The Minority Business Enterprise Revolving Loan Program
Financing Requirements
To be eligible for funding under this program, the business must be certified as a minority business by the State of Mississippi.
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 minimum total project eligible for consideration under this program is $35,001.00 (projects under this amount may be eligible for the MBE Micro Loan Program).
The borrower/owner must provide a minimum of 5% equity investment in the project.
The MBE Loan Program requires a personal guarantee from the borrower and anyone with 20% ownership of the business.
Documentation will be required to show that the project will create and/or retain full-time jobs.
Eligible Categories of Business Financing
Funding may be used for the startup or expansion of businesses. The owner must be a resident citizen of Mississippi; if the business is a corporation or partnership, at least 50% of the owners must be resident citizens of Mississippi.
The owners and managers of the business must be 60% minority as defined by the small business act and shall include all women.
Eligible Project Costs
Purchase and/or renovations of buildings, purchase of machinery and equipment, purchase of land, working capital.
Maximum Loan Terms
- Inventory - 3 years
- Land & Buildings - 15 years
- Machinery & Equipment - 10 years
- Working Capital - 7 years
Interest Rate
The minimum interest rate which may be charged to the minority business on MBFC’s portion if the MBE loan is 2% below the Federal Reserve Discount Rate, and the maximum is 2% above the Federal Reserve Bank Discount Rate.
Fees
The GTPDD will charge an origination fee of 1% on the first $100,000.00 of our loan amount and one-half of 1/2 % on the loan amount in excess of $100,000.00.
Non-Eligible Costs
Speculation on any kind of property, debt, consolidation, relocation of business, media and non-profit businesses are not eligible.