ReEnergize Ohio for Small Businesses
Reducing the Cost of Small Business and Improving Energy Performance
ReEnergize Ohio is a partnership between the State Treasurer’s office and eligible banks designed to invest in Ohio’s small business community. It supports small businesses in improving their energy performance. Through ReEnergize Ohio, small businesses receive up to a 3% interest rate reduction on new or existing loans when at least 50% of the loan funds are used to implement energy-efficient upgrades.
ReEnergize Ohio: Provides up to a 3% interest rate reduction Applies the interest rate reduction on up to $550,000 of a new or existing loan for four years Requires at least 50% of the loan proceeds be used for energy-efficient upgrades
How Do Small Businesses Qualify?
Small businesses must meet the following requirements: MUST have headquarters located in Ohio MUST have less than 150 employees MUST have a majority of employees be Ohio residents MUST be organized for profit MUST maintain offices and operating facilities exclusively in Ohio MUST use at least 50% of the loan proceeds for qualifying energy-efficient upgrades MUST be able to save or create jobs in Ohio
What Is The Process?
Follow these simple steps to complete your application: Visit our website at www.ReEnergize.Ohio.gov to view a list of eligible banks Apply for a small business loan at an eligible bank and establish an interest rate Complete an easy ReEnergize Ohio online application or paper application Submit either purchase receipts, a firm quote or contract detailing improvements to be performed with the ReEnergize Ohio application If approved, the Ohio Treasury deposits funds at an eligible bank in an interest bearing financial instrument In turn, the bank uses the interest generated to provide the rate reduction
What Upgrades Are Eligible?
Eligible energy-efficient upgrades span a wide array of products and renovations including but not limited to:
Lighting and system controls Heating and cooling systems Renewable energy systems
Weatherization projects Energy-efficient appliances, equipment and vehicles
Frequently Asked Question:
Q: What is ReEnergize Ohio? How does it work?
A: ReEnergize Ohio offers up to a 3% interest rate reduction on new or existing small business loans. Small businesses may apply the interest rate reduction on up to $550,000 of the loan, although loan amounts may be greater. The ReEnergize Ohio reduction lasts for four years. For more information on the application process and program requirements, please visit our website at www.ReEnergize.Ohio.gov or call 1-800-228-1102, option #3.
Q: How can my small business qualify for ReEnergize Ohio?
A: To qualify, the business must use at least 50% of the loan proceeds for energy-efficient upgrades and commit to creating or saving jobs.
Q: What happens after the first four years of the loan?
A: The interest rate reduction is for a single term of four years. The business loan’s interest rate will return to the normal borrowing rate agreed upon by the bank and the business. There is not an option to renew.
Q: Can I apply ReEnergize Ohio to an existing loan?
A: Yes. As long as the business uses at least 50% of the loan proceeds for energy-efficiency upgrades and has met the other program requirements, the rate reduction may be applied to an existing loan.
Q: Is there an annual application period or deadline?
A: No. Approval decisions are made on a first-come, first-served basis. The Ohio Treasury accepts applications year-round. For more information on the application process, please visit our website at www.ReEnergize.Ohio.gov or call 1-800-228-1102, option #3
Q: How does the interest rate reduction work?
A: The bank makes credit decisions as to the loans for small businesses. If approved, the Ohio Treasury deposits funds at an eligible bank in an interest bearing financial instrument. In turn, the bank uses the interest generated to provide the rate of reduction. The Treasurer’s office received the original investment back, as well as a reduced return on investment. The state is still earning interest on its money, but also leveraging its resources in local communities. The Ohio Treasury does not loan money to either the bank or the borrower – the Treasury only invests money.
Q: What if the terms of my bank loan exceed the ReEnergize Ohio limit?
A: The length of your loan and the amount of your loan can be greater, but ReEnergize Ohio will only reduce the interest rate for the first four years on the first $550,000.
Q: Can I use this with other programs, such as an SBA loan?
A: Yes. The Ohio Treasury encourages smart business and believes Ohio’s business owners should have access to all the support for which they are eligible.
Q: Can a business participate with more than one loan in the same lending institution?
A: Yes, ReEnergize Ohio can be applied to multiple loans, but the interest rate will only be reduced on up to $550,000 of the loans. Loans with amounts exceeding $550,000 will revert to the interest rate established by the lending institution.
Q: Can I use ReEnergize Ohio to purchase real estate for the business?
A: Yes, in some circumstances this type of purchase may qualify for ReEnergize Ohio. As long as at least 50% of the loan proceeds are being used to make the small business more energy efficient, the purchase may meet program requirements.
Q: Are franchises eligible to participate in ReEnergize Ohio?
A: All franchises will now be eligible to apply for ReEnergize Ohio, as long as the current fiscal year funding for all Economic Development Programs is below capacity. The Economic Development Department within the Ohio Treasury may invest up to 12% of the state portfolio in linked deposit programs. Capacity is defined at 90% of the overall Economic Development funds for the fiscal year (12% of the state portfolio). When the current fiscal year funding is above capacity, no franchise will be approved unless the business is located in a county with an unemployment rate above the Ohio statewide average.
Q: Can a small business owner participate in ReEnergize Ohio more than one time?
A: Yes, in some situations a small business owner can participate more than one time. The small business owner can participate more than one time for the same facility or property, as long as the aggregate total is less than or equal to $550,000. The small business owner can also participate in ReEnergize for separate properties or facilties by completing separate applications.
Learn more about ReEnergize Ohio at www.ReEnergize.Ohio.gov or call 1-800-228-1102, option #3