What are the security or collateral requirements for a City Economic Develop Loan?

The business owner and/or majority stockholder(s) must provide a personal guaranty in the amount of the loan. Business hazard insurance is required in the amount of the loan, with the City of Cleveland named as a loss payee. Finally, a first lien position on the real estate and/or machinery or equiptment is required.

How is green and sustainable development encouraged by the Department of Economic Development?

The City's NRAP Program (Neighborhood Retail Assistance Program) offers an incentive for green initiatives. Depending on the loan amount, up to $3,000 can be forgiven upon proof of the completion of verifiable green sustainable initiatives.

Are there any low-interest loan programs available to fix up commercial properties?

The Economic Development Loan Program can provide up to 40% of the financing for a project with an interest rate of 4%. The Neighborhood Retail Assistance Program provides loans/grants of up to $40,000 at 3% to fix up retail properties. For details on all business loans and programs, go here.

My company has been approved for an Economic Development Loan from the City. Is additional paperwork required?

There are two forms that the City will send you for completion after the funds have been disbursed:

• Income Verification Forms- to be completed by new employees when they are hired
• Annual Job Creation Report- to be completed and submitted by the business

The verification forms are collected at hiring by the business and information from these forms is used on the Annual Job Creation Report. The business must send the originals to the Department of Economic Development ( 601 Lakeside Ave, Rm. 210, Cleveland, OH 44114).

These forms must be submitted by December 15th so the City has time to review them before the end of the year. When the business has reached the job creation figures in the loan agreement, a staff person from the Department of Economic Development will visit the business to complete a Final Job Creation Report.

In addition to wage determinations, are there other rquirements to be considered if my company receives City Economic Development Loan money for construction purposes?

The project facilities must be in compliance with the requirements of the Americans With Disabilities Act of 1990, as amended. The general contractor should be made aware of this early on in planning the design and construction. In addition, the project must comply with MBE/FBE/SBE regulations on construction that exceeds $10,000. Construction projects where City assistance exceeds $100,000 must hire 20% Cleveland residents for the project.

What is required in order to get an Economic Development Loan through the City?

First a lending source must determine the maximum amount they will loan on the project. Your business is required to provide a minimum of 10% equity.

The loan amount applied for cannot be higher than the “gap” between total project cost and the funds from the lending institution plus the 10% equity from the business. Federal regulations are specific: public financing cannot take the place of available private financing on a project.

What can City Economic Development Loan funds be used for?

Funds can be used to purchase land and construct new buildings; purchase existing buildings and conduct renovations; or to acquire/install machinery/equipment with a minimum 7 years economic life.

Will the City take a subordinated collateral position to a bank which is lending on my company's business development project?

Yes, providing there is adequate collateral.

Can City Economic Development Loan funds be used along with other government loan programs?

Yes, when other non-federally funded programs are used, such as State of Ohio loan programs. If there are similar job creation requirements the same jobs may be counted for each program.

Can my business use City Economic Development Loan funds for working capital or to buy inventory?

Yes, but on a limited basis and only with adequate collateral.

My company has received a development loan from the City which requires job creation as a condition of the loan. What if goals are not met when they should be?

The City's Department of Economic Development will help the business meet its goals. Economic circumstances allow for a time extension. However, the City reserves the right to call the note for lack of performance, so the business should forecast realistic job creation numbers.

What is the minimum loan that can be funded to a business out of the City's Economic Development Loan Program?

This program has a $35,000 minimum loan amount requirement. Since the City only funds a portion of an entire project, the smallest project financed would have a total cost of $87,500. Legal fees on smaller projects may cause the City's participation to be cost-prohibitive.

Someone is dumping garbage on my site. How can I get it cleaned up?

Please contact the Mayor's Clean Cleveland Initiative at 216.664.2510.

Can I give property to the City for industrial or commercial use?

Call 216.664.2204. The City will consider the acquisition of vacant industrial/commercial property in support of development projects or for future development. A list of previous owners, users, operations and recent environmental reports will be requested.

What assistance does the City of Cleveland offer for assessing and cleaning up contaminated properties?

The City can conduct assessments and offer financing for cleanup as part of a larger business development assistance package. Please call 216.664.2204 for details.

Is there a way I get a “clean bill of health” for my contaminated property?

Ohio EPA will issue a No Further Action Letter and a Covenant Not to Sue for environmentally contaminated properties through the Ohio Voluntary Action Program. For more information, visit the Ohio EPA's VAP Website

Can you recommend a company to clean my contaminated property?

The City does not recommend companies. However, any clean-up of a contaminated property should be conducted in accordance with a Remedial Action Plan authored by an environmental professional.

How do I know if a property is contaminated?

An environmental professional can determine if a property is contaminated by conducting Phase I and Phase II environmental assessments. These assessments should be performed to an ASTM Standard E1527-05 or the Ohio Voluntary Action Program Standard.

