Minority Business Enterprise Division

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Minority Business Enterprise Division

• Office of Management and Technical Services
• Office of Minority Financial Incentives
• Ohio Procurement Technical Assistance Centers

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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

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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

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Minority Business Enterprise Division

• Encouraging Diversity, Growth and Equity (EDGE)
• As the name suggests, the State of Ohios 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.

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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

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Minority Business Enterprise Division

• State Certified MBE

• State Certified EDGE

• 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.

• 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.

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Minority Business Enterprise Division

• Business Development Assistance
• Professional Training and Advice
• Financial Assistance
• The Right Business Environment
• SUCCESS

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Minority Business Direct Loan Program
Minority Business Enterprise Division

• Must Be a STATE or COUNCIL CERTIFIED 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 ME
• Benefits shared risk, lower overall cost of
  borrowing

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Minority Business Bonding Program
Minority Business Enterprise Division

• 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

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Capital Access Program
Minority Business Enterprise Division

• 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

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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

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Contact Information
Minority Business Enterprise Division

• Sharon Smith [phone] or ssmith_at_odod.state.o
  h.us
• Natalie Burley [phone] or
  nburley_at_odod.state.oh.us
• www.odod.state.oh.us/dmba