Ohio House Passes Expansion of Linked Deposit Program for Defense Sector

State Representatives Mark Hiner (R-Howard) and Ty Mathews (R-Findlay) announced that the Ohio House of Representatives today passed House Bill 332, legislation that aims to bolster Ohio’s defense sector through expansion of the state’s linked deposit program.

Currently, this type of linked deposit program is primarily used for agriculture and allows applicants to receive reduced-rate loans in partnership with the State Treasurer’s office at no cost or risk to the state. House Bill 332 expands eligibility to allow Ohio-based businesses that hold or have held a defense contract or subcontract, and that have less than $50 million in gross receipts in the prior year, to qualify.

“As larger defense companies look to expand or relocate to Ohio, we need to ensure their small suppliers can grow alongside them,” said Rep. Hiner. “House Bill 332 builds on a proven program and helps our defense businesses access capital in a way that is responsible, effective, and risk-free for the state.”

“I’m proud of the Ohio House for passing HB 332,” said Rep. Mathews. “This bill strengthens Ohio’s defense and manufacturing base by giving small and mid-sized companies the tools they need to compete, innovate, and deliver for our national security. It’s smart policy that keeps jobs, investment, and capability right here in Ohio.”

The expansion strengthens Ohio’s defense industrial base by improving access to affordable capital for small and mid-sized suppliers that play a critical role in national security. By leveraging an existing, successful program, the bill supports job creation, supply chain growth, and long-term economic development without creating new financial exposure for taxpayers.

House Bill 332 now advances to the Ohio Senate for consideration.