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Ohio Small Business Grants

Whether you are starting a home-based business or a startup, you probably have several ideas on how to grow, evolve, and sustain your business. This is where Ohio small business grants play a key role. A grant is not just any financial help but a tool that can help bridge the gap between where your company is and where you would like to see it in the near future. If you plan on doing business in Ohio, then it is important to identify the types of grants and other financial options available to you or your company. This article will help you gain knowledge of the various grants, loans, business incentives, and other forms of small business funding that you can benefit from.

Doing Business in Ohio

There are over 900,000 small businesses operational in the state of Ohio and there are several reasons why entrepreneurs prefer this state. One of the top benefits is that your startup can leverage Ohio small business incentives implemented by the state and private organizations. You would be surprised to know that startups and small businesses in Ohio have been able to generate over $1.7 billion in terms of economic output, according to JumpStart’s latest economic impact report. Behind the success of small businesses is easy access to several funding opportunities, including Ohio small business loans and tax credit programs. Today, Ohio is home to several Fortune 500 companies, including Kroger, Cardinal Health, and Amazon, among others.

Why do businesses prefer doing business in Ohio?

As a first-time business owner doing business in Ohio for you can be quite beneficial. The state provides numerous benefits and advantages, especially to small businesses. To start with, the state has one of the lowest tax rates among all 50 states. The state has a thriving industry, diverse talent pool, robust transportation infrastructure, and enjoys high use of technology in most industrial and business environments to support innovation. You can even apply for Ohio small business grants, loans, and different forms of incentives. Let us take a look at some of the top advantages of conducting business in this state:

  • State of Startups – The state of Ohio is considered one of the evolving startup ecosystems in the nation. Ohio companies have received over $1 billion in venture capital investment consecutively for the past 3 years. This is because the state has provided the platform and resources, including Ohio small business grants. The startup ecosystem will help you bolster cross-sector collaborations, like connecting your company to necessary expertise and talent. This will allow you to take your innovation-driven research and development to the next level. This will also ensure that doing business in Ohio has reduced challenges for your company.
  • Cost of Living – One of the important factors that plays a key role when it comes to new business formation or moving a business to this state is the low cost of living. The cost of living takes into account several components like housing, utility bills, cost of food, healthcare etc. If you compare the cost of living in Ohio with the national average, then it is 8 percent lower. Similarly, the housing costs are 22 percent lower while the utility costs are 3% lower than the national average. Some of the cities with low cost of living and strong business infrastructure for your business include Columbus, Cleveland, and Cincinnati.
  • Diverse Talent Pools – Companies prefer doing business in Ohio due to the availability of a diverse talent pool. The state believes that Science, technology, engineering, and math (STEM) will be the primary driver of its economic future. For example, the Ohio STEM Learning Network aims to deliver high-quality professional development and educational support to inspire the next generation of innovators in the state. Apart from this, it is home to several colleges, universities, and technical institutions that create and promote talent.

Small Business Incentive Programs and Grants in Ohio

When you start a new company in Ohio, you can leverage advantages, including benefiting from a wide variety of Ohio small business grant programs. These programs have been created to help new businesses or entrepreneurs move their companies from other states financially. These programs can be categorized into different segments. The segments are small business grants or Ohio small business loans, economic development grants, and state tax credits. Let’s study them in detail.

Small Business Grants in Ohio

Whether you form a small company or large enterprise, Ohio small business incentives will provide you with a distinct advantage. The availability of small-business grants can provide financial support in the initial stage of your business operations. A grant is a type of financial award with the objective of facilitating business goals or incentivizing performance. Grants are Ohio small business loans where you are not required to pay it back. Here is a list of the most popular grant programs in the state for you:

