This program enables a business to borrow funds from their bank at an interest rate of 2% or 3% below the rate which the bank would normally charge. The bank is able to grant this reduced rate because the State of Ohio agrees to deposit a like amount with the bank, and the State agrees to accept 2% or 3% less interest than the bank would normally pay on such a certificate of deposit.
These loans can be for 2 years and can be renewed for an additional 2 years. In summary, the bank lends, say, $200,000 to the business, at an interest rate of 2% or 3% less than usual because the State of Ohio will deposit $200,000 in the bank at an interest rate of 2% or 3% less than usual.