What can a land and building loan be used for?
This type of loan is ideal for businesses in need of expansion. CCDC can help you get the funding needed to:

• Buy an existing structure
• Add on to or renovate your current office or warehouse
• Build a new building
• Invest in equipment or machinery

Money loaned for these purposes can also be used for parking lots and minor landscaping.

What types of land and building loans are available?
CCDC professionals can help determine which type of land and building loan makes the most sense for your situation:

• SBA 504 enables healthy, growing companies to purchase land, buildings, machinery and equipment, or fund new construction up to $5 million; up to $5.5 million for manufacturing businesses.
• State of Ohio 166 helps small, growing manufacturing businesses fund up to $500,000 for land purchase, buildings and equipment.

Columbus City Loans

• City of Columbus Business Development Fund (BDF) offers up to $199,999 for real estate or equipment funding.

How can the loan be structured?

• Land and building loans funded by the Small Business Administration (SBA 504) are typically 10- or 20-year fixed-rate loans structured in a 50-40-10 format. This means one of our bank partners funds 50% of the cost, CCDC funds 40%, and the business is responsible for 10%.
• Land and building loans funded by state agencies (Ohio 166) are typically seven or 15-year fixed-rate loans.
• In most cases, the funding structure for special-purpose buildings – such as car washes, gas stations or hotels – is 50-35-15. This means one of our bank partners funds 50% of the cost, CCDC funds 35%, and the business is responsible for 15%. The ratio also varies for start-up companies.

Are there any requirement or eligibility issues?

• CCDC is looking for healthy, growing Ohio businesses committed to creating jobs.
• Business owners should have an idea of how much financing they need, how it will be spent and how much they expect to invest in the project. For specifics, refer to Loan Checklist.

Where can I get more details?

• A CCDC representative is pleased to answer your questions.

Refer to the Loan Overview for more information about loan terms, interest rates, collateral and job creation requirements.

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