Ohio Enterprise Bond Fund
Conduit Financing Programs
The Treasurer of State currently serves as issuer to the Ohio Enterprise Bond Fund program, for which no state credit is pledged.
Summary of the Ohio Enterprise Bond Fund Program
The Ohio Enterprise Bond Fund (OEBF) was created in 1988 to promote economic development, create and retain quality jobs and assist governmental operations. The program enables non-profit and for-profit borrowers to access the national capital markets through bonds issued through OEBF. The program is administered by the Ohio Department of Development and financing is provided by the Ohio Treasurer of State.
Ohio Constitution, Article VIII, Section 2i; Ohio Revised Code, Chapter 166
Link to the Ohio Enterprise Bond Fund
More About the Ohio Enterprise Bond Fund
How does the Ohio Enterprise Bond Fund work?
Once a borrower has been approved by the Ohio Development Services Agency (DSA), the Ohio Treasury issues OEBF bonds and the bond proceeds are lent through the DSA to the borrower. Following the bond issuance, the borrower is responsible for repaying principal and interest on the loan.
Eligible borrowers include corporations, partnerships, sole proprietorships, limited liability companies or limited liability partnerships engaged in the creation or retention of jobs in industrial, manufacturing, commerce, research and development or distribution ventures.
Eligible projects include, but are not limited to:
• Purchase of land and existing buildings
• New building construction or renovation
• Purchase of machinery and equipment
• Long-term leasehold improvements
• Public improvement projects that directly benefit business development
The OEBF may provide financing up to 90 percent of the total eligible project costs that are directly related to the fixed-asset purchase. The minimum borrowing amount is $1.5 million and the maximum amount is $10 million.
Benefits of using the OEBF
• Borrowers can utilize OEBF’s “AA+” Standard &Poor rating to achieve a low cost of funds.
• Borrowers have access to the national capital markets without providing any further credit enhancement.
• Pre-established legal documents and issuance process provides for an efficient and streamlined closing process.
• Borrowers may receive favorable loan terms tailored to their needs such as fixed interest rates, longer repayment terms and fewer financial restrictions and requirements.
To request more information on the Ohio Enterprise Bond Fund, please visit the Ohio Development Services Agency.