Economic Development Program

The Economic Development Program is administered by the Ohio Department of Development through its Office of Community Development as part of the state’s broader Community Development Block Grant framework. The program is designed to support economic growth and job creation for low- and moderate-income individuals by providing financial assistance to projects that expand or retain businesses within Ohio communities. The funding mechanism reflects a public-private partnership structure in which local governments act as intermediaries to deploy resources that directly benefit private sector job creation. The primary purpose of the program is to stimulate local economies by supporting fixed asset investments and infrastructure improvements tied to business expansion. Eligible uses of funds include financing for land acquisition, building construction or rehabilitation, and equipment purchases. In addition, funds may be used for public infrastructure improvements that are necessary to support business operations, such as utilities or access improvements. The program also allows for supplemental funding to support job training initiatives for employees whose positions are created or retained through funded projects, with an additional allocation of up to 50,000 dollars available for this purpose. Funding is structured in two primary ways: as low-interest loans and as grants. In loan scenarios, the state awards funds to local governments, which then lend the funds to private businesses for eligible fixed asset projects. These funds are repaid to the local government and may be recycled through a revolving loan fund. In grant scenarios, funds are provided to local governments for public infrastructure improvements and are retained as grants rather than repaid. All funding is subject to a cost-per-job limitation, ensuring that investments align with job creation outcomes, and total awards are capped at 500,000 dollars per project. Eligibility for the program is limited to non-entitlement jurisdictions within Ohio, meaning that only certain cities and counties that do not receive direct federal CDBG allocations may participate. Counties must apply on behalf of smaller jurisdictions such as villages and townships, and they may also apply on behalf of cities within their boundaries. While private businesses ultimately benefit from the funding, they are not direct applicants; instead, local government entities serve as the formal applicants and administrators of the funds. The application process begins with a mandatory pre-application, which must be submitted and approved before a full application can be developed. Pre-applications are accepted beginning in early summer each year, and funding is awarded on a first-come, first-served basis until available funds are exhausted. Applicants must coordinate closely with county commissioners or city administrators to prepare and submit materials through the designated online portal. Following approval of the pre-application, a complete application package must be submitted for formal review. Evaluation of applications focuses on factors such as job creation or retention, benefit to low- and moderate-income individuals, and alignment with program guidelines and cost-per-job thresholds. The Department of Development retains discretion to adjust award amounts based on its assessment of project viability and impact. If awarded, local government recipients are responsible for ensuring compliance with all applicable federal and state regulations and for overseeing project implementation through completion. The program operates on an annual cycle, with pre-applications opening each year and funding distributed until depletion. While specific closing dates are not established due to the rolling nature of awards, applicants are encouraged to submit early to secure funding. Additional program details, including regulatory requirements and planning documents, are available through the state’s consolidated planning resources and supporting documentation.