Cleveland—July 29 , 2010— The Cuyahoga County New Product Development and Entrepreneurship Loan Fund, administered by MAGNET, the Manufacturing Advocacy & Growth Network, today announced the 12 local awardees, selected from 40 eligible applicants, to receive $470,000 from the latest round of funding from the program. View the list of recipients here.

For more information, contact Barbara Paul at (216) 432-5322. Thank you for your interest in the Cuyahoga County New Product Development Loan Program!

Overview

Entrepreneurs and companies under $50 million in revenue are eligible to apply for the Cuyahoga County New Product Development and Entrepreneurship Loan Fund.

Since the program's inception in 2005, the fund has provided almost $4.5 million in funds for new product development. The program was developed by the Cuyahoga County Department of Development and is administered by MAGNET.

The process is competitive. Loan applications are reviewed and approved by a committee consisting of local business leaders, venture capitalists, product designers, entrepreneurs and representatives from Cuyahoga County.

Recipients of the loan must commit to manufacture any product developed through the program in Cuyahoga County for a period of at least seven (7) years.

Accessmount founder Nelson Pitlor used his company's County Loan funds to create a new kind of recessed light fixture that can be removed and replaced without ladders. Pitlor's product won quick recognition in the building maintenance industry and is already being speced into hotels, schools and colleges around the country. Read the complete story. See the full list of previous County Loan recipients Go directly to the Application Documents Steve Nash, a Battalion Chief for the Solon Fire Department, had a great idea to improve firefighter safety: a hand-held lighted compass that could help firefighters find their way out of large, smoke-filled commercial buildings. With MAGNET's assistance, Nash obtained a County Loan that helped him turn his great idea into a reality. Find out how he did it.

The loan is a ten year loan and will bear interest at the rate of 3.5%. The loan funds are awarded to recipients with no payments or interest due for the first three years (no interest is payable nor does it accrue for the first three years.)  The loan is repayable in installments of principal and interest over the seven remaining years of the loan.

Small companies and entrepreneurs will use this loan to fund their product development process which may include market research, patent services, industrial design, engineering and prototyping efforts.  Funds are disbursed on a reimbursement basis after a work plan and budget have been approved by MAGNET.

The specific amounts that can be loaned depend on the type of work that must be done. For example, very early stage ideas that need significant market research would apply for Phase 1 and would be eligible for up to $15,000; ideas that are further along and need more intensive market research and preliminary design and engineering would apply for Phase 2 and be eligible for up to $40,000; ideas that are much further along and need detailed design and prototype development would apply for Phase 3 and be eligible for up to $60,000. See Product Development Phases for more information.

A company making sufficient progress in its current phase could apply for funding in the next phase, however that application process is still competitive and funding is not guaranteed. Theoretically, a company could borrow up to $115,000 to develop its product from idea stage to a prototype ready for manufacture.

Application Documents

• MS Word Application (Updated May 26, 2010)
• Frequently Asked Questions (Updated May 26, 2010)
• Tips on Completing the Application (Updated May 26, 2010)
• Judging Criteria

The following document is needed only if you're selected as a potential recipient. It is posted here for information only. It is NOT REQUIRED to be completed until an applicant has been notified that he or she has been selected to receive a loan.  Please note that the Loan Agreement must be accepted "as is."  Modifications to this agreement will not be permitted.

• Loan Agreement (Updated May 26, 2010)

If you have trouble using a computer, the Cleveland Public Library can assist you with "how to's" for your loan application. You can reach them here: www.cpl.org and www.knowitnow.org.

MAGNET would like to acknowledge the leadership and assistance of the Cuyahoga County Department of Development, including Paul Oyaski and Bob Flauto, as well as the support of the Cuyahoga County Commissioners.

It is preferred that interested applicants visit www.magnet.myreviewroom.com to sign up for an account and submit an application.

However, if necessary, completed applications can be e-mailed to Barbara Paul.

For further information, contact: Barbara Paul, 216-432-5322.