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
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.