Mo-Kan Regional Council, a planning commission focused on economic development, has applied for an application to create a local Missouri Main Street Program in St. Joseph. The new organization will look at plans to revitalize the Downtown District.
Mo-Kan Regional Council, a planning commission focused on economic development, has applied for an application to create a local Missouri Main Street Program in St. Joseph. The new organization will look at plans to revitalize the Downtown District.
Mo-Kan Regional Council is continuing its efforts to help small businesses by investing in economic development loans.
SBA 504 loans have shown to have competitive and below-market interest rates which are fixed for the lifetime of the loan.
According to SBA estimates, more than 600,000 new small businesses are started each year, and while more businesses are beginning their start-ups in hopes of the COVID pandemic’s tail off, the availability of these loans would be beneficial for certain assets.
“504 loans are for six assets only. That includes real estate, construction, equipment, refinancing would be included in that as well,” Nic Hutchinson, executive director of Mo-Kan, said.
Businesses interested in the 7(A) loan program can expect a maximum fixed rate depending on the size of their loans which can range from $25,000 to $5 million.
Some requirements for receiving a 7(A) loan include businesses being valued at less than $15 million and having an after tax profit of less than $5 million a year over the course of two years, occupying 51% or more of a commercial real estate being renovated or purchased or using 60% or more of a commercial real estate being built.
“I would say over the last year, we’ve really seen an increase in RLF and SBA loans,” Hutchinson said.
More information for these loans and also for revolving loan programs can be found on the Mo-Kan website.
The SBA has also been adamant about making small businesses aware of their PPP opportunities for businesses wanting to keep employees on their payroll.
The Paycheck Protection Program portal opened to first-draw PPP loans on Jan. 11 and it’s now available for second-draw PPP loans. Rebecca Lobina, small business development director at Northwest Missouri State University, advises first-time applicants be aware of how PPP can be used differently now than previously.
“The manner in which you can use the funds has now been expanded, but not only could you use it for what you could before, which is for 60% or more for payroll if they use it for rent or utilities, interest on your business mortgage payments, but you can also use it for what is called covered operations expenditures, supplier costs and covered worker protection expenditures like PPE,” Lobina said.
Already more than 100 businesses in St. Joseph have been approved for loans in which loans ranged from $350,000 and $5 million.
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