Ohio Treasurer Robert Sprague visited Bellefontaine Wednesday afternoon, Oct. 1, to meet with local business owners and also the Logan County Commissioners to promote two different programs — one that will offer Ohio entrepreneurs reduced interest rates on small business loans, and the second, a new partnership that will make it easier for Logan County employees to utilize STABLE accounts via payroll direct deposit.
The state treasurer said the brand new Buckeye Business Advantage program, which launches later this month, enables businesses with 150 employees or less to apply to borrow up to $1 million through their local lending institution, and then be eligible to reduce the loan’s interest rate by 3 percent for two years.
This flexible capital could be utilized for a wide variety of purposes — from expanding facilities for a new segment of business to growing a product line or purchasing new equipment, Treasurer Sprague said.
“We know that growth starts at home, and you need flexible capital to start or expand your small business. Whether your company is just starting out or you’re ready to take operations to the next level, Buckeye Business Advantage can help you achieve success with your small business.”
The program is all about providing an edge to Ohio businesses and bringing manufacturing back the state. Currently, 17 percent of the state’s GDP is from manufacturing.
Treasurer Sprague said it was a priority for him to inform the Logan County community, with its strong manufacturing presence, about this new initiative.
“Our announcement of this program coincides with National Manufacturing Month because we stand ready to help your small business grow and bring production back to our state. By leveraging the state’s balance sheet, we can help small businesses access capital to reinvigorate or expand their operations in Ohio.”
How the Buckeye Business Advantage works:
• The small business owner selects and works directly with a participating financial institution for a business loan. Then, the loan officer at the participating financial institution submits an online Buckeye Business Advantage application on behalf of the small business owner.
• The Ohio Treasurer’s office reviews the Buckeye Business Advantage application, and if all eligibility criteria are met, the application is approved.
• Once the Buckeye Business Advantage application is approved, and on an agreed date, the Ohio Treasurer’s office deposits funds with the financial institution at a below-market interest rate.
• The financial institution reduces the small business borrower’s loan interest rate in conjunction with the offsetting deposit by the Ohio Treasurer’s office.
Also during his time in Logan County, the state treasurer met with the county commissioners and in conjunction with National Disability Employment Awareness Month, the local and state officials announced a new partnership enables allows eligible employees to opt-in to have a portion of their paycheck deposited directly into a STABLE account for themselves or a qualifying family member.
“The ability to save and invest without jeopardizing critical benefits is life-changing for many individuals living with disabilities,” said Treasurer Sprague. “I commend Logan County for recognizing this and for supporting their employees and families through the STABLE Account Payroll Direct Deposit program. This initiative helps pave the way for greater independence, financial stability, and peace of mind.”
A STABLE account is a specialized savings and investment account for people living with disabilities that allows them to save and invest money without losing eligibility for certain means tested benefits, such as Medicaid and Supplemental Security Income (SSI).
Treasurer Sprague has made it a priority to partner with employers to provide the STABLE Account Payroll Direct Deposit benefit to Ohioans. In 2019, Treasurer Sprague announced a collaboration with the Ohio Department of Administrative Services to provide eligible State of Ohio employees with the opportunity to direct a portion of their paychecks into STABLE accounts.
In addition, several other public and private sector employers have also partnered with the treasurer’s office to offer the benefit to employees.
With the announcement, Logan County is now the 12th Ohio county to provide the payroll direct deposit option to employees.
Observed in October of each year, National Disability Employment Awareness Month commemorates the many contributions and achievements of American workers living with disabilities.
“On behalf of Logan County, we are pleased to partner with Treasurer Sprague and STABLE Account which will greatly assist members of our disability community to have the ability to save without losing benefits such as Medicaid and Supplemental Security Income,” said Logan County Auditor Jack Reser and the Logan County Commissioners in a joint statement.
Since taking office in January 2019, Treasurer Sprague has more than tripled participation in the STABLE Account program, and today, there are nearly 50,000 active accounts, making it the largest STABLE Account program in the country, officials noted.
Through the program, accountholders can save up to $19,000 each year without jeopardizing federal assistance, and if the accountholder is employed, they can save an additional $15,060 per year.
The STABLE Account program was launched in 2016 following passage of the federal Achieving a Better Life Experience (ABLE) Act. Prior to STABLE accounts, people living with disabilities could only save a total of $2,000 before losing their benefits.
Earnings on a STABLE account grow tax-free and are not subject to federal income tax, so long as they are spent on Qualified Disability Expenses. Qualified Disability Expenses include education, housing, transportation, healthcare, assistive technology, basic living expenses and other items.
For more information about STABLE accounts and to sign up, visit www.stableaccount.com.
Small business owners interested in learning more about the Buckeye Business Advantage program should visit www.ohiotreasurer.gov/buckeyebusinessadvantage for additional information.
