June 1, 2009
Citing need for critical capital in difficult economic times, Gov. Nixon encourages small businesses to participate in his low-interest loan initiative
Gov. Nixon announces opening of applications for Small Business Loan Program
JEFFERSON CITY, Mo. - Gov. Jay Nixon announced today that applications and guidelines for the Missouri Small Business Loan Program are now available to Missouri businesses. Created by the Governor's executive order and approved by the Missouri Development Finance Board, the start of the Small Business Loan Program marks another advance in Gov. Nixon's agenda for economic development by providing much-needed capital to small businesses during these difficult economic times.
"Small businesses are the engine that drives Missouri's economy, and our economic difficulty has hit those businesses hard. In order for those businesses to do more than merely keep their doors open, for them to actually create new jobs to grow our economy, small business owners need access to capital. Beginning today, small businesses across Missouri can begin applying for this much-needed resource. This pool of funds will help those businesses thrive and jumpstart our economy," said Gov. Nixon.
Through Gov. Nixon's Small Business Loan Program, Missouri businesses with five employees or fewer may apply for loans of between $2,500 and $25,000. The loans are typically repaid over a ten-year term and at a low interest rate of 3 percent. The program's process requires the submission of a business plan by eligible applicants.
"I want to encourage small business throughout the state to apply for my loan program, which will give these Missouri businesspeople an extra opportunity to succeed in these tight financial times," added Gov. Nixon.
One of Gov. Nixon's first acts upon taking office was the issuance of Executive Order 09-03, which instructed the Missouri Department of Economic Development and the MDFB to create a tool for giving small businesses access to low-interest loans to help them through challenging economic conditions. The Governor signed this order on Jan. 13, his first full day in office.
The plan gained initial approval by a vote of the MDFB on March 24 and was granted final approval and $2 million in funding at the MDFB's regular meeting on April 21. The program was approved by a nearly unanimous vote.
Missouri businesses wishing to apply for one of the loans can go online to www.ded.mo.gov/MOloan/index.htm to download an application.