Ohio Minority Business Direct Loan Program
Ohio Department of Development — Minority Business Development Division
$45K-$1.5M
1.5% fixed-rate MBE loan
The Ohio Minority Business Direct Loan Program provides low-cost, fixed-asset financing to certified minority-owned businesses in Ohio. Administered by the Ohio Department of Development's Minority Business Development Division, it lends from $45,000 up to $1,500,000 at a deeply subsidized fixed interest rate of 1.5%, with terms up to ten years for machinery and equipment and up to fifteen years for owner-occupied real estate. To qualify, a business must hold State of Ohio MBE certification (or Ohio Minority Supplier Development Council MBE certification), be located and operating in Ohio, and demonstrate that the funded fixed-asset project will create or retain jobs for Ohioans. Funds support businesses in commerce, manufacturing, research and development, or distribution.
- Funding type
- Loan
- Level
- State
- Amount range
- $45,000 – $1,500,000
- Realistic amount
- Award size scales with the fixed-asset project (equipment or owner-occupied real estate) and…
- Deadline
- Rolling — applications accepted on an ongoing basis subject to funding availability.
- Status
- active
- States
- Ohio
- Payment model
- loan
Who qualifies
- Must hold State of Ohio MBE certification or Ohio Minority Supplier Development Council MBE certification
- Principal place of business and operations located in Ohio
- Fixed-asset expansion or retention project that will create or retain jobs for Ohioans
- Business engaged in commerce, manufacturing, research and development, or distribution
- Loan used for eligible fixed assets (machinery/equipment or owner-occupied real estate)
- Business must be three (3) years or older and demonstrate three (3) consecutive years of revenues
- Borrower must contribute a minimum 10% equity toward the project (MBDD funds up to 75%, with ~15% from a bank or other third-party lender)
Hard requirements
- Reserved for minority owned businesses
What it covers
Eligible expenses
- Machinery and equipment
- Owner-occupied real estate (acquisition/renovation)
- Fixed-asset expansion or retention projects in commerce, manufacturing, R&D, or distribution
Ineligible expenses
- General working capital not tied to the fixed-asset project
- Refinancing unrelated debt
- Projects with no Ohio job creation or retention
- Non-owner-occupied / speculative real estate
How to apply
-
1
Obtain State of Ohio MBE certification
Confirm or obtain State of Ohio MBE certification (or Ohio Minority Supplier Development Council MBE certification). A Minority Business Assistance Center (MBAC) can help with certification.
~8 hrs
-
2
Contact the Minority Business Development Division
Reach out to MinorityBizFinance@Development.Ohio.Gov to discuss the fixed-asset project, financing need, and job creation/retention impact.
~2 hrs
-
3
Assemble the loan application and financials
Prepare business financials, the fixed-asset project description and quotes, job impact projections, and supporting documentation for the direct loan request.
~12 hrs
-
4
Underwriting and loan closing
The Division underwrites the request, sets the loan size within the $45K-$1.5M range at the fixed 1.5% rate and applicable term (up to 10 years equipment / 15 years real estate), and closes the loan.
~4 hrs
The 1.5% fixed rate is far below market, so the binding constraints are the MBE certification and a defensible job-creation/retention story — not your credit pricing. Start the State of Ohio MBE certification early (a free Minority Business Assistance Center can walk you through it); applicants who arrive already certified move much faster.
Deadline & timing
Direct loan applications are processed on a rolling basis through the Minority Business Development Division; contact MinorityBizFinance@Development.Ohio.Gov to begin. Subject to available program funding.
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Last reviewed 2026. GrantCompass is an independent funding-discovery tool and is not affiliated with any government agency. Always confirm details on the official program page.