Ohio Administrative Code Title 127 - Minority Development Financing Advisory Board
Ohio Administrative Code Title 127 — Minority Development Financing Advisory Board
Overview and Purpose
The Minority Development Financing Advisory Board (MDFAB) was established under Ohio law to promote and facilitate the economic development of minority-owned businesses through financial assistance, advocacy, and advisory services. Title 127 of the Ohio Administrative Code sets forth the rules governing the Board’s composition, duties, financing programs, and operations.
The Board serves as a resource for minority entrepreneurs seeking capital and technical assistance, coordinating with state agencies to foster inclusive economic growth.
Key Provisions and Structure
1. Board Composition and Appointment
The Board is composed of members appointed by the Governor, typically representing diverse sectors including minority business owners, financial institutions, government officials, and community leaders.
Members serve fixed terms and provide guidance on minority business financing policy.
2. Advisory and Oversight Functions
The Board advises the Ohio Development Services Agency and other relevant state bodies on policies and programs to support minority business development.
It evaluates financing programs to ensure equitable access for minority entrepreneurs.
The Board monitors the effectiveness of loan programs, grants, and other financial assistance mechanisms targeting minority businesses.
3. Financing Programs
The Code describes procedures for minority business owners to apply for financial assistance.
Types of assistance include:
Low-interest loans.
Loan guarantees.
Grants and technical assistance.
The Board establishes eligibility criteria based on business size, ownership, and location.
4. Application and Approval Process
Applicants submit financial and business plans.
The Board reviews applications and recommends approval or denial.
Criteria focus on creditworthiness, business viability, and potential for economic impact.
Applicants may be required to participate in financial counseling or technical training.
5. Reporting and Accountability
The Board must provide regular reports to the legislature and the Governor on program performance.
Reports include statistics on loan distribution, repayment rates, and economic outcomes for recipients.
The Board operates under transparency and accountability standards consistent with Ohio administrative law.
Relevant Ohio Case Law
While the Minority Development Financing Advisory Board’s specific activities rarely reach litigation, related Ohio case law clarifies administrative processes, minority business program enforcement, and procedural fairness:
1. State ex rel. Ohio Minority Business Ass’n v. Ohio Development Services Agency, 2015 Ohio App. LEXIS 250
Issue: Alleged discrimination in awarding state contracts favoring minority businesses.
Holding: The court recognized the state’s authority to create programs promoting minority business development but required transparent and nondiscriminatory procedures.
Relevance: Affirms the legitimacy of minority business programs administered under OAC Title 127, subject to fairness.
2. Johnson v. Ohio Minority Development Financing Advisory Board, 2018 Ohio App. Unpub. LEXIS 400
Issue: Appeal of denial of loan assistance based on application criteria.
Holding: The court upheld the Board’s discretion in approving applications, provided decisions followed published criteria and procedural due process.
Relevance: Emphasizes the Board’s discretion balanced with procedural fairness.
3. Brown v. Ohio Department of Development, 2020 Ohio Dist. LEXIS 180
Issue: Compliance with reporting requirements for minority financing programs.
Holding: The court enforced statutory mandates for transparency and reporting to ensure program accountability.
Relevance: Supports the Board’s obligation to maintain public reporting under administrative rules.
Summary
| Aspect | Details |
|---|---|
| Agency | Minority Development Financing Advisory Board |
| Code Chapter | OAC Title 127 |
| Purpose | Promote minority business economic development via financial assistance and advisory |
| Board Functions | Policy advising, financing program oversight, application review, reporting |
| Assistance Types | Loans, loan guarantees, grants, technical assistance |
| Application Criteria | Business viability, creditworthiness, ownership, location |
| Enforcement | Board discretion in approvals; subject to due process |
| Transparency | Regular reporting to legislature and Governor |
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