Eight counties | 36 cities | one region

ST. JAMES—Are you interested in expanding or starting your own business, but not sure how to fund it? Revolving Loan Funds (RLF), IRP and SBA 504 loan programs are available to eligible small businesses and entrepreneurs in the Meramec Region through Meramec RegionalDevelopment Corporation (MRDC) and Meramec Regional Planning Commission (MRPC).

MRDC and MRPC offer several business financing programs in partnership with areabanks to meet the needs of the business.

MRPC offers a variety of regional revolving loan funds (RLF) that can be used for land, building, renovations, machinery, equipment, furniture, fixtures, working capital and inventory and soft costs.

These programs offer loan terms of up to 20 years, depending on the type of use of the loan. The business must create or retain at least one job per $20,000 loaned or other economic goal. The RLF is typically between $20,000 – $100,000 (maximum) of the project, but no greater than 40 percent of the total project; and must include a minimum business injection of 10 percent. The partnering bank involved invests in the business with financing at least 50 percent of the total project and retains a first position on the loan collateral.

The MRDC board makes RLF loan decisions locally on behalf of MRPC.

“Our programs provide gap financing and reduce the risk to banks, ensuring that businesses get the capital it needs to grow and succeed,” said MRPC Executive Director Bonnie Prigge.

MRDC is a Small Business Administration Certified Development Company and offers the SBA 504 loan program. SBA 504 is designed for larger projects and may be used for land, building, renovation, machinery and equipment, furniture and fixtures and soft costs. The program enables businesses and banks to work together with reduced risk to the bank.

Typically, SBA will fund up to 40 percent of the project with the bank covering at least 50 percent and the borrower injecting 10 percent. The SBA 504 program offers a 20-year long-term, fixedrate on real estate and a 10-year, fixed rate on machinery and equipment.

The bank has the first lien position, enabling them to participate in larger or riskier transactions, with less risk to their depositor’s funds.

With SBA 504 loans, MRDC reviews and recommends loans to SBA, who makes the final decision.
Tim Seams of Maries County Bank in St. James serves as chairman of MRDC.

MRDC is also a 501(c)3 not-for-profit and primarily serves Crawford, Dent, Gasconade, Maries, Osage, Phelps, Pulaski and Washington counties, however, it is authorized to make loans anywhere in Missouri.

The MRDC board is made up of area bankers and community leaders who review loan projects, make local decisions that result in job creation and private investments for the Meramec Region. MRPC provides day-to-day operations for MRDC and also owns the revolving loan funds with MRDC providing loan review and loan decisions. Maria Bancroft is MRPC’s business loan specialist who works with the local businesses utilizing MRDC’s loan program.

Formed in 1969, MRPC is a voluntary council of governments serving Crawford, Dent, Gasconade, Maries, Osage, Phelps, Pulaski and Washington counties and their respective cities. A professional staff of 24, directed by the MRPC board, offers technical assistance and services, such as grant preparation and administration, housing assistance, transportation planning, environmental planning, ordinance codification, business loans and other services to member communities.

To keep up with the latest MRPC news and events, visit the MRPC website at www.meramecregion.org or on Facebook at www.facebook.com/meramecregion.