GrowNOW Information for Bankers




The Ohio Treasury has a goal of investing $1 million every business day in Ohio's financial institutions through the GrowNOW program.

How does GrowNOW work?

When the Treasury invests that money at a financial institution in the form of a certificate of deposit, we agree to take a lower rate of return on our investment. In return, the financial institution agrees to pass along that 3 percent interest rate savings in the form of an interest rate reduction for the small business borrower. With this model, the state earns less-than-normal interest on its money, but it is also leveraging resources in local economies to boost job creation. For a process map on how GrowNOW works, click here.

Who qualifies?

Any business so long as:

  • They have fewer than 150 employees
  • The majority of employees are Ohio residents
  • They are organized for profit
  • Their offices and operating facilities are in Ohio

What are the terms of the loan?

  • For every job created or retained, small businesses are eligible for an interest rate reduction on $50,000 of their loan up to $400,000.
  • The term and size of the loan are decided by the lending institution. The Treasury provides a 3% reduction on the first two years of the loan on up to $400,000.
  • No lines of credit
  • Must be a fixed rate loan: Non-changing rate for the period of the deposit
  • The loan must be in the name of the business (not in a the name of a holding company)

What about CD pricing?

  • The rate the Treasury charges the financial institution for the CD is based on the two-year Treasury note and an average of the 2-year public funds jumbo rate from Ohio financial institutions.
    Find out what rate the Treasury is recieving for CDs here.
  • If the average is 4.25%, then the financial institution pays 1.25% back to the Treasury.

How does GrowNOW help financial institutions?

  • It increases the amount the financial institution has available to loan out to other businesses.
  • It counts toward the financial institution's Community Reinvestment Act (CRA) dollars.
  • It brings a deposit the financial institution wouldn't already have.
  • If the borrower owes the financial institution less, then there's a better chance of getting paid back.
  • It serves as a great marketing tool to attract new clients.
  • It is easy and cost efficient.
     

For lenders at public depositories, eligible lending institutions that have a partnership with the Treasury, GrowNOW interest rate reduction program is another tool for your small business client toolbox. Use GrowNOW along side of other tools such as:
 

What can GrowNOW finance?

GrowNOW can help your clients finance almost anything, as long as it's linked to creating or retaining jobs in the state. Here are some examples:

  • Refinance debt
  • Capital purchases