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Business Growth Acceleration Program
Cuyahoga County created the Business Growth Program to enhance the growth opportunities and maximize the potential of businesses and industries already in the region. The Program provides Economic Development Loans to businesses that are relocating, expanding or building new facilities and creating and retaining jobs in Cuyahoga County. Economic Development Loans are structured to leverage private investment and stimulate business expansion and growth. The County offers subordinated long-term, fixed-rate gap financing at below-market rates to businesses that generally have difficulty securing capital for growth due to collateral and equity shortfalls.
Use of Funds: - Fixed Asset Financing only
- Land & Building Acquisition
- Building Improvements/Renovations
- New Construction
- Purchase of Machinery & Equipment
- For-profit commercial, industrial or service businesses that expand in or move into the County
- Business must have 3 years prior financial history
- Business must demonstrate adequate collateral, credit and capacity to repay the loan
- Businesses must provide a minimum of ten percent (10.00%) equity
Application and Review:
- Application includes but is not limited to: business summary, operational history, description of products and services, balance sheet and profit and loss statement, existing and projected cash flow, sources and uses of funds, existing debt schedule, personal financials, and collateral verification
- Applications are reviewed and underwritten by County DOD based on but not limited to factors such as: ability to cover debt service, collateral value, the number of high-value jobs created, private investment participation
- After review, loan packages are presented to the Cuyahoga County Community Improvement Corporation (CCCIC) Economic Development Loan Committee for a funding recommendation and then presented to the appropriate County approval body for final approval of the loan
The County works with multiple public and private sector partners to leverage investment and address funding gaps for projects to with significant economic development benefit. Projects are funded primarily through owner equity and private bank financing, with Economic Development Loans available for “gap financing”. County Economic Development Loans never exceeds 40% of any project.
- Loan Amount: Up to 40% of Total Project Cost, with a maximum loan amount of $1,500,000 and a minimum loan of $150,000
- Interest Rate: Below market rate, with a typical interest rate between 2% and 4% fixed for the term of the loan
- Term/Repayment: 5 - 10 years leasehold improvements, 7 - 10 on machinery and equipment, Up to 15 years on land and building. Borrowers could be required to repay the full amount of County loan if it moves, sells, fails to complete the project, or fails to create the requisite jobs
- Forgiveness Terms: N/A
- Security/Collateral/Guarantor(s): The County will secure a second-position UCC lien and/or mortgage on the collateral asset being financed with a LTV up to 90%.
- Jobs Created/Retained: The program requires job creation of 1 new job for each $35,000 of funding. All companies are required to execute a workforce cooperation agreement.
- Economic Impact: The program increases the flow of private investment by providing a loan for the difference between what a business may need for a project, and the combined amount that they have available through equity and from their lender.
- Community Benefit: The County supplements private financing in order to increase the number of credit worthy economic development projects, enabling job creation projects to proceed that would otherwise not have taken place.
Swift Filters is a second generation, family owned business that was established in 1957. The company manufactures specialty filters used in applications for air-filtration, hydraulic oils, oil and water separation and specialty fuels. All of the company’s products are manufactured in the USA at their facility located in Oakwood Village, Ohio. They service the Department of De¬fense, automotive (NASCAR), aerospace, chemical and fluid power industries and most recently the oil and gas industry. The Company is ISO 9001:2008 certified and is listed as one of Weather head’s Top 100 companies in Northeast Ohio.
The Company received a $1,260,000 Cuyahoga County Economic Development Loan for a freestanding 42,500 sq. ft. facility in Oakwood Village. The County loan allowed the company to leverage funding from Liberty National Bank to financing the expansion of their filter manufacturing operation. The total cost of this expansion project is estimated at $3,150,000. The Company will create 36 new jobs within 3 years.
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