Does the City of Cleveland have a list “brownfields”?

The City does not keep a list of brownfields.

What is a “brownfield”?

Brownfields are properties where expansion and redevelopment may be complicated by the presence or potential presence of hazardous substances, pollution, or contamination.

What kind of on-the-job training is offered to employers through the local Workforce Development program?

Employment Connection, a local agency directed by City and County Workforce Development, offers On-the-Job Training Grants to all industries. These grants help area businesses become more competitive by assisting with the cost associated with training new employees.

What number do I call about purchasing vacant commercial city-owned property?

Contact the Economic Development Department at 216.664.2406.

My business does not have any employees, can I still apply for the Neighborhood Retail Assistance Program?

Yes, you can still apply. Jobs created and retained are taken into consideration by the City, so projects which create new jobs, while utilizing green/sustainable techniques have a distinct advantage.

Can Neighborhood Retail Assistance money be used for a new roof?

Roof projects are usually disqualified unless they are combined with other interior and exterior upgrades.

Can our nonprofit organization use the Neighborhood Retail Assistance Program?

Yes, non-profit organizations may apply for the program to benefit for profit businesses.

How do I qualify for a Neigborhood Retail Assistance Program grant?

This program can provide both a loan and grant. Grant funding depends on new job creation. Additional factors include the use of green and sustainable building techniques, since these features can lower costs and improve working environments, while providing a better return on investment.

What is the interest rate on Neighborhood Retail Assistance loans?

Currently, as of this posting, all NRAP loans are at a 3% interest rate.

Can the Neighborhood Retail Assistance Program be used to provide financial assistance for daycares?

No. Daycares, nightclubs, religious organizations, national chains, liquor-only establishments, dollar stores, funeral homes and check cashing stores are not eligible.

How is the Vacant Property Initiative loan forgiven?

Part of the VPI loan will be forgiven as long as the project is completed and jobs are created. When the borrower repays the non-forgivable portion of the loan (in one year or on the project completion date, whichever is sooner) the entire forgivable part of the loan is forgiven.

At the time the first lien or letter of credit is released, however, if the borrower does not honor the agreement within 5 years, the forgivable portion will be reinstated and due immediately. A second lien remains on the property through that time.

When do Vacant Property Initiative repayments begin?

Quarterly interest-only payments are made after the first disbursement and until all conditions for forgiveness are met and the loan is forgiven.

What is the interest rate and term for the Vacant Property Initiative?

The current interest rate is 6%. For the first year, the borrower pays only the interest, on a quarterly basis. At the end of that year, a portion of the loan is forgiven as long as loan conditions are met. The financing structure of this program is similar to a traditional construction loan.

My company was approved for a city economic development loan. When will the City send the money?

The City’s budgeted costs are compared to the project’s budgeted costs. This ratio is called the percentage of completion basis for the project. The percentage is then applied to the actual costs, which are documented by invoices and proof of payment (usually cancelled checks). The correlating percentage of the documented invoices are then disbursed to the borrower. Disbursements are made as a lump sum or in partial payments and take 3-6 weeks to process. Due to government regulations, no funds are released prior to the receipt of documentation. Projects which end up costing less than the projected budget will have a decrease in the loan amount.

Can I use Vacant Property Initiative (VPI) funding to expand my existing business?

The VPI can be used to expand a business to an adjacent building or property if it has been at least 40% vacant for the last 2 years or longer. Job creation is an expected outcome. Expansions for parking lots are eligible for the “Local Parking Needs Program” only.

What is the maximum amount of City funds that can be loaned to a business out of the economic development loan program?

The program can provide up to $200,000 or 40% of the total project cost (whichever is lower). Projects with substantial job creation may receive up to $500,000.

Why do I need to fill out a LEED project evaluation form for my Vacant Properties Initiative loan if I do not have to build to LEED standards?

Since many businesses are unfamiliar with LEED requirements, we ask that a form be completed for each project.

During this time, many will find they can meet the minimum criteria to be certified. Implementing LEED is a good way to save on operating costs, help our environment and attract good employees. Many people are more aware of LEED and are supportive of employers who complete these standards.

In order to get a City Economic Development Loan, does my company have to agree to hire more people?

The program calls for the creation of 1 new, full time, permanent job for every $35,000 loaned. That means if the loan is for $105,000, the business will be expected to create 3 new, full time, permanent jobs. Businesses are given a 3-year period to create the jobs.

Can the Vacant Properties Initiative be used for for-sale housing?

No, the initiative may not be used for the development or redevelopment of for-sale housing. However, rental housing is permitted as part of a mixed-use project.

How does my company apply for a Vacant Properties Initiative Loan?

Application forms and information are available here. These are accepted on a first come, first served basis.

