Identifies small business as strength in Ohio’s forecast; revamped economic development program adding jobs

(Columbus) - In recognition of National Small Business Week and straight off a statewide tour of small businesses, Ohio Treasurer Richard Cordray is identifying small business as strength in Ohio’s economic forecast.

“Ohio’s economy is poised right now to move into a very positive direction led by small business,” said Cordray. “From construction projects to renewable energy, small businesses are leading the way in job creation, effectively painting a brighter economic future for Ohio.”

In February and March of this year, Cordray traveled the state and met with National Federation of Independent Business members to discuss Ohio’s economy. The tour was prompted by the rebirth of a Treasury economic development program, GrowNOW, targeted at Ohio’s small business. Cordray wanted to see and hear firsthand what small business owners face in today’s economy.

“I was greatly heartened by what I found,” said Cordray. “Ohio has a vibrant small business community with an ingenuity that is priceless. Our small businesses are adapting and growing despite gloomy economic projections. Now is a great time for Ohio to focus on its small businesses.”

Leading by example

Reflecting the potential of Ohio’s small business community, Cordray’s GrowNOW program is taking off. The program has grown 137 percent so far this year when compared with totals for 2007, potentially adding 727 new Ohio jobs. *

GrowNOW, an economic development initiative, offers reduced interest rates on small business loans through participating banks. The reductions are subsidized by a certificate of deposit from the Treasury. By law, the Treasury can invest 12 percent of the state’s portfolio, which is right now about $500 million, into the program. When Cordray took office, only $23 million was being utilized. Today, an average of nearly $1 million every business day is invested into Ohio small businesses, for a total of nearly $104 million earmarked for job creation.

According to the U.S. Small Business Administration, Ohio small businesses have consistently generated 60 to 80 percent of new jobs annually over the past decade.

“Small businesses have the flexibility to adapt to changing economies and most significantly, they create jobs that stay here in Ohio,” said Cordray who recently was named the U.S. Small Business Administration’s ‘2008 Financial Services Champion of the Year for Region V.’

In order to further enhance GrowNOW, Cordray has made the application process even easier by making it accessible online. Small businesses interested in the program can now go to www.grownow.ohio.gov to apply.