LDC to Provide Tornado Recovery Loans to Impacted Companies in St. Louis City

Applications for no interest loans of up to $5,000 due by September 30

The St. Louis Local Development Company (LDC), a nonprofit corporation that provides loans to small businesses located in the City of St. Louis, has announced it will provide loans of up to $5,000 with no interest to businesses that suffered damage from the May 16 tornado. LDC works in cooperation with the City of St. Louis, St. Louis Development Corporation (SLDC) and St. Louis Economic Development Partnership (STL Partnership) and administers several loan programs designed to assist businesses grow and create jobs. STL Partnership and SLDC will be managing the tornado relief loans.

“For businesses that were in the path of the tornado and have been unable to reopen, these no-interest loans may supplement other available financial options,” said Cara Spencer, mayor of the City of St. Louis. “The collaboration with the City, SLDC, STL Partnership and LDC is another example of how local partners are supporting those whose livelihoods were also victims of the tornado.”

To be eligible for the loan, for-profit companies must have suffered damage from the storm—either physical damage to the building or experienced a disruption in business operations. Priority will be given to businesses located within the defined path of the May 16 tornado. The business must also be operating in the City of St. Louis or plan to reopen the business in the City to be eligible.

“We are glad to be working together with the City of St. Louis, SLDC and LDC to provide loans to city businesses impacted by the tornado,” said Rodney Crim, CEO and president of STL Partnership. “We hope this funding helps impacted companies as the community continues to recover.”

Loan proceeds may be used by businesses for working capital needs or to purchase inventory or equipment.

“We know this funding won’t solve all the problems our business community suffered, but it’s a small piece of the puzzle,” said Otis Williams, Interim SLDC president and CEO. “Having a no interest rate allows the businesses access to funds without creating more debt.”

 

The deadline for businesses to submit an application is Tuesday, September 30.