PROGRAMS :: Cuyahoga County
New Product Loan Fund
OverviewEntrepreneurs and companies under $50 million in revenue are eligible to apply for the Cuyahoga County New Product Development and Entrepreneurship Loan Fund. In the last three years, the fund provided $3.25 million in bulk funds for new product development. The program was, developed by the Cuyahoga County Department of Development and is administered by MAGNET. The current application round is now closed. Another round is expected to be held in early 2009. Please check back at that time for further details. The process is competitive. Loan applications are reviewed and approved by a committee consisting of local business leaders, venture capitalists, product designers, entrepreneurs and representatives from Cuyahoga County. Recipients of the loan must commit to manufacture any product developed through the program in Cuyahoga County for a period of at least seven (7) years. The loan is a ten year loan and will bear interest at the rate of 3.5%. The loan funds are awarded to recipients with no payments or interest due for the first three years (no interest is payable nor does it accrue for the first three years.) The loan is repayable in installments of principal and interest over the seven remaining years of the loan. Small companies and entrepreneurs will use this loan to fund their product development process which may include market research, patent services, industrial design, engineering and prototyping efforts. Funds are disbursed on a reimbursement basis after a work plan and budget have been approved by MAGNET. The specific amounts that can be loaned depend on the type of work that must be done. For example, very early stage ideas that need significant market research would apply for Phase 1 and would be eligible for up to $15,000; ideas that are further along and need more intensive market research and preliminary design and engineering would apply for Phase 2 and be eligible for up to $40,000; ideas that are much further along and need detailed design and prototype development would apply for Phase 3 and be eligible for up to $60,000. See Product Development Phases for more information. A company making sufficient progress in its current phase could apply for funding in the next phase, however that application process is still competitive and funding is not guaranteed. Theoretically, a company could borrow up to $115,000 to develop its product from idea stage to a prototype ready for manufacture. Application Documents
The following document is needed only if you're selected as a potential recipient. It is posted here for information only. It is NOT REQUIRED to be completed until an applicant has been notified that he or she has been selected to receive a loan. Please note that the Loan Agreement must be accepted "as is." Modifications to this agreement will not be permitted.
If you have trouble using a computer, the Cleveland Public Library can assist you with "how to's" for your loan application. You can reach them here: www.cpl.org and www.knowitnow.org.
At each round, applications should be emailed to Barbara Paul. Electronic transmittal is the preferred method of delivery, however applications can also be mailed or hand delivered to: Barbara Paul For further information, contact: |
