Business Loan Programs

The Southern Mississippi Planning and Development District continues to promote economic development through the use of our loan programs designed to supplement other financing sources.

Funding from these programs may be used to provide a portion of the borrowed funds for a project to start a new business or to expand an existing business. Most of the time, SMPDD will establish a partnership with a commercial bank that will provide the additional borrowed funds; however, stand-alone financing is also available.

Revolving Loan Funds

Funding available for start-up or existing businesses
Funding available for job creation or retention
Funding for real estate, machinery and equipment, inventory and working capital
Terms: 15 year for real estate, 10 years for machinery and equipment and 5 years for inventory/working capital
SMPDD can provide stand-alone financing or partner with banks to provide supplemental financing
Exclusions: investment property and non-profits, refinancing and unsecured financing

Minority Loan Program

SMPDD can provide funding up to $250,000 to start up or existing businesses that are credit worthy and also hold a Minority Business Enterprise certification provided by the Mississippi Development Authority. The purpose of this program is to loan money for real estate, machinery and equipment, inventory and working capital.

Minority Business Enterprise Loan Program:

Loan amounts range from $15,000 – $250,000
Qualifying business- Certified prior to funding by Minority ans Small Business Division of MDA; credit worthy and demonstrates ability to re-pay; Mississippi resident; in compliance with all state and federal regulatory agencies; must not be in default on any previous debt or obligation with state or federal government
Interest rates cannot exceed 2% above Federal Discount Rate
Terms range from 5 to 15 years depending upon use of funds and collateral
1% origination fee that can be taken from loan proceeds
Collateral is required (no unsecured financing)
Borrower must show 5% equity in project (cash or other tangible assets)
Exclusions-Cannot pay off existing debt or provide owner distribution; investment property

Minority Business Enterprise Micro-Loan Program:

Loan amounts $2,000 to $35,000
Interest rate is 4% above Federal Discount Rate
Can be used to finance 100% of total project subject to 5% owner equity injection

SBA 504 Loan Program

SMPDD is pleased to announce a partnership with Three Rivers Planning and Development District (TRPDD) and its Community Development Corporation (CDC) to originate U.S. Small Business Administration (SBA) 504/CDC loans. SMPDD will be originating and taking applications for these loans in its 15-county area. The SBA 504 Loan Program is for the purchase and use of long-term fixed assets such as land, buildings and certain equipment. SBA 504 loans are a combination of traditional bank financing and SBA 504/CDC financing owners’ equity. The maximum SBA 504 loan amount is $5,000,000 with the maximum participation not to exceed 40% of the project cost. Once applications are packaged, they will be forwarded to TRPDD’s loan staff for underwriting, processing and approval. This product is a great addition to SMPDD’s existing Revolving Loan Funds allowing the loan staff to service its district’s businesses by being able to provide an option for those businesses that may need funding in excess of the existing Revolving Loan Fund maximum loan amount of $500,000.

Community Development Loans

SMPDD’s Board of Directors recently approved a new loan program for local governments. Using SMPDD local funds, the program is designed to provide loans to local municipalities and county governments for community development purposes. The fund will only be utilized when the proposed project does not meet the guidelines of the existing Revolving Loan Fund. The job creation requirement is lifted for the local program, but the applicant must be solvent as verified through annual audits and a specific repayment method. The maximum loan amount is $175,000 and the project must address a community development need in the area.