Two dozen members of the Tipp City Area Chamber of Commerce welcomed John Jones, Regional Community Affairs Director with the Ohio Treasurer of State. John came to discuss the way that the Ohio Treasury works, as well as some of the various programs that small businesses should take advantage of.
John is a Dayton local (went to Alter) and works to promote the various programmes provided by his office.
John share how the Treasury acts as “Ohio’s Bank” that receives all of the tax and federal funding, and then manages each departmental account that spends that money.
The State of Ohio Treasury insures and invests in state and fed bonds, helping to build a warchest for the State. (which has been admittedly difficult to do during this period of slow economic growth)
The Ohio Treasury manages two outreach programs
- The continuing financial education program for fiscal officers of municipalities.
- Public financial education directives within the Ohio schools.
John also described what a Link-Deposit model of finance is through the use of the ever-popular “widget-factory” description.
The GrowNow programme is directed towards small businesses.
- Essentially, the business in question comes to an agreement with the bank on the business financing at a particular rate: (say 7% for example)
- Then the bank and owner approach the State of Ohio with the agreed-to financing plan
- The State of Ohio Treasury examines the loan and then makes a CD deposit in the bank in the amount of the loan.
- In exchange for the state collateral put forth, the bank reduces the interest rate to the business by 2% for the first two years. (effectively providing the business with a 5% interest rate)
The State Treasury also manages the Ag Now project that provides low-interest funding to Ohio farmers, Save Now that adds to the savings rate that your bank provides to you, and Eco-Link, a program thathelps to reduce the costs of eco-friendly implementations
I asked John why Eco-Now falls under the pervue of the State Treasurer Office.
He stated that there has been little to no movement in the Green jobs and enviro-friendly plans for the State, so the Treasury took on some of the popularization of the effort by offering financial incentives for environmental programs and hiring the so-called “green jobs”.
Finally there was some discussion on Ohio’s popular 3rd frontier program. Strickland will continue to fund and support this Bob Taft programme. There is $3-$4 recovered for every $1 spent with the plan.
