Interest rate reduction program now in use in Mahoning Valley

(Boardman) -- Ohio Treasurer Richard Cordray today visited a growing Boardman business, one of several in Mahoning County which are now making use of a job creation and retention tool which was completely unused in this part of the state just six months ago.

Summer Garden Food Manufacturing is one of 15 Youngstown-area businesses, which are making use of Cordray’s GrowNOW interest rate reduction program. GrowNOW has made $3,992,282.25 in investments available for Mahoning County businesses since October 2007. The program allows businesses with fewer than 150 employees to get a lower interest rate on bank loans, giving them easier access to the dollars they need to expand or modernize. Businesses enrolled in the program must create or save one full-time or two part-time jobs for every $50,000 in loan value.

In August 2007 Summer Garden broke ground on a new, 55,000 square-foot manufacturing plant to expand their food manufacturing business, which is best known for the nationally-marketed Gia Russa Select Pasta Sauces and Starletta Organic Pasta Sauce. On the very next day, Treasurer Cordray visited Mahoning County, publicly inviting local small businesses to apply for his interest rate reduction program to grow and save jobs in the area.

“It’s well-documented that the majority of the jobs in our communities are created by small businesses,” said Treasurer Cordray. “They are key in improving Ohioans’ economic growth and financial security. The GrowNOW program was not being used here. So it has been and remains very important to me that those businesses know about it and tap into it, so we can help ensure they survive and flourish and create new jobs.”

Summer Garden CEO Tom Zidian says the GrowNOW interest rate reduction will help his company to create ten new full-time jobs and three part-time jobs. “Our new plant could not be completed without the equipment which we’re buying with this particular loan. Anytime a business can access the money they need to expand, and spend less doing it, it helps to create additional employment opportunities, and that’s what GrowNOW did for us.”

After a bank approves a loan to a small business, the small business can apply for a GrowNOW linked deposit from the Treasury. The business must show that the loan is helping them to create or retain jobs and, if approved, the Treasury will invest in a CD from the bank and accept a reduced interest rate, provided the bank passes that reduction along to the small business.

For more information about GrowNOW, log onto www.GrowNOW.ohio.gov or call 1-800-228-1102.