Chapter 122:27-1 Loan Program

122:27-1-01 Definitions.

Capitalized terms used in rules 122:27-1-01 to 122:27-1-07 of the Administrative Code shall have the following meaning:

(A) "Distressed lake" means a lake declared by the director of the Ohio department of natural resources as an area under economic distress under division (A)(2) of section 122.641 of the Revised Code and located in a declared disaster area by the U.S. small business administration within the last twelve months.

(B) "Fixed-asset loan program" means a loan program funded through the lakes in economic distress revolving loan program under section 122.641 of the Revised Code to assist eligible businesses and other entities with costs of improvements to real property, machinery or equipment for use in the business.

(C) "Lakes in economic distress grant program" means the grant program funded under appropriation item 195407 pursuant to Amended Substitute House Bill 64 of the 131st General Assembly.

(D) "Micro-loan program" means a loan program funded through the lakes in economic distress revolving loan program under section 122.641 of the Revised Code, to assist eligible businesses and other entities with working capital expenses.

(E) "Program guidelines" means the program guidelines created by the Ohio development services agency to supplement division 122:27 of the Administrative Code and support the administration of fixed-asset loan program and micro-loan program. The current program guidelines can be found on the Ohio development services agency's website at http://development.ohio.gov/bs/bs_busgrantsloans.htm.

(F) "Working capital" means the funding needed to meet day-to-day operational expenses as a measure of current assets minus current liabilities.

Effective: 4/11/2016
Five Year Review (FYR) Dates: 04/11/2021
Promulgated Under: 119.03
Statutory Authority: 122.641(C)
Rule Amplifies: 122.641

122:27-1-02 Eligibility.

(A) Applicants may include, but are not limited to, applicants operating retail and/or services businesses.

(B) Applicants must be physically located in a county that contains all or a portion of a distressed lake.

(C) Applicants must have been in continual operation for at least twenty-four months prior to the date of the lake's declaration as a distressed lake by the director of the Ohio department of natural resources.

(D) Applicants must demonstrate a significant reduction in gross revenue as a result of the economic impact of the distressed lake, as determined by the director of the Ohio development services agency.

(E) An applicant is not eligible for either the micro-loan program or the fixed-asset loan program if it has previously received an award under the lakes in economic distress grant program.

Effective: 4/11/2016
Five Year Review (FYR) Dates: 04/11/2021
Promulgated Under: 119.03
Statutory Authority: 122.641(C)
Rule Amplifies: 122.641

122:27-1-03 Application.

(A) The Ohio development services agency will create an application using a form approved by its director for applicants to apply for either or both the fixed-asset loan program and micro-loan program. Although applicants may apply for both loan programs, applicants may not receive funding from more than one of the programs.

(B) Applicants shall use the application form and submission process established by the director of the Ohio development services agency. If an applicant submits an application for both loan programs, the applicant shall declare on the application which program it prefers to receive funding from.

(C) Applications must be submitted within twelve months after the applicable distressed lake designation by the director of the Ohio department of natural resources. The director of the Ohio development services agency will accept applications so long as funding remains available.

Effective: 4/11/2016
Five Year Review (FYR) Dates: 04/11/2021
Promulgated Under: 119.03
Statutory Authority: 122.641(C)
Rule Amplifies: 122.641

122:27-1-04 Criteria for loan approval.

(A) Applicants must provide evidence of a direct link between the lake's condition as a distressed lake and the applicant's economic circumstances by describing the applicant's economic dependence upon the distressed lake.

(B) Applicants must demonstrate that the loan will help to achieve long-term economic stability in the distressed lake area, pursuant to division (C)(1)(c) of section 122.641 of the Revised Code.

Effective: 4/11/2016
Five Year Review (FYR) Dates: 04/11/2021
Promulgated Under: 119.03
Statutory Authority: 122.641(C)
Rule Amplifies: 122.641

122:27-1-05 Loan requirements.

(A) The interest rate for loans provided under this program shall be zero during the time that an applicable lake has been declared a distressed lake.

(B) The term of the loan may not exceed seven years, unless otherwise determined by the director.

(C) After a previously declared distressed lake is determined to no longer be under economic distress by the director of the Ohio department of natural resources pursuant to division (C)(1)(d) of section 122.641 of the Revised Code, the interest rate for loans provided under this program will not exceed two points less than the prime interest rate as determined by the "Wall Street Journal" (so long as the interest rate for the loan does not fall below zero).

Effective: 4/11/2016
Five Year Review (FYR) Dates: 04/11/2021
Promulgated Under: 119.03
Statutory Authority: 122.641(C)
Rule Amplifies: 122.641

122:27-1-06 Reporting requirements.

(A) An applicant who receives an award under the fixed-asset loan program or the micro-loan program shall submit to the director of the Ohio development services agency a progress report with each disbursement request, as set forth in greater detail in the program guidelines, as identified in rule 122:27-1-01 of the Administrative Code.

(B) An applicant who receives an award under the fixed-asset loan program or the micro-loan program shall submit to the director of the Ohio development services agency an annual report by March first of each year during the term of a loan, as set forth in greater detail in the program guidelines, as identified in rule 122:27-1-01 of the Administrative Code.

(C) The director of the Ohio development services agency may request any other information necessary to perform his or her duties under section 122.641 of the Revised Code.

Effective: 4/11/2016
Five Year Review (FYR) Dates: 04/11/2021
Promulgated Under: 119.03
Statutory Authority: 122.641(C)
Rule Amplifies: 122.641

122:27-1-07 Fees.

(A) There are no application fees or program fees for the fixed-asset loan program or the micro-loan program.

(B) If a completed annual report is not received by the director of the Ohio development services agency prior to March first of each year such annual report is due, a late fee of one hundred dollars shall be assessed for each month the annual report is not received. If an annual report submitted to the director of the Ohio development services agency is not complete, the director of the Ohio development services agency shall notify the submitter of the deficiencies.

Effective: 4/11/2016
Five Year Review (FYR) Dates: 04/11/2021
Promulgated Under: 119.03
Statutory Authority: 122.641(C)
Rule Amplifies: 122.641