Southern Mississippi Planning and Development District was approved in August, 1993 and October, 1995, for a new loan program, the Mississippi Small Business Loan Program sponsored by MDA. This program has made $2,600,000 available to small businesses in the 15 county region. The Small Business Assistance Loan Program will participate up to 50% of the total financing needed. The equity injection requirement is 10% of the total project cost and will subordinate to a senior lender.
Requirements:
The business must be a for-profit entity. The business must have fewer than 100 full-time employees. The business must have less than $2,000,000 in net worth, and less than $350,000 in after-tax profit for two of the last three years. At least 60% of the ownership must be by residents of the State of Mississippi for the last two years.
Criteria:
The borrower must inject a minimum of 10% of the total project cost as equity. MSBAP can finance up to 50% of the amount financed, with a maximum loan of $250,000. A bank or other lending institution must loan the remaining balance of the project. The total must be at least $25,000.
Eligible Area:
The business must be located within SMPDD's 15 county area.
Fees:
Applicant is responsible for a $100 non-refundable application fee, 1% origination fee, and attorney fees for loan closing including recording fees for deed, UCC-1, title insurance, etc. are extra.
Loan Terms:
Real estate, no more than 15 years; equipment, no more than 10 years; Working Capital, no more than five years; inventory, no more than three years. Term is dependent upon assets financed.
Eligible Project Costs:
Fixed assets, Working Capital, inventory, and start-up costs.
