Ohio Creates $100M Tech Infrastructure Fund, Approves $50M for Capital Fund

With the passage of HB 675, the FY 03-04 Capitol Budget Bill, the Ohio Legislature approved funding for a $100 million Innovation Ohio Revolving Loan Fund and a second $50 million installment for the Wright Brothers Capital Fund. Both measures are key components of Ohio's $1.6 billion 10-year Third Frontier Project — the state's largest-ever commitment to expanding high tech research capabilities and promoting start-up companies to build high wage jobs.

The revolving loan program is intended to benefit Ohio companies in such sectors as advanced materials, biosciences and information technology, financing up to 75 percent of a total project. Ranging from $250,000 to $5 million, the loans will fund fixed assets including machinery and equipment, building or leasehold improvements, computers and software. Companies doing business outside of Ohio that agree to locate within the state also will be eligible to receive assistance.

The Wright Brothers Capital Fund received its first $50 million allocation from the Ohio Legislature in July 2002. Under the program, competitive grants will be awarded to assist in the creation of globally competitive research centers focusing on new product development and commercialization. Ohio's universities, private research institutions and private sector businesses are expected to work collaboratively to expand the state's research competency.

In addition to the above measures, HB 675 created the Third Frontier Commission with its own 3-member advisory board and abolished the 25-member Biomedical Research and Technology Commission. Beginning July 1, the Third Frontier Commission will assume the functions, funding and employees of the former commission, which coordinates and administers Ohio's S&T programs.

More information on the Third Frontier Project and its initiatives is available at: http://www.ohio3rdfrontier.org/3rdfrontier/