Ohio has long been a hub for manufacturing and industrial innovation. From automotive suppliers in Toledo to aerospace parts in Dayton and advanced materials in Cleveland, these businesses need capital to expand operations, invest in technology, and compete globally. This guide explores the best loan options for manufacturing and industrial companies in Ohio.
Manufacturing and industrial businesses often require large upfront investments for:
Purchasing new machinery and production equipment
Expanding or modernizing facilities
Hiring and training skilled workers
Upgrading supply chain and logistics operations
Developing clean-tech or energy-efficient systems
Financing bulk raw materials or inventory for contracts
Strategic financing helps manufacturers scale efficiently and improve profit margins through automation and capacity upgrades.
Ideal for working capital, equipment, facility expansion, and refinancing. Loan amounts can reach up to $5 million, with flexible terms and competitive interest rates.
Designed for real estate purchases, facility construction, and equipment acquisitions. These loans combine bank lending with support from Certified Development Companies, offering fixed rates and long repayment terms.
While smaller in size (up to $50,000), these are useful for manufacturers just starting out or making minor equipment or inventory purchases.
SBA loans require solid documentation but offer some of the best long-term funding solutions available to manufacturers.
The state of Ohio offers funding support through various economic development programs. These may include:
Fixed-asset financing for equipment and facility improvements
Job creation incentives for businesses hiring within Ohio
Low-interest loans to support advanced manufacturing technologies
Grants or loan guarantees for innovation and clean energy initiatives
Businesses operating in targeted development zones may also qualify for additional benefits.
Manufacturers often need to finance:
CNC machines
Robotics and automation systems
Packaging and bottling lines
Vehicles and forklifts
Industrial ovens or cooling systems
Equipment financing allows companies to spread payments over 3 to 7 years while preserving working capital. Leasing is also an option for seasonal production or rapid tech upgrades.
Community Development Financial Institutions (CDFIs) and regional loan funds provide access to capital for underserved businesses, including smaller manufacturing companies. Benefits include:
Flexible approval requirements
Loan amounts typically ranging from $10,000 to $500,000
Support for minority-owned, veteran-owned, and rural-based businesses
Additional technical support or consulting services
CDFIs are especially helpful for manufacturers that may not qualify for large traditional bank loans.
Larger manufacturers may qualify for Industrial Revenue Bonds (IRBs) through local development authorities. These are long-term, tax-exempt bonds used to fund:
Construction of manufacturing plants
Major facility renovations or expansions
Large-scale equipment installations
Ohio also offers tax incentives for manufacturers who create jobs or invest in certain high-tech or environmentally friendly improvements.
Define funding goal: equipment, expansion, staffing, or inventory
Identify suitable loan type: SBA, equipment finance, CDFI, or bond
Prepare financials and business plan
Get quotes for machinery or facility upgrades
Prequalify and compare offers from lenders
Submit complete application with supporting documents
Finalize funding and implement your growth plan
| Loan Type | Best For | Considerations |
|---|---|---|
| SBA 7(a) | Working capital, equipment, real estate | Requires strong financials and personal guarantees |
| SBA 504 | Real estate or large equipment | May require 10%+ down payment |
| State Manufacturing Loans | Equipment upgrades, clean tech, job growth | Often tied to job creation or state development goals |
| Equipment Financing | Specific machinery or vehicles | Equipment acts as collateral |
| CDFI Loans | Smaller or underserved manufacturers | Limited loan amounts; regional availability varies |
| Industrial Revenue Bonds | Major facility expansion | Suitable for mid-size to large manufacturers |
An auto parts supplier in Columbus secured:
A $500,000 SBA 504 loan to purchase a larger facility
A $250,000 equipment financing deal to install robotic assembly lines
A $100,000 state-backed job creation loan to hire 15 new employees
Within 18 months, the company increased output by 60% and landed two new supply contracts with major car manufacturers.
To strengthen your loan application:
Keep credit score above 650
Maintain two or more years of clean financial records
Prepare a clear plan showing how funds will boost output or efficiency
Include quotes from equipment vendors or contractors
Demonstrate ROI or job creation potential
Work with a local SBDC or manufacturing extension partnership to refine your proposal
Ohio’s manufacturing and industrial businesses are essential to the state’s economy. Whether you’re building out a new facility, upgrading equipment, or hiring more skilled workers, there are a wide range of funding options available. From SBA-backed loans and state incentive programs to equipment financing and revenue bonds, manufacturers can secure the capital they need to compete and grow.
Define your funding priorities—machinery, facility, staff, or capacity
Research and compare SBA, state, and equipment loan programs
Gather your business financials and vendor documentation
Connect with a lender or development agency
Apply and invest in scaling your manufacturing operation