Provides a loan to certain types of for-profit companies that need funds for start-up or expansion
and have exhausted other sources.
42 USC § 5301 et seq., 24 C.F.R. Part 570; and Missouri's "Consolidated Plan" submitted to the U.S. Department of Housing and Urban Development.
Projects can only be in a "non-entitlement" area - a city under 50,000 in population or a county under 200,000 in population.
Cities and counties must apply on behalf of beneficiary companies. For-profit manufacturing, processing and assembly companies that will have wages above the county average and provide medical benefits are prioritized.
PROGRAM BENEFITS/ELIGIBLE USES
- The purchase of new machinery and equipment, working capital, building acquisition and/or construction land acquisitions are eligible
- Refinancing, pay out of stockholders, buyouts or lines of credit are not eligible.
- The business must have exhausted other funding sources.
- Only the least amount needed to complete the project may be provided.
- Lesser of $750,000 per project; 40% of the total project cost; or $25,000 per new job.
- Interest Rate: Determined by DED.
- Term: Three to ten years.
- Collateral: Depends on the predictability of the cash flow. The loan may be in a subordinate collateral position to the primary lender at the sole discretion of DED.
An application must be submitted by the sponser on behalf of the business. Applications are reviewed on a case-by-case basis, subject to fund availability.
- Borrower must provide quarterly financial reports and a fiscal year end report.
- Employment Status Statement Forms.
SPECIAL PROGRAM REQUIREMENTS
- LMI Employees: At least 51% of the new jobs created must be taken by persons considered "low to moderate income" (LMI)
- Prevailing Wage Requirement: If loan proceeds are used for the financing of building construction or the installation of machinery, prevailing wages must be paid to the employees of the cnotractors.
Missouri Department of Economic Development
Division of Business and Community Services
Finance Management Team
301 West High Street, Room 770
P.O. Box 118
Jefferson City, MO 65102
Phone: 573-751-4539 - Fax: 573-522-4322