“I have earned $442,991 USD in just six months by building a dropshipping business that people loved”.

Erin Rafferty

Up to 8 months off on annual plans

checked
Create dropshipping store in minutes
checked
Get 14 day trial, cancel anytime
00
:
00
Sign Up Now
Dropship with Spocket for FREE

Begin dropshipping with Spocket and say goodbye to inventory hassles. Sign up today and focus on growing your sales!

#1 Dropshipping App on
Shopify Trustpilot
Based on 15,000+ reviews
Dropship with Spocket
Table of Contents
HomeBlog
/
Small Business Grants Ohio

Small Business Grants Ohio

Satyam Sharma
Satyam Sharma
Created on
November 4, 2024
Last updated on
November 5, 2024
9
Written by:
Satyam Sharma
Verified by:

Small business grants in Ohio provide vital financial assistance to entrepreneurs and small business owners looking to start, grow, or sustain their businesses. Ohio is home to over 965,000 small businesses, which make up approximately 99.6% of all businesses in the state, contributing significantly to job creation and economic growth. Recognizing the importance of supporting this backbone of the economy, Ohio offers a variety of grants, funding programs, and financial resources. From state-sponsored initiatives to federal and local grants, these programs aim to bolster economic development, innovation, and community impact, helping small business owners thrive amidst competitive market conditions.

What Is a Small-Business Grant?

A small business grant is financial assistance government agencies, non-profit organizations, or private entities provide to support small businesses. Unlike loans, grants do not need to be repaid, making them an attractive funding source for business owners. These grants are typically awarded to help businesses start up, expand, or undertake specific projects, such as research and development, workforce training, or community initiatives. 

Each grant has its own eligibility criteria and application process, often aimed at fostering economic growth, innovation, and job creation in targeted sectors or demographics.

Business Classifications and Structures in Ohio

In Ohio, understanding business classifications and structures is essential for entrepreneurs as it impacts taxes, liability, and management flexibility. 

Here are the main business structures recognized in the state:

Sole Proprietorship

The simplest and most common form of business is where a single individual owns and operates the business. It requires minimal paperwork and is easy to set up. However, the owner is personally liable for all business debts and obligations.

Partnership

  • General Partnership (GP): Formed by two or more individuals who share profits, losses, and management responsibilities. Each partner has unlimited personal liability for the debts of the partnership.
  • Limited Partnership (LP): Includes general partners with full liability and limited partners whose liability is capped at their investment in the business.
  • Limited Liability Partnership (LLP): Offers limited liability protection to all partners, shielding their assets from the business's debts.

Limited Liability Company (LLC)

A popular structure that combines the liability protection of a corporation with the tax benefits and flexibility of a partnership. LLCs protect owners' assets from business debts while allowing profits to be taxed on a pass-through basis.

Corporation

  • C Corporation (C Corp): A separate legal entity from its owners, providing the highest level of liability protection. It allows for unlimited shareholders and can raise capital through stock sales. C Corps are subject to double taxation—on corporate profits and shareholder dividends.
  • S Corporation (S Corp): Similar to a C Corp but with pass-through taxation, allowing profits and losses to be reported on owners' tax returns. S Corps has restrictions on the number of shareholders and must meet IRS requirements.

Nonprofit Corporation

Formed for charitable, educational, religious, or public service purposes. Nonprofits can apply for tax-exempt status, meaning they are not required to pay federal or state income taxes on earnings related to their charitable activities.

Professional Corporation (PC)

  • A specialized corporate structure for licensed professionals such as doctors, lawyers, and accountants. PCs provide liability protection for shareholders from malpractice claims related to other owners.

Cooperatives

Businesses are owned and operated by a group of individuals for their mutual benefit. Members share profits and decision-making responsibilities, with the primary goal often centered on serving their collective interests rather than maximizing profit.

Each business structure in Ohio has distinct legal and tax implications. Entrepreneurs must consider factors such as personal liability, taxation, and management needs when choosing the right structure for their business.

Types of Funding Programs Available in Ohio

Ohio offers a variety of funding programs to support small businesses, fostering economic growth and innovation across the state. Key funding opportunities include:

State-Sponsored Grant Programs:

  • Ohio Grants Partnership: Provides a centralized resource for state-funded grants across various sectors.
  • Industry Sector Partnership Grant (ISP): Supports collaborations between businesses, education institutions, and community organizations to address workforce needs.

