Lorain Development Corporation (LDC) was incorporated on September 4, 1984 as a 501c4 non-profit corporation. LDC’s goal is to promote and assist small and medium size businesses located in the City of Lorain. LDC’s primary mission is to administer the City’s loan programs for commercial businesses through its revolving loan programs. These revolving loan programs provide financial assistance to new and existing businesses. They are utilized to stimulate new development and expansion of existing businesses that encourages job creation and retention that assists in increasing the tax base for the City of Lorain. The loan funds are used in connection with funding from private financial institutions to leverage the City’s limited loan resources to encourage such growth and retention.
The revolving loan programs come from three primary sources. The Business Development Revolving Loan Fund originated from Community Development Block Grant Funds with the existing portfolio composed of approximately 40 borrowers totaling $3.1 million in accrual loans. The City has been awarded four grants matched by City funding from the Department of Commerce through its Economic Development Administration’s Title IX loan program. This portfolio is composed of approximately 35 loans totaling $4.1 million in loans. The final source of loans are derived from HUD in which the City has borrowed funds from HUD using their credit rating for lower rates and then used those funds to lend to larger projects in which the City is the primary lender. This portfolio totals over $5 million with a dozen borrowers.
The City created a new incentive program for new business known as the Job Creation Incentive Program that rebates a percentage of new payroll withholding income taxes to the business. The incentive can last for up to fifteen years and businesses with annual payrolls of at least $150,000 can qualify as long as employees earn 150% of federal minimum wage.
To confidentially discuss locating your business in Lorain or incentives to assist in opening your business, please contact:
Lorain Development Corporation
Douglas Rangel, Director
200 West Erie Avenue, 5th Floor
Lorain, OH 44052
O: (440) 204-2020
F: (440) 204-2080