The Department of Economic Development (DED) will make a deferred loan to a not-for-profit development corporation to assist in the location of new companies to Missouri communities and the creation of new full-time jobs primarily for low to moderate income (LMI) persons.
No new authorizations may be made for this program. Existing projects with previous authorizations may complete their projects and may still achieve the program benefits subject to the program rules and any terms and conditions of their original award.
Projects can only be in a “non-entitlement” area -- a city under 50,000 in population or a county under 200,000 in population.
State CDBG funds are only available to cities or counties in non-entitlement areas - a city under 50,000 in population or a county under 200,000 in population.
Program Benefits/Eligible Uses
The acquisition and rehabilitation of an existing building, the construction of a new building, and land acquisition or on-site infrastructure related to the building. Refinancing, marketing costs and administrative costs are not eligible.
- The borrower must have exhausted all other funding sources.
- The loan is limited to the lesser of $1,000,000 per project or $25,000 per new full-time year-round job.
- A Loan Agreement is executed between the not-for-profit development corporation, DED, and the city/county sponsor.
- Interest Rate: 1% APR
- Term: The loan cannot exceed 30 months from the day of the first draw of loan proceeds.
- Collateral: An irrevocable letter of credit from an accredited financial institution for principal and interest, expiring no earlier than 30 days from the maturity date of the loan.
Prior to submitting an application, the city or county must complete a needs assessment and hold a properly noticed public hearing.
Employment Status Statement Forms
Special Reporting Requirements
- LMI Employees
- At least 51% of the new jobs to be created must be filled 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 contractors.