Federal Funding Initiatives:

State Small Business Credit Initiative (SSBCI): Offers capital and technical assistance to socially and economically disadvantaged individuals and very small businesses. Ohio initially received $52.4 million, with potential for up to $182 million upon meeting performance targets.

Local and Regional Grants:

JobsOhio Small Business Grant: Provides financial support for projects in designated communities or for businesses owned by eligible populations, focusing on real estate investments, equipment, and more.

Specialized Funding Programs:

GrowNOW: Offers up to a 3% interest rate reduction on new or existing small business loans up to $400,000 for two years, with the opportunity for renewal, aimed at businesses committed to creating or retaining jobs.

These programs are designed to cater to diverse business needs, from startups to established enterprises, ensuring that Ohio's small business community has access to essential financial resources.

How to Access Funding Programs in Ohio

Accessing funding programs in Ohio involves a structured approach to identify and secure financial resources for your business. Here's a step-by-step guide:

Identify Suitable Funding Programs:

Review Eligibility Criteria:

  • Each program has specific requirements regarding business size, industry, location, and purpose of funds.
  • Ensure your business aligns with these criteria before applying.

Prepare Necessary Documentation:

  • Gather essential documents, including your business plan, financial statements, tax returns, and any other required information.
  • Accurate and up-to-date documentation strengthens your application.

Submit Applications:

  • Follow the application guidelines provided by each program meticulously.
  • Be mindful of deadlines and ensure all required information is complete and accurate.

Seek Professional Assistance:

  • Consult with local Small Business Development Centers (SBDCs) or economic development organizations for guidance.
  • They can provide insights into the application process and help identify suitable funding opportunities.

By systematically following these steps, you can effectively navigate the funding landscape in Ohio and secure the financial support necessary for your business's growth and success.

State-Sponsored Grant Opportunities in Ohio

Ohio offers a variety of state-sponsored grant programs to support small businesses across different sectors. Here are some notable opportunities:

State Small Business Credit Initiative (SSBCI)

Administered by the Ohio Department of Development, the SSBCI provides funding to support socially and economically disadvantaged individuals, very small businesses, and early-stage, technology-based companies. The program includes initiatives like the Community Development Financial Institutions (CDFI) Loan Participation Program and the Ohio Collateral Enhancement Program.

Women's Business Enterprise Loan Program

This program offers loans to women-owned businesses to help them grow and expand their operations. In 2022, more than $9.34 million in loans were dispersed to over 100 minority- and women-owned businesses through this initiative.

JobsOhio Small Business Grant

Designed to provide additional financial support for qualified projects in designated communities and for businesses owned by eligible populations, this grant focuses on small to medium-sized companies. It supports projects that meet specific guidelines and are located in qualifying ZIP codes or owned by eligible populations.

Ohio Micro-Loan Program

Aimed at minority- and women-owned businesses, this program offers micro-loans to assist with business growth and expansion. In 2022, significant funds were allocated to support these businesses through the program.

Food and Beverage Establishment Grant

This program provides grants of $10,000, $20,000, or $30,000 to restaurants, bars, coffee shops, and other food and drinking businesses. The amount is determined by the business's loss of revenue in 2020.

These programs reflect Ohio's commitment to fostering a diverse and thriving small business environment. For the most current information and application details, visit the Ohio Grants Partnership and the Ohio Department of Development

Industry-Specific Assistance Programs in Ohio

Ohio offers a variety of industry-specific assistance programs designed to support businesses across different sectors. Here are some notable initiatives:

Food and Beverage Establishment Grant

This program provides grants of $10,000, $20,000, or $30,000 to restaurants, bars, coffee shops, and other food and drinking businesses. The grant amount is determined by the business's loss of revenue in 2020.

Industry Sector Partnership Grant

Aimed at fostering collaboration between businesses, education and training providers, and community leaders, this grant supports the development of workforce strategies tailored to specific industries and regions. Eligible partnerships must include multiple private-sector employers focused on common workforce-related goals and be led by the business community.

