F  A  C  T  S    &    F  I  G  U  R  E  S
Section 5.2

FINANCIAL RESOURCES
(Updated January 2006)
  

  
In addition to commercial lenders, several alternative funding sources are available in the Meramec Region. Here is a list of the most common sources:

Small Business Administration (SBA) 504 Loan Program
http://www.sba.gov
This loan program assists medium-sized new and expanding businesses with projects involving fixed assets, such as land, buildings and/or equipment. Total project may range from $125,000 to $1.8 million. The applicant must participate with a private lender. Typical loans require at least 10 percent investment by the applicant, 50 percent by the private lender and the remaining 40 percent (or a maximum of $750,000) by SBA. The SBA portion of the 504 loan will be at a fixed rate for a fixed term, up to 20 years depending on the use of proceeds. One job must be created or retained for every $35,000 provided by SBA. Loan applications are prepared by the MRPC staff.
Contact: Candace Connell, Meramec Regional Development Corp., 4 Industrial Drive, St. James, MO 65559 at 573-265-2993 or cconnell@meramecregion.org.

Meramec Regional Development Corporation Revolving Loan Fund
This is a local fund designed to provide loan money to small businesses in Crawford, Dent, Gasconade, Maries, Phelps, Pulaski and Washington counties in order to induce private lenders' participation in projects that will retain or create employment. The Revolving Loan Fund can provide up to 40 percent of the funding or a maximum of $160,000, with a private lender and the applicant supplying the remainder. One job must be created or retained for each $20,000 of RLF requested. Loan applications are prepared and serviced by the MRPC staff.
Contact: Candace Connell, Meramec Regional Development Corp., 4 Industrial Drive, St. James, MO 65559 at 573-265-2993 or cconnell@meramecregion.org.

Missouri Action Funds Loan
This is a state loan program designed to provide low-interest "gap" financing for industrial projects. Successful grant applications have been prepared by MRPC staff.
Contact: Connie Willman, Meramec Regional Development Corp., 4 Industrial Drive, St. James, MO 65559 at 573-265-2993 or cwillman@meramecregion.org.

Municipal Bonds for Industrial Development
Both general obligation and revenue bonds can be used for industrial development in Missouri. Ad valorem tax advantages may be gained by using bonds issued by municipalities. Municipal bonds are typically issued through local Industrial Development Authorities.

Rural Development Business and Industry Guaranteed Loan Program
http ://www.rurdev.usda.gov/rbs
This program guarantees loans by eligible local lenders to businesses that benefit rural areas through creation and maintenance of employment. Priority is given to applications for loans in rural communities of 25,000 or less population. Maximum guarantee is limited to $10 million.
Contact: USDA Rural Development at the following local offices: Mark Dethrow (Osage County), mark.dethrow@mo.usda.gov; Leroy Kunkel (Dent County), leroy.kunkel@mo.usda.gov; Ray E. Mowery (Crawford, Maries, Phelps & Pulaski counties), ray.mowery@mo.usda.gov; Sherry L. Hughes (Gasconade County), sherry.hughes@mo.usda.gov; and Donna R. Martin (Washington County), donna.martin@mo.usda.gov.

Rural Missouri Inc. Microloan Program
http ://www.rmiinc.org
This program provides loans up to $25,000 for start-ups, newly established and growing small business concerns. Loan funds can be used for working capital, inventory, supplies, furniture, fixtures, machinery and /or equipment. No capital injection is required. Ongoing technical assistance is provided to borrowers at no cost.
Contact: Rural Missouri Inc., 1-800-234-4971.

Associated Electric's Rural Development Link Deposit Program
http ://www.intercoelec.com
The program, offered by Associated Electric Cooperative, Inc., is designed to reduce the interest rate businesses pay on bank-approved loans. Electric cooperative effectively "buy down" rates on these loans by placing long-term deposit with the lender equal to the loan amount. As a result, companies can borrow up to $75,000 for five years at only 7 percent. The cap on interest saves your company thousands of dollars over the term of the loan. Eligible companies must be in the AECI service area and involved manufacturing, distribution, assembly and warehousing operations.
Contact: Dave Dunn, Intercounty Electric Cooperative, P. O. Box 209, Licking, Mo. 65542-0209, Phone: 573-674-2211 davidd@intercoelec.com.

Enterprise Zone Tax Credit Programs
Five areas in the Meramec Region have been designated as state enterprise zones. By locating or expanding in these zones, businesses can realize thousands of dollars in tax and training credits. Firms in an enterprise zone may be eligible for:

• An investment tax credit of 10 percent of the first $10,000 in investment, 5 percent of the next $90,000 and two percent of excess over $100,000.
• Up to a $400 tax credit for each new employee hired;
• Up to a $400 employee training credit for each new employee;
• Up to a $400 credit for employees who are residents of the zone;
• Up to $400 per year for employees who are "unemployable";
• Up to half of the Missouri taxable income earned by a business within a zone shall be exempt from state income taxation for up to 10 years;
• Improvements to real property would receive a minimum 50 percent local abatement of Ad Valorem (property) taxes for at least 10 years.

See Section 2.3 for a listing of enterprise zones in the Meramec Region.

Missouri Agricultural and Small Business Development Authority
http://www.mda.mo.gov/WhoWeAre/masbda.htm
Beginning Farmer Loan Program, Animal Waste Treatment System Loan Program, Single-Purpose Animal Facilities Loan Guarantee Program, Missouri Value-Added Grant Program: These programs provide a variety of loan, loan guarantees and grant programs for agribusiness pursuits.
Contact: Missouri Agriculture and Small Business Development Authority, P.O. Box 630,1616 Missouri Blvd., Jefferson City, Mo. 65102, (573)751-2129, masbda@mda.mo.gov.

Missouri First Linked Deposit
http://www.treasurer.missouri.gov/link/ld.asp
This program facilitates a lower interest rate on loans to approved businesses. Eligible businesses include new, existing or expanding firms that annually employ at least 10 full-time employees. Maximum deposit is $5 million per project. Contact: Missouri State Treasurer Sarah Steelman, P.O. Box 210, Jefferson City, MO 65102, 573-751-2372.

Source: Meramec Regional Planning Commission Survey, January 2006.


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