Ohio CDC Association (OCDCA) is pleased to announce the award of $5,000 from the U.S. Bank Foundation for the Ohio Microbusiness Development Recoverable Grant Fund.
Previously administered by the state of Ohio, in 2013, OCDCA assumed direction of the Ohio Microbusiness Development Program (OMDP) through an agreement with Ohio Development Services Agency (ODSA). The purpose of the OMDP is to provide funding for community based organizations to further develop a local delivery system that encourages microbusiness development, provides low- and moderate-income (LMI) households with access to capital for business development and self-employment, and creates and retains long-term jobs in the private sector.
Assistance enabled by this funding includes training, TA, or lending, with loan funds repaid into a local microbusiness recoverable grant fund.
Outcomes for our microbusiness program are strong. In 2015 we assisted 1,413 households, expanded 82 businesses and created or retained 277 jobs.
The Ohio Microbusiness Recoverable Grant Fund is a statewide fund that allows OCDCA to provide funds to member organizations in the OMDP to make micro loans to LMI entrepreneur clients. Repaid grants are placed back into the fund so that more loans can be made in the future. After an organization has approved a microloan for its client through its loan approval process, it requests a recoverable grant from OCDCA. A 1:1 match is required to use funds from the recoverable grant fund.
By expanding the OMDP with the recoverable grant fund, we continue lending to LMI entrepreneurs while leveraging the ODSA dollars to meet the biggest need of the OMDP organizations: small business development training, TA and administrative costs.
Funding for the Ohio Microbusiness Development Program comes from the Ohio Housing Trust Fund (OHTF) through the Ohio Development Services Agency (ODSA); therefore, we are very excited and thankful to have these additional dollars for the Recoverable Grant Fund from U.S. Bank Foundation!