JobsOhio Workforce Grant

This grant provides funding for the improvement of worker skills and abilities in Ohio. Decisions are based on factors such as job creation, additional payroll, fixed-asset investment commitment, project return on investment, and project location. The program focuses on a company's training costs, including information technology, skilled trades, leadership skills, and technical training.

Ohio Manufacturing Extension Partnership (Ohio MEP)

Ohio MEP assists manufacturers in increasing sales, creating jobs, and generating cost savings through technological innovation, workforce training, and improved management practices. Services include bid preparation assistance, bid-matching services, military specifications, one-on-one training, product and procurement histories, and trade events where Ohio firms can meet government buyers.

APEX Accelerators

Formerly known as Procurement Technical Assistance Centers (PTAC), APEX Accelerators provide services such as bid preparation assistance, bid-matching services, military specifications, one-on-one training, product and procurement histories, and trade events where Ohio firms can meet government buyers. These services are provided at no cost to Ohio businesses.

These programs reflect Ohio's commitment to fostering a diverse and thriving business environment by addressing the unique needs of various industries. For more information and application details, visit the respective program websites.

Pandemic Relief Funds in Ohio

During the COVID-19 pandemic, Ohio implemented several relief programs to support individuals, businesses, and communities. Key initiatives included:

American Rescue Plan Act (ARPA) Funds

Ohio received over $5.4 billion in State Fiscal Recovery Funds through ARPA to aid economic recovery. Allocations included:

  • Unemployment Compensation Fund: Approximately $1.4 billion was directed to replenish the state's unemployment fund, ensuring continued support for unemployed residents.
  • Water and Sewer Infrastructure: Nearly $1.2 billion was allocated for local governments to improve access to clean drinking water and wastewater infrastructure.
  • Healthcare Workforce Support: Over $350 million was designated to cover workforce expenses for Medicaid providers under the Nursing Facility Workforce Relief Program.
  • Appalachia Community Grants: $500 million was invested to assist communities in Appalachian Ohio, focusing on downtown rehabilitation, tourism expansion, and workforce training for at-risk youth.

These investments aimed to address immediate needs and promote long-term economic resilience.

Small Business Relief Programs

To support small businesses affected by the pandemic, Ohio introduced several grant programs:

  • Small Business Relief Grant: Provided grants to small businesses that experienced revenue loss due to COVID-19.
  • Bar and Restaurant Assistance Fund: Offered financial assistance to bars and restaurants impacted by health orders.
  • Funds for Small Business Grant Programs: In July 2021, the state doubled the funds for small business grant programs to $310 million, enhancing support for local businesses.

Homeowner Assistance Fund

Ohio was awarded $280 million from the U.S. Department of Treasury's Homeowner Assistance Fund through the American Rescue Plan Act of 2021. This fund assisted eligible homeowners facing foreclosure or unable to pay their mortgage, utility bills, or other housing-related costs due to economic hardship caused by the pandemic.

Local Government Support

More than $420 million was earmarked for local governments in Ohio with populations under 50,000. This funding aimed to help smaller municipalities address pandemic-related challenges and support community services.

These initiatives reflect Ohio's comprehensive approach to mitigating the pandemic's impact and fostering recovery across various sectors.

How to Start a Small Business in Ohio?

Starting a small business in Ohio involves careful planning, compliance with state regulations, and strategic decisions to ensure long-term success. 

Here’s a step-by-step guide that includes various business ideas, starting with dropshipping:

1. Choose Your Business Model

  • Dropshipping: One of the most attractive and low-cost options to start a business in Ohio is drohippingps. This model allows you to sell products without holding inventory. When a customer places an order, the item is shipped directly from the supplier to the customer. Platforms like Spocket can help connect you with reliable dropshipping suppliers, ensuring you have access to high-quality products and streamlined fulfillment.
  • Other Options: Consider service-based businesses, consulting, retail, or eCommerce ventures depending on your expertise and market research.

2. Develop a Business Plan

  • Outline your business goals, target audience, product or service offerings, and revenue strategies.
  • Include financial projections, marketing plans, and an operational overview.

3. Register Your Business

  • Choose a business structure that fits your needs, such as Sole Proprietorship, LLC, or Corporation. An LLC is often preferred for small businesses due to its flexibility and liability protection.
  • Register your business name with the Ohio Secretary of State and ensure it’s unique within the state.

