Business Loans

Business Loan Director: Annie McMillan

Ø Business must be a community development project and located in a rural area

Ø At least 51% of the business must be owned by a United States Citizen

Ø Applicants must be credit worthy, but unable to obtain financing through private lending institutions. (Must be documented by two denial letters from two separate institutions.)

Ø Applicants must sign a personal guarantee

Ø Funds can be used to finance projects ranging from $5,000 to $150,000

Ø Funds can be used for start-up or expansion, business & industrial acquisitions (when it will keep the business from closing & loss of employment), feasibility studies, easements, rights-of-way, inventory, equipment, interest, leasehold improvements, fixed assets, land & building, machinery, pollution control and abatement, reasonable fees for licensed professional services, transportation, and working capital

Ø Applicants must have at least 5% tangible equity injection

Ø Adequate collateral must be pledged to secure the loan

Ø Can not finance debt consolidation, property held primarily for sale or investment, media, through which editorial opinions may be expressed, hotels, motels, tourist homes, convention centers, recreation or amusement centers

Ø Can not finance businesses engaged in lending, directly or indirectly, or loans to owners or stockholders of the business

Ø The interest rate is fixed at 7%

Ø The terms of repayment relate to the amount of the loan and the type of collateral offered, but generally range from five years to ten years

Ø Business must be a socially and economically disadvantaged concern

Ø Business must be for profit and perform a commercially useful function

Ø Ownership and daily management must be at least 60% minority or female

Ø At least 50% of the ownership must be a Mississippi resident

Ø Applicants must be credit worthy and possess the ability to repay

Ø Applicants must not be in default of the State/Federal Government

Ø Applicants must sign a personal guarantee

Ø Funds must be used to finance projects up to $250,000

Ø Funds can be used for start-up or expansion, inventory, equipment, fixed assets, professional fees, rental payments associated with the project, and working capital

Ø Applicants must have at least 5% tangible equity injection

Ø Adequate collateral must be pledged to secure the loan

Ø Can not finance charitable or non-profit businesses

Ø Can not finance media, through which editorial opinions may be expressed

Ø Can not finance businesses engaged in lending, directly or indirectly

Ø Can not finance debt consolidation, property held primarily for sale or investment, funds for speculation in any kind of property, and loans to owners or stockholders of the business

Ø The terms of repayment range from five years to fifteen years depending on the use of funds and collateral