Webinar Recording: Economic Development Financing Resources for Small Business
Overview of GROW Missouri Loan Program and "IDEA" Seed/Venture Funds
Grow Missouri Loan Program PowerPoint Presentation
Facilitate the funding of an expansion project that would be unlikely to occur without the Grow Missouri Loan in order to create or retain full-time jobs for targeted businesses.
- Principal and interest payments may be deferred for up to 3 years (4 years for minority business enterprises (MBE) and woman business enterprises (WBE) to aid in obtaining approval for the other project financing. After the initial deferral period, payments may be interest-only for up to 3 additional years. The maximum term of the loan is 8 years.
- The collateral may be subordinated to the primary lender.
- An approved applicant will have 120 days after DED’s approval of the loan application to secure commitments of the other financing for the expansion project; therefore, there is no need to have the entire project financing secured when applying.
- Interest rates are 2% fixed rate per annum. (MBE/WBE is 0% rate.)
- Generally, for-profit “primary” companies (that mostly sell/compete outside the local market area) are eligible.
- Applicants must demonstrate a reasonable ability to create at least 1 new or retained job for every $75,000 of Grow Missouri Loan funding within 5 years of approval. Such new or retained jobs must have average wages that are at least 80% of the county average wage, or 70% within Enhanced Enterprise Zones or MBE/WBEs.
- The applicant must offer to pay at least 50% health insurance for all Missouri employees.
- The Grow Missouri funds and the other “leveraging sources of funds” (private loans and equity) to be used for the project may not be used for refinancing existing debt or replacing existing equity. There is no prohibition on the use of “non-leveraging sources” (direct public sector funding) for refinancing.
- None of the “leveraging sources of funds” can have been spent prior to the DED’s approval of an application.ible.
- The expansion project does not involve relocating the project facility from another community in Missouri, or if so, the existing community has endorsed the relocation to DED. Also, this project does not, or will not, cause the reduction of employment at a related facility located in Missouri.
- The qualified company (including affiliates) must have less than 500 full-time employees (full-time equivalent basis) at all locations, inside or outside Missouri, at the time the application is submitted.
- The Grow Missouri Loan cannot exceed: (a) 10% of the total “leveraging sources of funds” (private loans and equity); (b) $3 million per qualified company; or (c) $75,000 per new and/or retained job, whichever of these would result in the lowest amount.
- Applications for the available funding of $10 million will be received at any time until the funding is exhausted.
A qualified company approved for a Grow Missouri Loan must provide annual reports to DED. DED will provide additional information to the qualified company regarding the necessary reporting after the loan is approved.
Missouri Department of Economic Development
Division of Business and Community Services
Business and Community Finance Team
301 West High Street, Room 770
P.O. Box 118
Phone: (573) 751-4539
Fax: (573) 522-4322