May 1, 2009
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Phelps County Bank Makes Donation to Regional Loan Programs
ST. JAMES—Phelps County Bank has joined the list of contributors who have provided matching funds to support the efforts of Meramec Regional Planning Commission and its lending arm, the Meramec Regional Development Corp., to recapitalize its local loan fund so they can continue to help businesses in the Meramec Region grow.
Phelps County Bank donated $4,000. A total of $30,000 has been raised for the cause.
“When we were asked to participate in a contribution to MRDC to enable them to receive additional grant funds from their federal funding partners, we responded without hesitation to fund that request,” said Bill Marshall of Phelps County Bank.
“We appreciate the lending programs MRDC has implemented to assist us with our borrowers. These programs have allowed us to expand our lending to the betterment of the businesses in our communities,” Marshall added.
MRPC needs $125,000 of local funds to secure $500,000 in additional loan funds through USDA Rural Development’s Intermediary Relending Program (IRP). It took about 18 months to loan the first $625,000 of IRP funds, said Richard Cavender, executive director of MRPC.
“We appreciate the foresight of MRDC and MRPC, in facilitating increased availability of lending in our respective areas,” Marshall added.
Cavender explained, “Right now, we are turning businesses away. As credit gets tighter, businesses look at all avenues of funding, and our programs fill the gap for businesses and reduce the risk for our local banks.”
MRPC has also loans all of its other revolving loan fund (RLF).
Both the RLF and IRP are popular because of their flexibility. In addition to funding fixed assets, the RLF and IRP can also provide businesses with working capital and inventory. These loans offer a fixed rate below the bank’s rate for up to 15 years. All loans are made in partnership with local banks.
MRDC also provides Small Business Administration 504 loans, which right now is offering refinancing opportunities with some fees being waived for the borrower and the lender.
“We truly appreciate Phelps County Bank’s support of the program,” said Cavender. “Especially during these economic times, we need to have a variety of financing tools at the local level for new and expanding businesses. We have partnered on many loans with PCB, and this has generated more economic activity in the entire region,” Cavender said. “It’s a win-win for all involved.”
Businesses interested in making a donation to MRDC for IRP matching funds can contact Price at 573-265-2993 or by email at email@example.com for more information. MRDC is a 501©3 non-profit, and donations are tax-deductible.
Bill Marshall, president of Phelps County Bank, left, presents a check to Richard Cavender of Meramec Regional Planning Commission to help recapitalize the region’s Intermediary Relending Program.