More funding from the EDA is now available for small businesses.
The U.S. Economic Development Administration has awarded CARES Act funds to The St. Louis Local Development Company and the St. Louis Economic Development Partnership to make loans to businesses that have been negatively affected by COVID-19 or that are providing goods or services addressing problems caused by the pandemic, such as manufacturing Personal Protective Equipment.
The program offers low interest loans with a minimum interest rate of 2% and a minimum loan amount of $10,000 and will be subject to credit approval.
Loan Terms:
- Amounts ranging from $10,000 to $150,000
- Interest rates starting at 2%
- Typically 3 to 5 years, depending on the nature of the project
- Must be a for-profit business located in the City of St. Louis or St. Louis County
- Loan funds may be used for working capital needs and the purchase of inventory, equipment, machinery, and other fixed assets
Use of loan proceeds:
- Working Capital
- Inventory
- Equipment and Machinery
- Real Estate
- Cannot be used for refinancing existing debt
Fees:
- $100 non-refundable application fee
- Origination fee of 2% (may be deducted from the loan proceeds
- Any closing costs associated with the loan
Eligibility:
- For-profit businesses located in the City of St. Louis or St. Louis County
- Business must have current business license and be current on all taxes or on an approved payment plan
- Must pass credit approval process
- 1 job created or retained for every $35,000 borrowed
- Persons or entities owning 20% or more of the business will be required to guaranty the loan
Process:
- Applicant must submit a complete application along with all required documents and application fee to one of our loan officers
- Loan officers will work with applicant throughout the credit approval process
- Loan applications will be presented to the appropriate Board of Directors for review and approval on a monthly basis, and all required documentation must be received at least two weeks prior to the review date.
- Loans will be closed and funded as quickly as possible after approval by the Board.
Click here for more information and to apply.
If you have any questions about the program or need assistance completing the loan application, please contact one of our loan officers listed below:
Zack Folk
314.276.4203
About the U.S. Economic Development Administration (www.eda.gov)
The mission of the U.S. Economic Development Administration (EDA) is to lead the federal economic development agenda by promoting competitiveness and preparing the nation’s regions for growth and success in the worldwide economy.
An agency within the U.S. Department of Commerce, EDA makes investments in economically distressed communities in order to create jobs for U.S. workers, promote American innovation, and accelerate long-term sustainable economic growth.
