JobsOhio Provides $500 M in COVID 19 Business Recovery Funding

JobsOhio is the state of Ohio’s private sector economic development corporation.  JobsOhio announced a substantial state economic development response to COVID 19 as outlined below:

Personal Protective Equipment.  JobsOhio has spent $69 M for Personal Protective Equipment (PPE) for use by Ohio businesses as well as supported the expansion of the PPE production industry in the state and the overall PPE allocation by JobsOhio is $250 M.

JobsOhio Rapid Deployment Initiative.  JobsOhio has enhanced its incentive programs for existing JobsOhio client companies to allow for maximum flexibility and support during this unprecedented time with adjustments to help address unexpected pandemic-related business costs, improve access to funds and an immediate limited waiver of compliance anticipated to total a $100 M investment by JobsOhio.

Statewide Liquor Buy Back. JobsOhio executed an alcohol buy-back initiative allowing bars, restaurants, and F2 permit holders (non-profits) to return surplus product purchased in the last 30 days for a full refund upon return of their supply, this buy-back has a potential of providing restaurant and bar owners across Ohio up to $30 Million total savings, and nearly 800 buyback requests have been made to-date.

Workforce Retention Loan. JobsOhio is offering a program for existing JobsOhio client businesses only to provide forgivable, six-month interest-free loan to companies who would use the loan to retain their workforce, acting as a credit line for payroll that is targeted to medium size private companies with least $50,000/month in hourly payroll workers, after 6-months, if employees are still working, the loan is forgiven, and JobsOhio will invest up to a $100 Million;

Community Banks Partnership Pilot. JobsOhio is planning a program for small business in Ohio’s small communities in partnership with 2 Ohio community banks to support their existing loan portfolio with JobsOhio investing up to $50 Million in loan guarantees enabling partnering banks to extend $500 million more business lending across the state with almost all the businesses supported likely coming from outside of the current JobsOhio client portfolio;

JobsOhio Innovation Fund. JobsOhio has created the JobsOhio Innovation Fund – a new program to provide Ohio’s entrepreneurial businesses with resources to soften the near-term impact of COVID-19 at this critical time that will allocate up to $50 M total toward this fund, and partner with Ohio’s current network of venture investors to provide loans into highest priority innovative investor-backed companies during this time;

Port Authority Reserve Fund. JobsOhio is planning to invest up to $50 Million of reserve funds to backstop Ohio’s Port Authorities, and they anticipate this investment will result in over $250 Million of additional Port Authority investment activity across Ohio;

Air Service Restoration. JobsOhio is allocating up to $10 Million to support Ohio’s air service and airport infrastructure to uniquely position the state to jumpstart service in key business markets;

Loan Portfolio Interest and Payment Holiday. JobsOhio is offering a program for businesses with a current JobsOhio’s existing loan only that offers a payment deferment (no interest and no principal payments) for the next six months to fifty companies who are eligible, with over 9,500 employees around Ohio which will equate into a $4 M investment by JobsOhio; and

Program & Policy Adjustments. JobsOhio is offering a program for existing JobsOhio client businesses only that expands allowable expenses and near-term relaxed compliance audit allowing expenses such as work from home technology and equipment and services to implement guidance associated with COVID-19.

By comparison, California with its $1 B COVID 19 business loan fund, is the only state in the union devoting more resources to COVID 19 business recovery and considering the relative size of the two states, with the JobsOhio effort being substantially more impressive.