More funds are now available from the EDA for small businesses.
The US Economic Development Administration has given CARES Act funding to The St. Louis Local Development Company and the St. Louis Economic Development Partnership To provide loans to companies that have been negatively impacted by COVID-19 or offer goods or services to solve problems caused by the pandemic, such as the manufacture of 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 is subject to credit approval.
- Amounts between $ 10,000 and $ 150,000
- Interest rates from 2%
- Typically 3 to 5 years depending on the type of project
- Must be a for profit company located in the city of St. Louis or St. Louis County
- Loan funds can be used for working capital needs and purchasing inventory, equipment, machinery, and other fixed assets
Use of loan proceeds:
- Working capital
- Equipment and machines
- Cannot be used to refinance existing debt
- Non-refundable registration fee of $ 100
- 2% origination fee (can be deducted from loan proceeds
- All closing costs associated with the loan
Eligibility to participate:
- Not for profit in the city of St. Louis or in St. Louis County
- The company must have a current business license and be aware of any taxes or an approved payment schedule
- Must pass the loan approval process
- 1 job is created or maintained for every $ 35,000 borrowed
- Individuals or organizations that own 20% or more of the business must guarantee the loan
- The applicant must submit a complete application along with all required documents and the application fee to one of our loan officers
- The loan officers work with the applicant throughout the loan approval process
- Loan applications are submitted to the relevant Board of Directors on a monthly basis for review and approval. All required documents must be received at least two weeks before the review date.
- Loans will be closed and funded as soon as possible after approval by the Board of Directors.
click Here for more information and to apply.
If you have any questions about the program or need help filling out the loan application, please contact one of our loan officers listed below:
About the US Economic Development Administration (www.eda.gov)
The mission of the US Economic Development Administration (EDA) is to lead the federal economic development agenda by promoting competitiveness and preparing the regions of the country for growth and success in the global economy.
EDA, a US Department of Commerce agency, invests in economically disadvantaged communities to create jobs for US workers, fuel American innovation, and accelerate long-term sustainable economic growth.