4. Obtain Necessary Licenses and Permits

  • Verify and obtain any state or local licenses and permits required for your specific industry. Visit Ohio’s Business Gateway for resources related to registration and licensing.

5. Secure Funding

  • Explore funding options such as small business loans, grants, and venture capital. Ohio offers state-sponsored grant programs like the Ohio Micro-Loan Program and other resources for financial support.
  • Utilize personal savings, investor funding, or crowdfunding as alternative financing methods.

6. Set Up Business Banking and Accounting

  • Open a business bank account to keep personal and business finances separate.
  • Implement an accounting system or hire an accountant to manage financial records and tax compliance.

7. Comply with Tax Regulations

  • Register for an Employer Identification Number (EIN) from the IRS for tax purposes.
  • Familiarize yourself with Ohio state and local taxes applicable to your business type.

8. Build an Online Presence

  • Develop a professional website and establish a social media presence to reach a wider audience.
  • Utilize SEO strategies to improve your website’s visibility in search engines.

9. Implement a Marketing Strategy

  • Use digital marketing, email campaigns, and social media to promote your business.
  • Leverage partnerships and collaborations to expand your customer base.

10. Launch and Monitor Your Business

  • Once your business is set up, launch with a soft opening or promotional event to attract initial customers.
  • Continuously monitor your business performance and adjust your strategies based on market trends and customer feedback.

Conclusion

Ohio offers a range of grants and funding programs designed to support small businesses, helping them start, grow, and thrive. From state-sponsored initiatives and local grants to specialized industry support, these programs provide financial assistance and resources tailored to diverse business needs. Understanding and leveraging these opportunities can help small business owners secure the funds necessary to expand operations, drive innovation, and contribute to the state’s economy. By staying informed and proactive, Ohio’s entrepreneurs can access valuable support to achieve long-term success.

FAQs on Small Business Grants in Ohio

What types of small business grants are available in Ohio?

Ohio offers various grants, including state-sponsored programs like the Ohio Grants Partnership, the Industry Sector Partnership Grant, and local initiatives such as the JobsOhio Small Business Grant. These programs support a wide range of needs from workforce development to community-focused projects.

Who is eligible for small business grants in Ohio?

Eligibility for small business grants in Ohio depends on the specific program. Common criteria include business size, industry type, location, and the purpose of the funding. Some grants may also target minority- and women-owned businesses or startups with innovative business models.

How can I apply for small business grants in Ohio?

Applications typically require a detailed business plan, financial statements, tax documents, and a clear outline of how the grant will be used. Business owners can find grant opportunities on websites such as Ohio Grants Partnership or through local economic development agencies.

Are there grants specifically for women-owned businesses in Ohio?

Yes, Ohio offers grants and loan programs specifically targeted at women-owned businesses, such as the Women's Business Enterprise Loan Program and micro-loan programs that cater to women entrepreneurs aiming to grow their businesses.

What is the State Small Business Credit Initiative (SSBCI) in Ohio?

The SSBCI is a federally funded program that provides capital and technical assistance to small businesses, with an emphasis on supporting socially and economically disadvantaged individuals. Ohio has allocated these funds to various programs aimed at promoting business growth and job creation.

Can new businesses apply for grants in Ohio?

Yes, many grant programs in Ohio are open to startups and new businesses, especially those in sectors that drive economic growth or innovation. Business owners should review specific eligibility criteria for each grant program to ensure they meet the requirements.

How long does it take to receive grant funding in Ohio?

The timeline for receiving grant funding varies based on the program and application process. It can take anywhere from a few weeks to several months after the application is submitted and approved.

Are there resources to help with the grant application process?

Yes, Ohio has Small Business Development Centers (SBDCs) and other local organizations that offer guidance and support throughout the grant application process, including workshops and one-on-one consultations.

Launch your dropshipping business now!

Start free trial

Start your dropshipping business today.

Start for FREE
14 day trial
Cancel anytime
Get Started for FREE

Start dropshipping

100M+ Product Catalog
Winning Products
AliExpress Dropshipping
AI Store Creation
Get Started — It’s FREE
BG decoration
Start dropshipping with Spocket
Today’s Profit
$3,245.00
Grow your buisness with Spocket
243%
5,112 orders