Will the Ohio Air Quality Development Authority (OAQDA) become the main financial contact for my project?
No. Your firm’s relationship and financial position with your lender will not change due to OAQDA’s involvement.
Is OAQDA a loan fund?
No! OAQDA is a conduit through which your business receives tax incentives if the project qualifies.
How long does the application process take?
The application process takes weeks not months. Applications submitted twenty (20) days prior to the OAQDA meeting can be considered; meetings generally are held the second Tuesday of every month. Closing can be set as soon as all parties have signed off.
What do I need to do?
Contact the OAQDA staff at 614/224-3383. They can answer any questions about the application process. Technical lending questions can be answered by NatCity Investments, OAQDA’s financial advisor, at 216/575-3250. After receiving the application, legal counsel will contact you to begin document review.
What does it take to get started?
Contact OAQDA, see if your project qualifies and file an application.
What is the approval process?
Since we work with the financing you bring to the project, OAQDA does not change the lender’s approval process. The lender-business relationship is the same as always. The lender will need to approve financing. OAQDA approves the eligibility of the project under the air quality/energy efficiency guidelines.
How can I calculate savings?
See the Tax Savings Calculator in the “Forms” section.
When should OAQDA be contacted?
As early as possible.
Is my business required to pay prevailing wage on construction and installation?
Yes. Projects financed through OAQDA are subject to Ohio's prevailing wage law. Determination of project coverage and the appropriate wages is made by the Ohio Department of Commerce Division of Labor and Worker Safety. Details can be found at: http://www.com.ohio.gov/laws/.
Are there fees?
Yes. Businesses are charged an administrative fee based on the size of the loan in addition to legal fees. There are no fees for the lending institution. A fee schedule can be found in the “Forms” section.
Who sets the rates and terms for the financing?
The lender. The lending institution sets the rates and terms of the loan according to its normal underwriting guidelines.
Does OAQDA require collateral?
No. That is a lender’s decision.
What is the term (life) of the loan?
The lender decides the life of the loan under its normal underwriting guidelines.
Do OAQDA benefits only apply to tax-exempt borrowing?
No. OAQDA benefits apply to taxable bonds as well.
Do all OAQDA projects require volume cap allocation?
Volume cap is required only if tax exempt financing for private activity is contemplated.
How does the volume cap process work?
OAQDA is required to file an application on behalf of the project with the Ohio Department of Development. It should be noted that very little volume cap money is currently available.
Can the financing include processes? Equipment? Buildings?
Yes. Please refer to the “Forms” section for a complete description of eligible costs.
Is there a loan size limit?
No. OAQDA has handled projects from $13,900 to $350 million. The only test is whether it makes economic sense for the business to proceed with the application process. Will the project save money by going through OAQDA when fees are included? If the answer is “yes,” then you should proceed with the application.
What is the cost to the lender?
There is no additional financial cost to the lender. Although the application process is simple, it does take additional time in comparison to a straight business loan and there will be additional documents to review. Ask to see a sample package.
What does the lender own at the end?
In the end, you will have a loan package that carries tax benefits.
Is this program only tailored for low-income businesses, targeted urban renewal areas or groups?
No. All Ohio businesses are eligible.
By applying for OAQDA financing, will the agency “turn in” my business to Ohio EPA or other regulatory authorities?
No. However, all required permits must be in place or in process.
Does the program include leases or just loans?
OAQDA is available for both loans and leases.
Is this a program that would normally go to the lender’s government subsidy department for loans that need help?
No. OAQDA does not guarantee the loan or subsidize the interest rate. Your normal lending relationship is still in place.
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