Development Finance Programs

Providing credit-worthy companies with access to financing at attractive interest rates is at the center of the Port Authority’s development financing programs.

Through its four different programs, the Port Authority has helped directly finance more than 230 projects with total capital investments of more than $1.4 billion.

Fixed Interest Rate Bond Program
Uses: Finance up to 90% of costs of fixed assets such as land, building, machinery or equipment for “activities that enhance, foster, aid, provide, or promote transportation, economic development, housing, recreation, education, governmental operations, culture, or research within the jurisdiction of the port authority.” (ORC 4582.01 (B)1)

Amount: $1,000,000 to $8,000,000

Type of Bonds: Tax Exempt bonds for qualified manufacturing projects, Non-profit 501(C) 3, and governmental operations; Taxable bonds for all other eligible projects.

Term: Based on life of assets being financed; from 7- to 20-years.

Interest Rate: Market rate, based on BBB+ Investment Grade rating of the Program. Interest rate is fixed for term of tax exempt or taxable bonds.

Jurisdiction: All of Ohio.

SBA 504 Loan Program
Uses: Finance up to 40% of costs of fixed assets such as land, building, machinery or equipment for manufacturing, distribution and commercial facilities.

Amount: Up to $1,500,000; up to $2,000,000 if project meets specific SBA public policy objectives; up to $4,000,000 for manufacturing projects. Loan amount based on creation or retention of one job for every $50,000 of regular/public loans and one job for every $100,000 of manufacturing loans.

Term: 10- or 20- years.

Interest Rate: Based on monthly sale of SBA debentures; Interest rate is fixed, at or slightly below market rate.

Eligibility: Any for-profit business with a net worth of not more than $7 million and net profit after-tax of not more than $2.5 million (on average for the last two years).

Structure: Typically 50% bank financing; 40% SBA (SBA takes a second collateral position), and 10% equity.

Jurisdiction: All 88 Counties in Ohio and Monroe County, Michigan.

Stand-Alone Bond Issues
Off Balance Sheet Lease Financing: Port Authority finances, constructs, acquires and owns facilities and leases to a qualified Company which has control of construction and operation of facility; assets and debt associated with project do not appear on the Company’s balance sheet. Lease payment is expensed by the Company, which typically has a Fair Market Value purchase or lease extension option at end of initial term. Port Authority ownership can exempt construction materials from state sales taxes. The Company generally must be investment grade credit quality, with minimum project size of $5 million and no upper size limit.

Operating Lease Financing: Provides for off balance sheet financing in which the Company has a fixed price purchase option at end of lease term; may qualify for sales tax exemption on building materials used in project. The Company owns the facility for federal tax purposes and takes depreciation.

Conduit: Loan agreement or capital lease financing in which the borrower makes payments sufficient to pay debt service on Port Authority’s revenue bonds. Unless borrower is investment grade credit, typically backed 100% by bank letter of credit; short-term floating interest rates are used in most cases if bank letter of credit is used. Bonds also can be based on the strength of a full payout lease or loan agreement with a rated Company which may not require additional credit enhancement.

Jurisdiction: All of Ohio

Ohio 166 Regional Loan Program
Uses: Finance up to 40% of costs of fixed assets such as land, building, machinery or equipment for manufacturing, manufacturing-related, distribution, and research & development businesses.

Amount: Up to $350,000 based on jobs created/retained, usually $35,000 per job.

Term: Based on life of assets being financed; from 5- to 15-years.

Interest Rate: Fixed rate set by Ohio Department of Development: currently 3.5%.

Jurisdiction: Lucas, Wood, Fulton, Henry, Ottawa, Sandusky, Williams, Defiance, Seneca, and Erie Counties.

For more information about development financing programs call, write, or E-mail:

Bond Programs:
Paul Toth
Vice President, Technical and Financing Services
E-Mail: ptoth@toledoportauthority.org

SBA 504 & Ohio 166:
Lisa L. Wagner
Director of Financing Programs
E-mail: lwagner@toledoportauthority.org

Laurie M. Cantrell
Loan Program Manager
E-mail: lcantrell@toledoportauthority.org

Toledo-Lucas County Port Authority
One Maritime Plaza
Toledo, OH 43604-1866
Phone: 419-243-8251
Fax: 419-243-1835