The Missouri Development Finance Board has announced the new Small Communities Operating Capital Loan Relief Program for Missouri incorporated municipalities under 25,000 in population. This program will allow $5 million to be dispersed to communities dealing with the challenges associated with COVID-19.
“Missouri’s local governments have played a major role in providing aid to Missourians and assisting with economic recovery efforts despite major budget shortfalls,” Governor Mike Parson said. “This loan program will provide the support these organizations need to continue serving their communities during this critical time in our state.”
This program is part of the Governor’s Show Me Strong Recovery plan, and is designed to provide Missouri communities access to an interim working capital operating loan to address projected fund shortfalls due to COVID-19. The loans are being offered to assist cities in the maintenance of existing governmental services.
Loan proceeds from this program must be used to replace tax, fees, or other governmental revenues that have been lost due to COVID-19. Loan amounts range from a minimum of $50,000 to a $300,000 maximum with a 0% interest rate in the first year.
Applications for the Small Communities Operating Capital Loan Relief Program are due by August 31, 2020.
The Missouri Development Finance Board assists with infrastructure and economic development projects by providing financing for projects with a high probability of success that might not be feasible without the Board’s assistance.
For more information visit mdfb.org/programs/small-community.