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Minority Business Enterprise Division

Minority Business Enterprise Division. Office of Management and Technical Services Office of Minority Financial Incentives Ohio Procurement Technical Assistance Centers. Minority Business Enterprise Division. Office of Management and Technical Services provides funding to the

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Minority Business Enterprise Division

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  1. Minority Business Enterprise Division Office of Management and Technical Services Office of Minority Financial Incentives Ohio Procurement Technical Assistance Centers

  2. Minority Business Enterprise Division Office of Management and Technical Services provides funding to the Minority Contractors and Business Assistance Program (MCBAP) Locations: Akron, Cincinnati, Cleveland, Columbus, Dayton, Portsmouth, Toledo and Youngstown • Technical assistance • Training • Access to Local Resources • No-cost Access to Plans, Specifications and Bid Documents • Access to Capital • Assistance with Business Plans and Financial Statements • Assistance with federal, state and local certifications

  3. Minority Business Enterprise Division State Certified Minority Business Enterprise (MBE) Eligible businesses are defined as being at least 51% or more owned and controlled by an individual belonging to one of the following ethnic groups: African American Asian American Hispanic Native American

  4. Minority Business Enterprise Division Encouraging Diversity, Growth and Equity (EDGE) As the name suggests, the State of Ohio’s EDGE Program provides an EDGE to small businesses by Encouraging Diversity, Growth and Equity in public contracting. EDGE is an assistance program for economically and socially disadvantaged business enterprises.

  5. Minority Business Enterprise Division State Certified Encouraging Diversity, Growth and Equity (EDGE) Firm Eligible businesses are defined as having at least one objective distinguishing feature such as: Socially disadvantaged criteria (Must meet at least one criterion): • Race • Ethnic Origin • Gender • Physical/Mental Disability • Long-term Residency in an Environment isolated from mainstream Ohio • Other Objective Relevant Reason(s) Eligible Businesses must also meet both of the following criteria: Economically disadvantaged owners must meet the following thresholds: • Personal net worth of each owner must not exceed $250,000 at program entry • Personal net worth of each owner must not exceed $750,000 during program participation

  6. Minority Business Enterprise Division State Certified MBE State Certified EDGE 5% goal for state agencies, boards and commissions, state colleges and universities in awarding contracts to certified EDGE businesses. EDGE goals apply to procurements of supplies and services, professional services, information technology services, construction and professional design services. • 15% of supplies and services from state agencies, colleges and universities are set aside to be purchased from state certified MBE firms according to state law.

  7. Minority Business Enterprise Division Business Development Assistance + Professional Training and Advice + Financial Assistance +The Right Business Environment = SUCCESS

  8. Minority Business Direct Loan Program Must Be a STATE or COUNCILCERTIFIED MBE FIXED ASSET Financing (Land, Building, Machinery & Equipment, Renovations) Minority Business Direct Loan 40%, Bank 50%, Equity 10% 3% fixed interest rate $45,000 up to $450,000 $35,000 for Every Job Created/Retained Maximum 15 year term for real estate and 10 years on M&E Benefits: shared risk, lower overall cost of borrowing Minority Business Enterprise Division

  9. Minority Business Bonding Program Must be a STATE CERTIFIED MBE and Denied Bonding by Two Surety Companies Bid, Performance and/or Payment Bonds $1,000,000 Maximum Bonding Line 2% Premium on Each Bond Issuance Job creation and/or retention Benefits: Increases contracting opportunities with local and state entities Minority Business Enterprise Division

  10. Capital Access Program Similar to a loan guarantee Must be a small business with less than $10 million in sales Obtain a business loan from a Capital Access Lender 3% to 6% Contribution Fee, 10% Contribution Fee from the State $250,000 Maximum for Lines of Credit $500,000 Maximum for Fixed Assets Contribution Fees provide additional security to the Lender Benefits: Encourages Lender to make loans they may otherwise not make without additional security on the loan Minority Business Enterprise Division

  11. Key Steps in Establishing a Program Minority Business Enterprise Division Identify your constituents needs Determine program structure and identify funding sources Identify supporters (and detractors) Secure buy-in from program benefactors Identify strong local or state legislative sponsors Obtain statistical and/or anecdotal data to support Establish program data collection process and procedures prior to roll-out Market continually Review and Reevaluate Periodically

  12. Contact Information Sharon Smith (614) 644-8019 or ssmith@odod.state.oh.us Natalie Burley (614) 644-7249 or nburley@odod.state.oh.us www.odod.state.oh.us/dmba Minority Business Enterprise Division

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