Collateral Enhancement Program

The Collateral Enhancement Program provides lending institutions with cash collateral deposits to use as additional collateral for loans made to eligible for-profit small businesses.

Who can apply? Small businesses that are creditworthy, but having difficulty getting the financing needed to expand and create jobs.

Criteria: Borrower must be small business whose principal place of business is in Ohio with revenues equal to or less than $10 million and with fewer than 250 employees.

Borrower can be either a new or existing business that is creating or retaining jobs. 

Ineligible businesses include firms involved in retail, mining, agriculture, real estate investment, speculative activities, lending or leasing activities, pyramid sales, gambling activities, charitable institutions, religious institutions, consumer and marketing coops, and other nonprofits.

Borrower pays a fee equal to 2% of the cash collateral deposit and pays all other Lender application and closing costs. Maximum amount of a cash collateral deposit is 30% of the proposed loan amount for real estate, equipment, and working capital loans up to the maximum cash collateral deposit limits. The maximum cash collateral deposit limits are $500,000 for fixed-asset loans and $250,000 for working capital loans.

Review and Approval: Borrowers must complete a lending institution’s standard loan application. The Lender submits a CEP application to the ODOD and related loan documents. The ODOD will review the application and documentation to determine eligibility and completeness and will notify the Lender of the application approval. 

Contact: Ohio Department of Development at