Image credit: The Daily Jeffersonian
For those who dream of starting a small business, even in tough pandemic times, help is available.
Ohio Small Business Development Centers and Guernsey County Port Authority have programs to assist potential small business owners or help current small business owners expand.
The Guernsey County Port Authority can offer loans up to $25,000, through the US Department of Agriculture, with interest rates of 1 percent below prime.
“Some people have a dream, and we want to try to help them establish that,” said Norm Blanchard, economic development director of the Cambridge Guernsey County Community Improvement Corporation.
According to Blanchard the process is relatively easy and begins with the submitting of an application and a $100 application fee to the Guernsey County Port Authority.
The applications are reviewed by a loan committee, consisting of three Port Authority members and three bankers, and the applicants can meet with the committee. If the committee and port authority board approve a loan it then goes to Omega for closing.
“The committee even though there are some bankers on it, we take the approach that we want to make the loan,” Blanchard said. “it’s not like we are throwing up roadblocks. We want to make the loan.”
According to Blanchard, the Port Authority has probably made more than a couple loans that a bank probably would not have for a start up business.
“We have been successful that way and in 20 years we only had two of them fail so our track record has been pretty good in judging not only the plan but the people that are applying,” Blanchard said.
Blanchard noted that a lot of the loan applicants go through Cindy Voorhies at the Small Business Development Center before coming to the Port Authority to apply for the loan. She describes the Small Business Development Center as a no-cost resource to those individuals interested in developing a small business as well as those who are already in business.
“We work with them throughout pretty much every stage of their business development, business growth, daily operations,” Voorhies said.
The center also works with clients on hiring processes, developing manuals for their employees, strategic planning, financials and more.
Voorhies puts applicants on a business projection plan and assist with state certifications or licensing and calulates projected income, according to Blanchard.
“We do have a requirement that you create at least one job for every $10,000 that we loan but, if you are applying you automatically have one job because you are creating a job for yourself,” Blanchard said. "For a $25,000 loan, two jobs generally fill the application requirements.” The business has to be located in the county, although the applicant can live elsewhere.
The Port Authority currently has approximately 10 opens loans. Over the past 20 years, it has averaged two loans a year.
The Port Authority just received a second grant of $50,000 from the Department of Ag which will require a matching amount from the Port Authority.
Blanchard estimates the Port Authority could potentially make five to six loans at $25,000 each this year.
More information on the Ohio Small Business Development Center can be found at https://sbdc.ohio.edu.
Source: https://www.daily-jeff.com/story/news/2021/02/21/loans-and-resources-available-those-wanting-start-businesses/4504889001/