  • The Kitty Fund – If you are a mom entrepreneur or mompreneur, then the Kitty Fund is one of the first Ohio small business grants to apply for. This is a national grant program. It is targeted at mother-owned businesses with at least 2 employees or more. You can apply for this micro-grant program here and receive an award of $1,000.
  • Warrior Rising Grant – If you are a veteran planning to start your company in Ohio, the Warrior Rising Grant can be quite beneficial for you. It is considered amongst the top Ohio small business loans or grants. Warrior Rising is a non-profit organization whose objective is to empower veterans. As a veteran, you can apply for their grant program, and the grant amount awarded can be a maximum of $20,000.
  • Fearless Strivers Grant – The Fearless Strivers Grant has been created specifically for black women-owned businesses. Each year, they conduct a skill-based contest, which you can participate in. The maximum grant amount of $20,000 will be divided among four participants or small businesses.
  • Workplace Wellness Grant Program – This is a type of Ohio small business grants program that is targeted at businesses with 50 or fewer workers, especially those based in high-risk industries. You can participate in this program if your company has less than 50 workers. This program will also be applicable to you if your business operates in such an industry as construction, automotive repair and service, or manufacturing, among others. This program by the Bureau of Workers’ Compensation (BWC) will assist you in creating and implementing a workplace wellness program. As a part of this program, you can receive $300 per participating employee. This payment is made over a period of 4 years, and you can receive a maximum amount of $15,000 per employee policy.
  • Food Supply Chain Guaranteed Loan Program – If you are seeking Ohio small business loans, then the Food Supply Chain Guaranteed Loan Program by USDA is a promising program. It is important to understand that you will have to qualify to be able to get the loan. Loans are guaranteed and can be up to a maximum of $40 million for companies or lenders who qualify. You will be able to qualify if you or your institution is planning to finance food systems projects. The list of eligible lenders includes credit unions, CDFIs, banks, Farm Credit institutions, loan funds, and others.
  • Women-Owned Businesses Amber Grant – As the name suggests, Amber Grant started in 1998 and is targeted at women-owned businesses. If you have an idea and want to transform it into a company, then this may be the right grant for you. Ohio small business incentives and grant programs are currently playing a key role in supporting and promoting women’s entrepreneurship. You can apply for an Amber Grant after registering your business and can get an award amount of up to $10,000. You can even be eligible for a $25,000 grant or even the $35,000 grant normally given by the end of the current year.
  • Restaurant Disaster Relief Fund – Natural calamities can happen just about anywhere. They are unpredictable. Imagine you have started a restaurant recently by taking Ohio small business loans, and then a natural disaster strikes. This could be in the form of an earthquake, fire, hurricane, or flood, among others. This is where the Restaurant Disaster Relief Fund can help you get back on your feet faster. If you or your business is eligible for this grant, then you can get a maximum of $10,000 for utilities, rent, maintenance, and other essential supplies.

Economic Development Grants

Each state offers in-house economic development grant programs. If you start a business in Ohio, you can benefit from the Economic Development Grant Program, which is overseen by the Department of Planning & Community Development (DPCD). If you have failed to obtain Ohio small business loans or funding, you can get first—and second-floor office spaces in prime locations through this program. As the name suggests, this is an Ohio small business grants program that promotes economic development, job creation, and business expansion.

It is important to note that grant decisions will be based on different project factors, like your company’s job creation, project return on investment (ROI), and fixed-asset investment commitment. You can use this grant for infrastructure and fixed-asset investment, such as machinery and equipment, site development, and telecommunication infrastructure.

Are you thinking of starting a New Business in Ohio?

State Tax Credits

One of the factors that have an impact on business finances is that of taxes. Each state in the USA has its own tax structure and tax rates. When you start an Ohio company, it will be subjected to some form of taxes. This is where tax credits can provide much-needed relief. Basically, a tax credit refers to a certain amount of money that you, as the taxpayer, can subtract directly from the taxes owed by you or the company. This is an important type of Ohio small business incentives. The two important state tax credits that you can benefit from are:

  • Ohio Job Creation Tax Credit – This type of tax credit can be quite beneficial to your company if you are going to hire employees. It is a refundable and performance-based tax credit. This tax credit is calculated as a percentage of the created payroll and is applied to your company’s commercial activity tax (CAT) liability. Every company or individual doing business in Ohio has to file commercial activity tax. Now, if you create at least 10 jobs within a period of three years with a specified minimum annual payroll, then your company will be eligible for this tax credit.
  • DataCenter Tax Exemption – This is one of the top Ohio small business incentive programs. If you open an IT infrastructure company or a data center (physical facility) that houses servers, routers, storage systems, firewalls, and application-delivery controllers, then this tax exemption will be beneficial. This is also known as the Ohio Data Center Tax Abatement program. You will need to qualify for this exemption first. It will provide a sales-tax exemption rate as well as a term which may offer a partial or full sales-tax exemption on purchases related to eligible data center equipment. The approval for this tax exemption is provided by the Ohio Tax Credit Authority.

Ready to Start a Business in Ohio?

Whether you start a sole proprietorship or a limited liability company, every business needs some amount of financial assistance upfront or in the operational stages. Ohio small business grants can provide you with the required initial funding. There are a variety of incentive and funding programs implemented in the state that provide Ohio small business loans as well.

IncParadise is an expert in incorporation or new business formation. We are one of the most reputed Ohio registered agent services. We can help you to start a business in this state. We also provide additional services to assist you with all your annual filings, including annual reports.

Form a new business in Ohio today!