By Marilyn Miller
Beacon Journal business writer
Published on Wednesday, Feb 13, 2008
George Ralich, 83, of Youngstown, has been in the trucking business since 1965. He sells Mack trucks in Akron.
Originally, he and his brother had the business in Youngstown, but split the operation, and Ralich opened his own dealership in Akron in 1976 — R&R Truck Sales at 1650 E. Waterloo Road. Now his family business is run by himself, two sons and daughter.
In 1983, the Akron company wanted to expand — and used a state program to do it.
The low-interest loan incentive program that started that same year still exists, and Ohio Treasurer Richard Cordray isspreading the word. He said he believes that small businesses generate the most jobs and that if small businesses are thriving, then the economy will follow suit.
The program formerly called the Small Business Linked Deposit Program has been revamped and renamed GrowNOW.
Years ago, Ralich applied for a loan and through his banker learned about the state program. ''It was a tremendous help to us.
We needed additional capital to grow. It helped us to expand into a second facility in Twinsburg,'' Ralich said. ''It had a better
interest rate than the bank was offering, 3 percent less, and it didn't take long to get the money. It was handled quickly and we paid it off quickly.''
He applied for a second loan through the program. ''And we may apply for a third loan. It's a win-win situation and a great help for small businesses. I urge people to take advantage of it,'' Ralich said.
Cordray met with the National Federation of Independent Business group Tuesday in Akron to kick off a statewide tour.
The federation, founded in 1943, tries to give small and independent businesses a voice in federal and state government decisions.
Roger Geiger, the vice president and Ohio executive director of NFIB, said there are 160,000 businesses in Ohio that employ 100 people or fewer, with 80 percent of them employing 25 or fewer. And there are 600,000 self-employed people in Ohio.
Summit County has 672 members of NFIB, each representing businesses with fewer than 10 employees.
GrowNOW seeks to give qualifying entrepreneurs an interest rate 3 percent lower than the prime rate on small business loans.
Cordray said the first step is to persuade a bank to make a loan. ''We are only a source of financing. We rely on banks to assess the loans,'' he said.
After a bank approves a loan, the small business can then apply for it from the Treasury Department.
Last year, the program helped 191 businesses.
Geiger said the loan incentive package is one of the few state programs that cater to small businesses. He said most of the economic packages focus on big businesses to either attract or keep large corporations in an area.
''We take hometown companies, those rooted in the community, looking to grow,'' Cordray said. ''Instead of just reaching for those out-of-state companies and around the globe, the state is reinvesting in the neglected companies that remain in the area . . . those smaller businesses like the second- and third-generation business that has some longevity to Ohio.
''We are investing in businesses that made an investment in Ohio.''
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