NEOinc incubators serve as a front door “entry point” into the entrepreneurial support network which exists across the region.  Through a recognized point of contact with one of the NEOinc incubators, entrepreneurs of all types throughout the entire NE Ohio region will either be served directly or referred to the most appropriate other support entities.

For more information call Wayne Zeman of MAGNET at 216-432-4197 or Mike LeHere of the Akron Global Business Accelerator at 330-375-2173.

MAGNET administers the New Product Development and Entrepreneurship Program, Product Innovation Loan Fund on behalf of the Cuyahoga County Department of Development.  In the last four years, the fund has provided over $3.5 million for new product development in NE Ohio and $500,000 in additional funds are now available.  Results of the program have been outstanding with loan recipients attracting over $18 million in additional investment, generating almost $9 million in revenue through the sales of over 330,000 product units, and creating 124 jobs.

The process is competitive.  Applicants will have their submissions reviewed and approved by a committee consisting of local business leaders, venture capitalists, designers, entrepreneurs and representatives from Cuyahoga County.  Applications for the current funding round are being accepted with a submission deadline of NOON EDT on Friday, May 15, 2009.  Loans of up to $115,000 can be made in phased increments ranging from $15,000 to $60,000 depending upon how much development has already been completed and what remains to be done.

The loans have an interest rate of 3.5%.  There are no interest or principal payments for the first three years after disbursement.  Small companies of less than $50 million in sales as well as entrepreneurs can use this money to fund their product development process for such activities as market research, patent services, industrial design, engineering and prototyping efforts.  Software development companies are also eligible.

Full details of the program along with application forms are available at http://www.magnetwork.org/programs/cuyahoga-loan-fund.htm.

If you have further questions you can contact Barbara Paul by phone at 216-432-5322, or by email at barbara.paul@magnetwork.org

PS  If you don’t need funding yourself we’d appreciate it if you help publicize this opportunity through your network. Thanks.