The Mississippi Small Business Assistance Revolving Loan Program
Financing Requirements
The program can provide up to 50% of the total project costs with a maximum loan amount of $250,000.00 to any one borrower.
The Mississippi Small Business Assistance Loan Program requires a personal guarantee from all persons with 20% ownership (guarantee may be required from persons with less than 20% ownership on some projects).
Documentation will be required to show that the project will create and/or retain full-time jobs.
Qualifications of Loan Recipients
A qualified small business is defined as any for-profit commercial enterprise which meets at least one (1) of the following:
- Must employ less than 100 full-time employees
- Must have less than $2,000,000.00 in net worth
- Must have made less than $350,000.00 net after tax profit in two (2) of the last three (3) years
Eligible Categories of Business Financing
Funding may be used for the startup or expansion of businesses; at least 60% of the owners must have been residents of the State of Mississippi for a minimum of two (2) years.
Eligible Project Costs
Purchase and/or renovations of buildings, purchase of land, purchase of machinery and equipment, working capital.
Maximum Loan Terms
- Inventory - 3 years
- Land & Buildings - 15 years
- Machinery & Equipment - 10 years
- Working Capital - 5 years
Interest Rate
The interest rate may not be less than 5% per annum or more than 4% above the Federal Reserve Discount Rate on the date the loan is closed.
Fees
The GTPDD will charge an origination fee of 1% of the loan amount provided by the Mississippi Small Business Assistance Revolving Loan Program.
Non-Eligible Costs
Speculation on any kind of property, debt consolidation, relocation of business outside county, media and non-profit businesses are not eligible.