Local Economic Development (LED) Loan Program
Can you apply?
This grant is for water and sewer infrastructure projects benefiting industries making significant investments in Ohio and creating new jobs.
Applicants must be cities, counties, water districts, or similar entities in Ohio with authority to develop water/sewer infrastructure. The local entity must have enacted rate legislation to ensure adequate revenues for loan repayment.
Eligible projects include planning, engineering, and construction of water/sewer systems. Land and easement acquisition, plus legal and inspection fees are allowable uses.
Projects must generate sufficient economic activity to meet the program's job creation and investment thresholds.
⚖️ Cost sharing / matching required — applicants must contribute their own funds.
This grant is for water and sewer infrastructure projects benefiting industries making significant investments in Ohio and creating new jobs.
Applicants must be cities, counties, water districts, or similar entities in Ohio with authority to develop water/sewer infrastructure. The local entity must have enacted rate legislation to ensure adequate revenues for loan repayment.
Eligible projects include planning, engineering, and construction of water/sewer systems. Land and easement acquisition, plus legal and inspection fees are allowable uses.
Projects must generate sufficient economic activity to meet the program's job creation and investment thresholds.
Program description
The purpose of this program is to provide financial assistance for water and sewer projects for industries making a significant investment in Ohio and creating new jobs. Applicants must have enacted local rate legislation to ensure revenues are adequate to make loan repayments. Funding may be used to support: Planning, engineering, and construction Land and easement acquisition Legal and inspection fees Please view NOFA or go to agency website for additional information regarding application dates and project dates. An unspecified amount of funding is available to support loans of up to $7.5 million through this program. The loan agreement must be executed within six months of approval from the funding agency’s board. The loan term and interest rate will vary by loan, as detailed on pages 3-4 of the NOFA file. Generally, the contract will be no less than 5 years and no more than 30 years for a construction project, and no more than 5 years for a planning project. Loan repayment begins 12 months after the project is in service on January 1 or July 1. Payments are due January 1 and July 1 of each year during the repayment period. Additional information regarding repayment/prepayment is detailed on page 4 of the NOFA file.
Who can apply
Eligible applicants
Details
This grant is for water and sewer infrastructure projects benefiting industries making significant investments in Ohio and creating new jobs.
Applicants must be cities, counties, water districts, or similar entities in Ohio with authority to develop water/sewer infrastructure. The local entity must have enacted rate legislation to ensure adequate revenues for loan repayment.
Eligible projects include planning, engineering, and construction of water/sewer systems. Land and easement acquisition, plus legal and inspection fees are allowable uses.
Projects must generate sufficient economic activity to meet the program's job creation and investment thresholds.
How to apply
Application links
Key dates & requirements
Required documents
- Loan application form
- Evidence of enacted local rate legislation
- Engineering and feasibility study
- Detailed project budget and cost estimates
- Economic impact documentation (investment, job creation projections)
- Proof of industrial commitment or letter of intent
- Board resolutions authorizing the application
Program contact
- 👤 Kim Killian
- 📧 kkillian@owda.org
FAQ
Who can apply for this loan program?
Municipal governments, water districts, and similar public entities in Ohio. Your jurisdiction must have passed rate legislation ensuring adequate revenues for loan repayment.
What projects are eligible?
Water and sewer infrastructure serving industries making major investments in Ohio. Eligible costs include planning, engineering, construction, land acquisition, and professional fees.
What is the loan amount and term?
Loans up to $7.5 million are available. Construction projects typically have terms of 5–30 years; planning projects have terms up to 5 years.
When must repayment begin?
Repayment starts 12 months after the project is operational. Payments are due January 1 and July 1 each year.
What is the application timeline?
Check the agency website and NOFA for application opening dates and project-specific deadlines. The loan agreement must be executed within six months of board approval.
💡 Tips for applicants
- Secure local rate legislation before applying. Reviewers will verify your community can repay the loan through adequate user fees.
- Document the economic development impact clearly. Show the industrial investment size and new jobs the project will create.
- Plan for the 6-month execution window after board approval. Delays in closing can affect project timelines.
- Prepare detailed engineering and cost estimates upfront. The program expects solid project planning, not preliminary feasibility studies.
- Coordinate with your economic development office. Demonstrating strong community support and job commitment strengthens competitiveness.
⚠️ Common mistakes
Applications fail when local rate legislation is missing or inadequate. Reviewers reject projects lacking clear evidence of revenue sustainability.
Overstating economic impact or job creation harms credibility. Use conservative, documented estimates of industry investment and employment.
Poorly scoped projects or preliminary cost estimates signal lack of readiness. Bring detailed engineering and realistic budgets to the application.
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