About the Ohio Enterprise Bond Fund (OEBF)
The Ohio Enterprise Bond Fund (OEBF) makes funds available to eligible borrowers for the purpose of purchasing land, buildings and equipment that will create and retain jobs and further promote economic development throughout the State of Ohio.
The OEBF was developed in 1988 by the Ohio Department of Development (ODOD) in conjunction with the Ohio Treasurer in order to provide a source of low cost borrowing for qualified Ohio businesses. Since 1988 the Ohio Treasury has issued 99 individual OEBF project bond issues in over 38 counties totaling over $479,390,000 in par amount.
How does the Ohio Enterprise Bond Fund work?
Once a borrower has been approved by ODOD the Treasurer’s Office issues OEBF bonds and the bond proceeds are lent by ODOD to the borrower. The State of Ohio utilizes the strength of the OEBF’s “AA-” S&P rating to finance eligible projects at a low interest rate. Following the bond issuance, the borrower is responsible for repaying principal and interest on their loan.
Who Qualifies?
Eligible borrowers include corporations, partnerships, sole proprietorships, limited liability companies or limited liability partnerships engaged in the creation or retention of jobs in industrial, manufacturing, commerce, research and development or distribution ventures.
Eligible Projects
Eligible projects include, but are not limited to:
- Purchase of land and existing buildings;
- New building construction or renovation;
- Purchase of machinery and equipment;
- Long-term leasehold improvements; and,
- Public improvement projects which directly benefit business development.
Available Funding
The OEBF may provide financing up to 90% of the total eligible project costs that are directly related to the fixed-asset purchase. The minimum borrowing amount is $1.5 million and the maximum amount is $10 million.
Benefits of using the OEBF Program
- Borrowers can utilize OEBF’s “AA-” S&P rating to achieve a low cost of funds;
- Borrowers have access to the national capital markets without providing any further credit enhancement;
- Pre-established legal documents and issuance process provides for an efficient and streamlined closing process; and,
- Borrowers may receive favorable loan terms tailored to their needs such as fixed interest rates, longer repayment terms and fewer financial restrictions and requirements.
OEBF Approval Process
| Step 1: |
Contact the Ohio Department of Development (ODOD) at 614-455-4551 or toll free at 1-800-848-1300 x64551 to discuss the program requirements or click on the Web site here; |
| Step 2: |
Request a Financial Assistant Application and return the completed application to ODOD; |
| Step 3: |
An eligibility review will be conducted by an ODOD credit analyst; |
| Step 4: |
If the application is approved, the application will be presented to the Development Financing Credit Advisory Council (DFAC) for review and recommendation; |
| Step 5: |
The application will be presented to the State Controlling Board for final approval; and, |
| Step 6: |
If approved by the State Controlling Board, the bond documentation and sale of the transaction will take an additional 30 to 60 days before the funds will be disbursed to the borrower. |
Term Sheet
To request a detailed term sheet for any OEBF transaction please contact the Treasury’s Office of Debt Management at 614-466-7752.
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