When a small business financing need becomes complex, when additional expertise can help move a project forward, or when economic development professionals need advanced training, Cuyahoga County (Ohio) has a network of partners it can call upon. Grow America has become an important part of that network.
Vaughn Johnson, Deputy Director for Economic Development and lead for the Cuyahoga County Office of Small Business, oversees the County’s economic development lending activities and works with municipalities, businesses, lenders, and economic development partners throughout Cuyahoga County.
Serving a county with 59 municipalities requires both internal expertise and strong external partnerships. Grow America has worked with the County for years by providing small business financing, technical assistance, and professional development that expands the County’s capacity to serve businesses and communities.
Gap financing helps move projects forward
Cuyahoga County’s Department of Development supports business attraction, expansion, retention, and investment throughout the county. One of the tools available to support qualifying projects is gap financing.
Economic development projects frequently involve multiple sources of capital, including borrower equity, conventional financing, and public-sector financing. County financing can help fill an appropriate gap in the capital stack when a project demonstrates the financial strength, economic impact, and public benefit necessary to warrant County participation.
“Every day, we are working on projects at various stages and determining where County financing can appropriately help move viable projects forward,” Vaughn says.
When additional expertise is useful, the County can also draw upon organizations such as Grow America as technical resources and sounding boards. Their experience in small business and economic development finance can provide another perspective as businesses, municipalities, and financing partners evaluate potential transactions.
Hands-on technical assistance and a capital partnership
Cuyahoga County maintains a network of organizations that provide capital and technical assistance to small businesses.
Through a competitive qualification process, the County periodically selects partners to provide specialized services to businesses. Grow America has participated in that network and has provided technical assistance to the County since 2022.
The work is not limited to telephone calls or virtual meetings.
“Corey Leon, a Grow America senior field director, has come to Cuyahoga County and spent the afternoon with us visiting businesses and talking directly with owners about their financing and project needs,” Vaughn says. “That willingness to get into the community and understand the business is valuable.”
Grow America can also provide specialized financing expertise when circumstances warrant.
Vaughn recalls working with an established company seeking financing for an expansion. Representatives from the business, its advisers, lenders, the local chamber, the County, and Grow America participated in the discussion.
“Grow America was able to add another level of financing expertise and perspective to the conversation,” Vaughn says. “That is the benefit of having strong partners at the table. Different organizations bring different tools, experience, and perspectives to help determine the best path forward for the business.”
The partnership also includes direct small business lending through the Grow Cuyahoga Fund, which combines County investment with Grow America’s lending platform and the SBA 7(a) program.
The partnership extends to direct lending, too, through the Grow Cuyahoga Fund. The county’s initial contribution of $4.3 million, combined with the SBA guarantee, let Grow America leverage that investment 7x. Together, we’ve made more than $26.8 million in loans to date, reaching 56 businesses and creating 1,137 jobs.
Training that keeps pace with economic development
Cuyahoga County also places significant emphasis on developing the technical expertise of its economic development professionals.
One of the County’s strategic objectives is to serve as a resource to municipalities as they pursue economic development and investment opportunities. That requires staff who understand increasingly sophisticated financing structures and can work effectively with businesses, developers, lenders, municipalities, and other partners.
Many members of the Department of Development team have completed or are currently pursuing Grow America’s Economic Development Finance Professional (EDFP) Certification.
For Vaughn, the value extends beyond earning a credential.
“The economic development financing environment continues to evolve, and our team has to evolve with it,” he says. “Grow America continues to update its curriculum and its approach to professional education. That helps our staff strengthen the skills they need to evaluate projects and serve our communities.”
Responsiveness matters
Vaughn emphasizes that expertise alone is not enough when selecting external partners. Responsiveness, reliability, and follow-through also matter.
He points to an experience ahead of a Cuyahoga County Equity Commission meeting. When another scheduled presenter became unavailable on short notice, Vaughn contacted Grow America to determine whether someone could step in.
Despite significant travel logistics, Grow America arranged for a representative to participate.
“That demonstrated an exceptional level of responsiveness and commitment,” Vaughn says. “When you have a partner willing to make that kind of effort, it says something about how seriously they take the relationship and the communities they serve.”
Grow America representatives also regularly engage with the County to share information about new programs, financing products, and initiatives.
“That communication matters,” Vaughn says. “It helps ensure that our team understands the resources available so that, when we are working with a business, we can connect that business with the right resource at the right time.”
Supporting small businesses throughout Cuyahoga County
For Vaughn, Grow America’s greatest contribution is how its financing expertise fits within the County’s larger small business support ecosystem.
Through the Office of Small Business, Cuyahoga County works to serve small businesses throughout the county and connect owners with the capital, technical assistance, information, and other resources they need. That includes entrepreneurs who historically have encountered barriers to accessing conventional financing.
“Grow America has demonstrated a strong commitment to supporting small businesses in Cuyahoga County, including businesses and entrepreneurs who have historically had greater difficulty accessing traditional sources of capital,” Vaughn says.
The County’s approach, however, extends beyond any single organization.
“Our objective is to build a strong ecosystem of capable partners so that businesses have access to the resources they need,” Vaughn says. “Grow America has been a valuable part of that ecosystem, and the relationship has helped us expand the financing expertise, technical assistance, and resources available to businesses throughout Cuyahoga County.”
For Grow America, partnerships like this demonstrate how local governments, lenders, technical assistance providers, and economic development organizations can combine their respective strengths to help businesses grow and communities prosper.
If your community is interested in partnering with Grow America to expand access to capital, strengthen economic development capacity, or support local businesses, contact us to learn more.