Can I use Vacant Properties Initiative funds for demolition?

Yes- if approved by the Planning Commission and the structure is zoned commercial or industrial, is at least 20 years old and was 40% or more vacant for the last 2 years. New construction and job creation are the required outcomes of the demolition.

I would like to purchase a vacant building in my neighborhood. Can the Vacant Property Initiative help?

Along with financial considerations, it depends on the intended use of the property. The initiative requires a committed for-profit user and a first priority lien on the property and/or a standby letter of credit.

Can you explain the process for the workforce development agreement which is part of the economic development loan my company is getting from the City?

After you meet with a City loan officer, Employment Connection staff will meet with your Human Resources official to discuss the projected new jobs in your loan application.

At that time it will be decided which positions could be filled through Employment Connection posting, which is a free service that matches the unemployed with employers. The agreement requires that your HR person posts the jobs for 10 days only at Employment Connection offices, which will screen candidates for you.

You are not required to hire the persons who are sent to you, however we ask that a survey is completed to help us determine if adequate screening is being provided.

If my business receives a loan from the City, how will the company be billed?

Each business is mailed an invoice for the loan payment around the 15th of the month before the due date. Loans are considered late if they are received more than 10 days after the due date and will be assessed a late fee.

If my company receives a City Economic Development loan for construction, are there any wage requirements?

Since the source of the loan is federal funding, Davis Bacon Federal Prevailing Wages must be used during construction cost estimating as well as during actual construction.

Can my business use City loans to help make payments on property, machinery or equipment that has already been purchased?

No, refinancing of existing loans is not allowed.

How are the City's Economic Development loans funded?

Most loan funds are from the US Department of Commerce Economic Development Administration.

Can the City help me find qualified workers for my business?

Yes, call Employment Connection at 216.664.4673 or 216.898.1366.

How can I find property for my business?

A commercial broker or real estate professional can help you. A list of available properties can be found here.

I want to purchase contaminated commercially zoned property. Can you advise me on whether or not I should go forward with the transaction?

The City does not make recommendations for or against the purchase of any property, but does recommend that a prospective buyer should seek advice from an experienced environmental consultant and an attorney knowledgeable in environmental liability issues.

What are the Economic Development Department's hours of operation?

The department is open from 8 am to 5 pm, weekdays.

Does Cleveland have a Chamber of Commerce?

There is the Greater Cleveland Partnership and COSE, or the Council of Smaller Enterprises.

Are there any fee requirements for loan/grant assistance?

Application, processing and fees apply to each program. Details can be found in the loan/grant brochures here. Or call the City at 216.664.3611 and ask to speak with a Business Development Loan officer.

What is the process for making complaints or giving testimonials about the Economic Development Department?

Contact Donella Hill at 216.664.3644.

Does the City offer meetings to business owners to learn about Economic Development programs?

Yes, to arrange for an "ED Overview" meeting, call 216.664.2406. The ED Team makes presentations to individuals, businesses and groups about loan and grant programs.

Does the City of Cleveland offer small business owners lines of credit?

The Department of Economic Development has designed the Working Capital Loan Program to help companies whose lines of credit have been lost or not extended through banks. This funding is designed to bridge gaps in operating budgets and to help with the purchase of raw materials and equipment needed for pending orders.

Where is the Department of Economic Development located?

City Hall, Room 210.

Are there State/County loans that can supplement the City's Economic Development loans?

Yes, for complete information, a Business Development Officer can be reached at 216.664.2406 regarding funding available from the City and its counterparts at other government agencies.

How can I find out what commercial businesses are being built in my neighborhood?

Contact your neighborhood community development corporation (CDC). A list of Cleveland CDC's can be found here.

Where can I find a list of commercial properties are for sale in Cleveland?

An online list is posted here.

My company wants to apply for a City Economic Development Loan for its project. How is that done and how long does it take?

Your company's application should be submitted to the Department of Economic Development (601 Lakeside Ave., Cleveland, OH 44114) with a letter of support from the local councilperson. After staff review, the application is submitted to the Loan Review Committee which meets once a month. If approved by the committee, your business may begin the project immediately at its own risk, or may wait until funds are awarded.

May I use City loan funds to start my business?

Yes. Businesses must demonstrate adequate collateral, credit and capacity to repay the loan. The business must provide 10% equity and the owner or majority stockholder may be required to provide a personal guarantee for the loan amount.

Does the City of Cleveland have a list of available vacant properties for commercial and industrial development?

Yes, call 216.664.3627

Is there an application Fee for the Vacant Properties Initative?

A $150.00 nonrefundable fee is due with the application.

Is there an assistance limit with the Neighborhood Retail Assistance program?

Maximum assistance is $40,000, which can be a loan or a loan/grant combination. The amount and type of assistance is determined by: current jobs & payroll, new jobs and payroll, total project investment, and green/sustainable elements. Assistance is provided on a first come basis.

