Watch a video to learn more about the program and hear the success stories from the companies that have used it:
Program Description:
The Cuyahoga County Board of Commissioners created the New Product Development and Entrepreneurship Program to assist entrepreneurs and small business in bringing innovative ideas to the marketplace. The program is administered by the Department of Development in partnership with the Manufacturing Advocacy & Growth Network (“MAGNET”). Our common goals are to encourage innovation, support entrepreneurs, diversify and grow small businesses and create manufacturing jobs in Cuyahoga County.
The New Product Development & Entrepreneurship Program offers loans for three phases of product development: Product Feasibility, Concept Development, and Engineering/Prototype Development. Up to a total of $115,000 can be awarded for the development of one product in three phases.
Eligible Applicants:
Individuals or businesses with total sales of less than $50 million per year are eligible to apply. Successful applicants must commit to manufacturing their new product in Cuyahoga County. Finalists will be subject to a Credit Report review.
Applications:
The current application deadline is: Friday, May 15, 2009.
(If this date has passed please check back periodically for future funding rounds.)
For more information and to submit an application, please visit MAGNET or contact.
Barbara Paul
MAGNET
1768 East 25th Street
Cleveland, OH 44114
Competitive Review Process:
Each application is submitted to the NPD Review Committee, which is made up of industrial designers, marketing professionals and venture capitalists and include experts from organizations like The Cleveland Institute of Art, Cleveland State University, and Jumpstart. The Review Committee uses a “blind” process to ensure objectivity - names are blocked out and a number is assigned. The committee reviews each application and recommends the most qualified projects for funding. The committee looks for projects that are innovative, products that can be made cost effectively in Cuyahoga County, product designs that have market potential and ideas that meet an unmet need. Awards are announced within 60 days of application.
Loan Terms:
Interest on NPD Loans for the first 36 months will be at a rate of 0% with the remaining seven years at a rate of 3.5%. Loan payments are deferred for three years as well. The County requires that the new products be manufactured in Cuyahoga County for at least seven years after development. The only security interest is a UCC filing on the intellectual property related to the funded project. The County has no ownership in the project.