Minority Business Enterprise Division Office of Management and Technical Services Office of Minority Financial Incentives Ohio Procurement Technical Assistance Centers

Minority Business Enterprise Division Office of Management and Technical Services provides funding to the Minority Contractors and Business Assistance Program (MCBAP) Locations: Akron, Cincinnati, Cleveland, Columbus, Dayton, Portsmouth, Toledo and Youngstown  Technical assistance  Training  Access to Local Resources  No-cost Access to Plans, Specifications and Bid Documents  Access to Capital  Assistance with Business Plans and Financial Statements  Assistance with federal, state and local certifications

Minority Business Enterprise Division State Certified Minority Business Enterprise (MBE) Eligible businesses are defined as being at least 51% or more owned and controlled by an individual belonging to one of the following ethnic groups: African American Asian American Hispanic Native American

Minority Business Enterprise Division Encouraging Diversity, Growth and Equity (EDGE) As the name suggests, the State of Ohio’s EDGE Program provides an EDGE to small businesses by Encouraging Diversity, Growth and Equity in public contracting. EDGE is an assistance program for economically and socially disadvantaged business enterprises.

Minority Business Enterprise Division State Certified Encouraging Diversity, Growth and Equity (EDGE) Firm Eligible businesses are defined as having at least one objective distinguishing feature such as: Socially disadvantaged criteria (Must meet at least one criterion): Race Ethnic Origin Gender Physical/Mental Disability Long-term Residency in an Environment isolated from mainstream Ohio Other Objective Relevant Reason(s) Eligible Businesses must also meet both of the following criteria: Economically disadvantaged owners must meet the following thresholds: Personal net worth of each owner must not exceed $250,000 at program entry Personal net worth of each owner must not exceed $750,000 during program participation

Minority Business Enterprise Division State Certified MBE 15% of supplies and services from state agencies, colleges and universities are set aside to be purchased from state certified MBE firms according to state law. State Certified EDGE 5% goal for state agencies, boards and commissions, state colleges and universities in awarding contracts to certified EDGE businesses. EDGE goals apply to procurements of supplies and services, professional services, information technology services, construction and professional design services.

Minority Business Enterprise Division Business Development Assistance + Professional Training and Advice + Financial Assistance +The Right Business Environment = SUCCESS

Minority Business Direct Loan Program w Must Be a STATE or COUNCIL CERTIFIED MBE w FIXED ASSET Financing (Land, Building, Machinery & Equipment, Renovations) w Minority Business Direct Loan 40%, Bank 50%, Equity 10% w 3% fixed interest rate w $45,000 up to $450,000 w $35,000 for Every Job Created/Retained w Maximum 15 year term for real estate and 10 years on M&E w Benefits: shared risk, lower overall cost of borrowing Minority Business Enterprise Division

Minority Business Bonding Program wMust be a STATE CERTIFIED MBE and Denied Bonding by Two Surety Companies wBid, Performance and/or Payment Bonds w$1,000,000 Maximum Bonding Line w2% Premium on Each Bond Issuance wJob creation and/or retention wBenefits: Increases contracting opportunities with local and state entities Minority Business Enterprise Division

Capital Access Program wSimilar to a loan guarantee wMust be a small business with less than $10 million in sales wObtain a business loan from a Capital Access Lender w3% to 6% Contribution Fee, 10% Contribution Fee from the State w$250,000 Maximum for Lines of Credit w$500,000 Maximum for Fixed Assets wContribution Fees provide additional security to the Lender wBenefits: Encourages Lender to make loans they may otherwise not make without additional security on the loan Minority Business Enterprise Division

Key Steps in Establishing a Program wIdentify your constituents needs wDetermine program structure and identify funding sources wIdentify supporters (and detractors) wSecure buy-in from program benefactors wIdentify strong local or state legislative sponsors wObtain statistical and/or anecdotal data to support wEstablish program data collection process and procedures prior to roll-out wMarket continually wReview and Reevaluate Periodically Minority Business Enterprise Division

Contact Information Sharon Smith (614) or Natalie Burley (614) or Minority Business Enterprise Division