Small Business Program Launched In Cleveland Heights

CLEVELAND HEIGHTS, OH — Cleveland Heights is establishing a new small business finance program, thanks to a $150,000 grant awarded by Cuyahoga County. The program will help borrowers access U.S. Small Business Administration (SBA) loans. Cleveland Heights was one of only four cities countywide to receive funding for its program.

The city said in a statement the program will help attract small businesses, primarily by aiding them in meeting or reducing equity requirements to secure an SBA loan. The program will award grant to small businesses, and the grants will be structured as forgivable loans to help the business qualify for an SBA loan.

The typical deal for a project through the program would be 75 percent from an SBA loan via a bank or other lender, 15 percent in the form of a forgivable loan (forgiven over three years), and 10 percent owner equity.

While the county is providing $150,000 to the program, the city is also planning on providing an additional $50,000. (To stay up to date on local stories, subscribe to the Patch Cleveland Heights newsletter. As news breaks and the story develops, you will be the first to receive updates from Patch.)

“The City of Cleveland Heights has an existing pro-active outreach program to the small business community, and this program will be an additional tool in our toolbox to market to businesses as part of the City’s business retention, expansion, attraction, and creation program,” said Tim Boland, economic development director for Cleveland Heights. “I see this program as a significant part of the City’s business development efforts.”

Technical assistance will also be provided to individual businesses via the Small Business Development Center.

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