Can the City help me find qualified workers?

Yes. The City’s Employment Connection is a program that assists local businesses.

Can Neighborhood Retail Assistance Program funding be used on improvements to an industrial building?

This particular program is for retail businesses only, but there are other business loans and grants available here.

Who do I contact for more information about the Neighborhood Retail Assistance Program?

Details and contact information can be found here: NRAP Brochure

What types of grants and loans are available to help Cleveland businesses?

Information on grants and loans can be found here.

What are some local programs to assist new and small businesses?

The City's Department of Economic Development has numerous programs for small and new businesses, providing technical assistance and creative financing.

The Civic Innovation Lab provides mentoring and funding of up to $30,000 for ideas that can improve the Greater Cleveland economy.

The Cleveland SBA Office has loan and grant information, free online training and legal information.

SCORE is dedicated to entrepreneur education and the formation,growth and success of small businesses. It provides free business advice and counseling.

The City's Office of Equal Opportunity certifies small businesses to bid on City contracts and provides development and technical support for target businesses.

Does the city offer any assistance for new businesses?

The Department of Economic Development provides technical assistance, creative financing and educational opportunities that will ensure a vibrant economic future for the region. For more information visit Economic Developement's Website

Can the government help me bond an employee?

Federal Fidelity Bonds may provide business insurance to you for an employee not otherwise bondable. This incentive is provided at no cost to you, but must be applied for prior to the employee’s start date. For more information about this program, call 800-233-2258

Are there any hiring tax incentives available?

This tax credit can provide your company with up to $2,400.00 in Work Opportunity Tax Credits for each new hire when you hire a member of a “targeted” population. These populations include Empowerment Zone Youth, members of families that received Temporary Assistance for Needy Families (TANF), ex-offenders, veterans or youth who are members of families that received food stamps for a period before their hire date, disabled workers who are completing rehab services (approved by the state or by the US Department of Veteran Affairs), or a worker who received Supplemental Security Income Benefits for a month during the 60 days before hire.

Welfare to Work can provide you with up to $8,500.00 of combined tax savings per new hire over two years when you hire a long-term (18 consecutive months) TANF recipient.

Are there tax incentives that can help my business provide access for disabled patrons or employees?

If yours is a small business that pays or incurs expenses to provide access to persons with disabilities you may be eligible for a Disabled Access Credit. For more information on this credit, check the Internal Revenue Services website at www.irs.gov.

Can the City help me find a job?

Job placement assistance is available from the City’s Division of Workforce Development, which is known as Employment Connection. Call 216-664-4673 to make an appointment for an Orientation.

Can the City help pay for my job training?

You may be qualified for job training through Workforce Investment Act funds. You must first call Employment Connection at 216-664-4673 to make an appointment for Orientation.

I am 55 years old. Are there any Senior employment programs?

Yes, there are several Senior programs. Through the City’s Employment Connection you can meet with representatives from AARP, National Caucus and Center for the Black Aged, and the City’s Department of Aging. These individuals are experienced with assisting people 55 and older to find full and part-time positions. Call 216-664-4673 to set up an appointment for an orientation.

I was just released from prison and need help getting a job. Does the City provide this service?

Employment Connection has a unit called PROES or Providing Real Opportunities for Ex-offenders to Succeed. You can contact them at 216-664-4673.

Where can I find information on the Mayor's Initiatives?

That information can be found on the Initiatives page here.

Can my child, who is still in school, enroll in a youth employment training program?

The City's Division of Workforce Development, known as Employment Connection, works with the Cleveland Municipal School District, where guidance counselors refer students to available programs. Interested parents should ask the school guidance counselors about the WIA Youth Programs for information.

I am under 22 years of age and no longer going to school. I would like to come for orientation to learn about employment training. What documents do I need to bring with me?

You will need some type of photo identification to enter the building. You will also need the following:

• you social security card (if your social security number is on your state id, or driver's license you do not have to bring your actual card)
• your birth certificate
• either a birth certificate or social security card of all family members in your household, including your children
• your last three pay stubs or the last three pay stubs of the person currently supporting you
• your food stamp print-out (if applicable)

How old do you have to be in order to attend youth orientation?

19-21

If I want to attend orientation, but can’t find a babysitter, can I still come?

Yes. We don't encourage you to bring your children because sometimes they can become a distraction, but we allow you to bring them if you have no other choice.

How long is the orientation proce

Three days. You must attend orientation for all three days. If you miss one day or show up late, you will have to start the process over.

How long is the Youth Employment training?

It depends on the program you are choosing.

Will I get a job after I finish the youth employment training ?

There is job placement upon completion of the program.

Can I come back for additionalemployment training?

Yes, but only if it is continuing education within the same field of training you've received thru the Older Youth program.