As part of the Economic Development Administration’s Economic Assistance Program, EDA’s regional offices award competitive grants to units of local government, state governments, institutions of higher education, public or private non-profit organizations, EDA-approved economic development district organizations, and Indian Tribes to establish Revolving Loan Fund’s. The RLF recipient, in turn disburses money in the form of loans at interest rates, which are at or below market rate to small businesses or to businesses that cannot otherwise borrow capital. As the loans are repaid, the grantee uses a portion of the interest earned to pay administrative expenses and adds remaining principal and interest repayments to the RLF’s capital base to make new loans.
The Mark Twain Revolving Loan Fund, Inc. is designed to provide gap financing to new or expanding businesses, which will induce participation from private lenders. Loans may also be utilized for retention efforts. Businesses located in the following counties are eligible for loan assistance: Audrain, Macon, Monroe, Marion, Pike, Ralls, Randolph and Shelby.
The RLF can provide up to 30% of the monies necessary for a project and has a maximum loan amount of $150,000.00.
Eligible activities include the purchase of land, buildings, construction, equipment, working capital, inventory and machinery. One job must be created or retained for each $15,000.00 of RLF funds requested. Other requirements include compliance with Civil Rights laws, handicapped accessibility and environmental requirements for all loans. Loans used for construction must comply with Federal wage rates.
The Council of Governments administers the loan program by accepting applications, working closely with the Mark Twain Revolving Loan Fund Board of Directors, servicing loans, monitoring the progress of the program and reporting to the Economic Development Administration.
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