BUSINESS FINANCING · OH

Small Business Financing Guide for Montgomery County, Ohio

This guide helps solo contractors and small business owners in Montgomery County, Ohio understand their financing options, from local credit unions and CDFIs to SBA-backed loans. It highlights the lenders and programs that actually serve the Dayton area, including ITIN-friendly options. It also explains what documents you typically need and what warning signs to watch for when borrowing money.

§ 01 — What it is

What Is Small Business Financing?

Small business financing is money you borrow — or receive — to start, run, or grow a business. It is not a single product. It can be a term loan (a lump sum you repay over time), a line of credit (money you draw on as needed), a microloan (a small loan, often under $50,000, from a nonprofit or community lender), or a grant (money you do not repay). Some financing is backed by the U.S. Small Business Administration (SBA), which means the federal government guarantees a portion of the loan — this lowers the risk for the lender and can make it easier for you to qualify. Financing can come from banks, credit unions, nonprofit community lenders (called CDFIs), or online platforms. In Montgomery County, the local intermediary layer — the CDFIs, credit unions, and regional banks that know the Dayton market — is often the best starting point for small business owners, especially those without long credit histories or traditional documentation.

§ 02 — Who qualifies

Who Qualifies? Understanding the Local Economy of Montgomery County

Montgomery County is home to Dayton, a mid-sized city with a diverse economy that includes healthcare (Kettering Health, Premier Health), defense and aerospace (Wright-Patterson Air Force Base), manufacturing, logistics, and a growing creative and tech sector. This means lenders in the region are accustomed to working with: • Sole proprietors and independent contractors in trades (HVAC, electrical, plumbing, construction) • Small retail, food service, and personal care businesses • Minority-owned and immigrant-owned businesses, including those using an ITIN instead of a Social Security Number • Startups and early-stage businesses that may not yet have two full years of tax returns General qualification factors lenders look at include: time in business, annual revenue, personal and business credit scores, ability to repay, and collateral. However, community lenders and CDFIs in the Dayton area often use a more flexible approach — considering your full story, not just a credit score. If you have been in business less than a year, a microloan or a CDFI loan may be a better fit than a traditional bank loan.

§ 03 — What you need

Documents You Will Typically Need

Being prepared with paperwork speeds up your application and builds trust with lenders. While requirements vary by lender and loan type, most business financing applications in Montgomery County will ask for some combination of the following: • Government-issued photo ID (driver's license, passport, or consular ID) • Individual Taxpayer Identification Number (ITIN) or Social Security Number (SSN) • Business license or proof of registration with the Ohio Secretary of State • Last 1–3 years of personal and/or business tax returns (if available) • Recent bank statements (typically 3–6 months of business checking statements) • Profit and loss statement and/or balance sheet • Business plan or written description of how you will use the funds • Lease agreement or proof of business address • Accounts receivable or contracts in hand (if applying for a working capital loan) If you are an immigrant business owner using an ITIN, you are not automatically disqualified. Several lenders in the Dayton area are ITIN-friendly — see the next section. Bring what you have; a good community lender will help you identify what is missing and how to fill the gaps.

§ 04 — Where to start in Montgomery County

Local Lenders, CDFIs, and Resources That Serve Montgomery County

These are organizations that actually operate in or near Montgomery County and have a track record of serving small business owners in the Dayton area: **CDFIs and Nonprofit Lenders** • **Ohio Valley Community Development Corporation (Ohio CDC Association member organizations)** — Nonprofit CDFIs statewide often provide microloans and technical assistance to underserved business owners, including ITIN holders. • **Dayton Development Coalition** — Supports economic development in the region and can connect business owners with financing programs and incentives. • **Women's Fund of the Greater Dayton Area** — Focuses on women-owned businesses and economic self-sufficiency; can connect owners to local capital resources. • **MORPC / Ohio Statewide Development Corporation** — Administers SBA 504 loan programs that help businesses purchase commercial real estate or equipment with a lower down payment. **SBA District Office** • **SBA Columbus District Office** — Serves Montgomery County. Located at 401 N. Front St., Suite 200, Columbus, OH 43215. Phone: (614) 469-6860. The SBA does not lend directly but works with approved local lenders to back SBA 7(a) and 504 loans. Call or visit their website to find SBA-approved lenders near Dayton. **Local and Regional Banks and Credit Unions** • **Wright-Patt Credit Union (WPCU)** — One of the largest credit unions in Ohio, headquartered in Beavercreek (Montgomery County area). Known for flexible lending and community focus. Offers business checking and small business loans. • **Day Air Credit Union** — Dayton-based credit union serving the region with business banking services and competitive loan products. • **First Financial Bank** — Regional bank with branches in Dayton; offers SBA-backed loans and traditional business financing. • **Huntington National Bank (Lift Local Business Program)** — Has an active SBA lending desk and has historically offered programs targeting minority-owned and underserved small businesses in Ohio. • **KeyBank** — Regional presence in Dayton; participates in SBA lending and has community lending commitments. **ITIN-Friendly Lenders** • Some CDFIs and credit unions in the Dayton area will consider ITIN in place of an SSN for business loan applications. Ask specifically whether the lender accepts ITIN when you first make contact. Accion Serving the Midwest (part of the national Accion network) has historically served ITIN holders in Ohio with microloans and small business loans. **Technical Assistance and Free Guidance** • **SCORE Dayton Chapter** — Free mentoring from retired business professionals. Meets in person and virtually. Visit score.org/dayton. • **Dayton Small Business Development Center (SBDC)** — Housed at the University of Dayton Research Institute. Free one-on-one advising, business plan help, and loan readiness coaching. Phone: (937) 229-1726. • **Minority Business Assistance Center (MBAC) — Dayton Region** — Helps minority-owned businesses access financing, contracts, and technical support.

§ 05 — What to avoid

Ohio State-Specific Regulatory Notes

Ohio has several state-level programs and rules that affect small business borrowers in Montgomery County: • **Ohio 166 Direct Loan Program** — Administered by the Ohio Department of Development, this program offers fixed, below-market interest rate loans to businesses creating or retaining jobs in Ohio. Montgomery County businesses may qualify. • **Ohio Small Business Relief Grant (historical)** — Ohio has run targeted grant programs during periods of economic disruption. Check the Ohio Department of Development website (development.ohio.gov) for current offerings. • **Ohio Minority Business Direct Loan Program** — Provides low-interest loans to minority-owned businesses in Ohio for fixed assets and working capital. • **Ohio usury and lending laws** — Ohio law does cap interest rates on certain consumer loans, but commercial lending (business loans) is largely governed by contract. This means business loan rates are not always capped by state law, which is one reason it is important to compare offers carefully and read the APR (annual percentage rate), not just the monthly payment. • **Business registration** — Ohio businesses must register with the Ohio Secretary of State. This is inexpensive and straightforward. Many lenders require proof of registration. Visit ohiosos.gov. • **Montgomery County Economic Development** — The county has its own economic development office that periodically administers local loan and grant programs. Visit mcohio.org or call the Montgomery County Commissioners office to ask about current programs.

§ 06 — Ask a question

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