Get Extra Collateral to Fund Your Ohio Business. Get Access to More Funds in 10 More States

One of the biggest roadblocks in business funding for newcomers is finding the collateral that will make you a good loan prospect.  Many just don't have enough.  The Ohio Development Services Agency has a fairly new program to help.  It's the Collateral Enhancement Program.  It can provide up to 30% of the loan collateral for a small business (up to 50% for certified minority or women-owned businesses, or businesses in the HUB Enterprise zones. While business owners cannot apply for the collateral, lenders can.  However, if you think collateral might be an issue, you can contact a local Development Services Agency office and ask them to direct you to a lender that participates in the program. 

This program is the result of a grant from the U.S. Treasury Department to enhance the access of capital to small businesses in 11 states.  If you a small business owner in the other ten states-- Tennessee, Iowa, Idaho, Texas, Mississippi, Louisiana, Florida, Virginia, Oregon, and Alabama-- use the links to your state's business development office to find out what programs might be offered in your state.

Could You Be a Hero? (For Home-Buying Purposes)

Besides rebuilding neighborhoods with new homeowners, some home buying programs aim to help particular groups of people move into target neighborhoods—communities that are having hard times, but that community leaders would like to see rebuilt. Who would they like to fill the neighborhoods with? Teachers, paramedics, cops, and other helping professionals, that’s who. Some areas in need of educators and other service professionals like the police or EMS technicians simply want to add affordable housing to the attractions they can offer.

A federal program, the Good Neighbors Next Door program at HUD was created to encourage police officer, firefighter, EMS and teacher home ownership in targeted areas. If people in these professions buy a HUD home in a targeted “revitalization area,” they can get a 50% discount off the price of the house. If you qualify as a member of one of these professions, and the house you choose is in a revitalization area, you commit to living in the house as your sole home for the next 36 months.

Ohio now offers a first-time home ownership program for firefighters, police officers, veterans, healthcare workers, paramedics, EMTs, teachers, and active military. It is the Hero's Program. Rates are one quarter percent lower than they are for Ohio's other first time home buyer program. This is a much more inclusive program—the homes are not only homes sold by a particular agency, and are not restricted to revitalization areas. For more information, see the website or call 1-888-362-6432.

Mississippi is responding to a shortage of teachers in rural areas by creating a Housing Assistance for Teachers program. Teachers who agree to teach in target areas of rural Mississippi can get downpayment assistance in purchasing a home.

Check your own state’s housing finance authority to find out if you are a “house buying hero” in the state where you live, or one you intend to move to.

Takin' It To The Bank

In your quest to find out about all the money you can get, there is free, skilled, legit help along the way. People turn up their nose at public assistance and food stamps, but the fact remains that, along with earned income tax credits, these are some of the biggest financial programs available. There are also sources of financial help you may not know about--help with fuel bills or insulation, for instance. And, for people in Arkansas, Florida, Kansas, Maryland, Mississippi, Ohio, Pennsylvania, Texas, and the District of Columbia, there are people who can tell you what major financial help programs you are eligible for.

The Benefit Bank has a network of agencies that host them throughout each of these states. When you go to their website, you can enter your address, city and state, and pick which services you would like information about: taxes, benefits, or voter registration, and click "search." It will pull up a list of Benefit Bank places that provide counseling. You can call the one most convenient to you and set up an appointment to meet with them. You will need to bring supporting documents, like pay stubs, so ask what sort of documents you need. Check out this site and find someone who can really help you get money.