Mahoning Valley receives $1.6M grant for small businesses

YOUNGSTOWN — The U.S. Department of Commerce's Economic Development Administration is providing a $1.6 million grant to the Mahoning Valley Economic Development Corporation to establish a new Revolving Loan Fund in support of small businesses and entrepreneurs.

The EDA grant will be matched with $400,000 in local funds and is expected to help create 200 jobs, retain 55 jobs and generate $9 million in private investment.

"This federal investment to establish a new Revolving Loan Fund in support of small businesses and entrepreneurs comes at a critical time in our Valley and region," U.S. Rep. Tim Ryan of Howland said in a news release. "Mike Conway and the team at the Mahoning Valley Economic Development Corporation should be commended for their vision and persistence to capitalize a program to support the growth of minority and women-owned businesses in Mahoning and Trumbull counties."

"This fund will help diversify the economy in Mahoning and Trumbull counties by helping local businesses thrive," U.S. Sen. Rob Portman said. "Not only will this fund help create and train employment opportunities for the Mahoning Valley, but it also targets opportunity zones and new market tax credit investments — both of which I worked hard to get included and passed in tax reform."

The funding announced today will help catalyze private investment in a nearby Opportunity Zone. Opportunity Zones can spur economic development by giving tax incentives to investors in economically distressed communities nationwide. In June, EDA added Opportunity Zones as an Investment Priority, which increases the number of catalytic Opportunity Zone-related projects EDA can fund to fuel greater public investment in these areas.

"We appreciate the Trump administration's investment in the Mahoning Valley Economic Development Corporation," Gov. Mike DeWine said. "The new Revolving Loan Fund will provide an additional funding source for Ohio's minority and women-owned businesses and start-ups that are looking to grow. Continued investment in our small businesses will strengthen Ohio's economy."

This story was originally published December 4, 2019 at 7:56 AM with the headline "Mahoning Valley receives $1.6M grant for small businesses."