Frequently Asked Questions

It's not that the programs we have are difficult to understand.  It's that small business owners are busy running their business. And, our development partners and lenders are at work doing what they do best, working to help their small business customers. We get lots of questions.

Here are some of the more common questions...

Is applying for a loan from government financing sources difficult. Is there a lot of paperwork?

  • Applying for a loan from BizCap is very much the same process as applying for financing from a lender like a bank or a credit union. Our loan decision is based upon the cash flow and credit of the business and the character of the ownership. A secondary consideration is collateral as our BizCap loans are very typically subordinate to the lien of our lending partner.  We need to understand who you are, what you would like to invest in with our funding, and how you can pay this loan back.

What is the basic process to access a BizCap small business loan?

  • At the same time that your Lender is considering a loan request for their portion of your project, you would submit a BizCap loan application to your BizCap Business Loan Officer who then prepares the request for review and approval by our Board of Trustees. Upon approval of your BizCap loan by our Trustees, final approval is then pursued from the loan program (the US Small Business Administration, for example) at which time BizCap issues a commitment to you for its loan. Your Lender will then fund its permanent loan (typically 50% of the project) and an interim loan in the amount of the BizCap loan (typically 40% of the project) and your project can begin. At the completion of your project, the BizCap loan is funded paying off your Lender's interim financing.

How is the small business loan rate determined? Can you lock in interest rates prior to closing?

  • This varies. Interest rates on our SBA 504 loan program are set by the market and are pegged off of comparable term US Treasury Notes. Interest rates for the Ohio Regional 166 loan program are set by BizCap in line with program regulations (currently not to be lower than 2% nor exceed 8%). Interest rates on the CDBG and Child Day Care loan programs are pegged off of the Prime Rate. Rates for the Ohio Regional 166, CDBG and Child Day Care programs are locked in at the approval of the loan.
  • For more information about our current interest rates, please click here.

Please feel free to visit FAQs - for the Business Owner or FAQs - for our Lender Partners if your question is not answered here.