The U.S. Bureau of Labor Statistics says sustained business formation is necessary to maintain economic recovery. In some areas of the country, new companies and new jobs are needed more immediately. For instance, the BLS reports that Ohio currently has an unemployment rate of 11.5 percent.
Ohio legislators are trying to encourage small business expansion and hiring with increased access to loans to try to recover the local economy. According to Med City News, the Ohio House of Representatives has proposed a law that will create a loan fund of up to $100 million for the state’s small businesses.
The money would be used to help growing companies with between $1 million and $50 million in sales. The funds would be administered by the Ohio Department of Development and loans would be awarded based on the economic needs of the areas in which eligible businesses are located.
While the legislation is pending, it seems a number of Ohio lenders have been partnering with the SBA to assist SMBs in the trying climate. According to the Business Courier, Ohio’s Horizon Certified Development Company – an affiliate of the ODD – awarded $18 million in loans in 2009, helping create 250 jobs.