Financing & Funding
There are several financing programs available to businesses in the City of St. Louis — including grants and loans administered by SLDC.
SLDC Loans & Grants
LDC Commercial Loan
The St. Louis Local Development Company (LDC), a development board staffed by SLDC, provides low-interest loans to small businesses for working capital needs and the purchase of equipment, inventory and real estate. All loans must be approved by the LDC Board of Directors.
The LDC has received CARES Act funds from the U.S. Economic Development Administration (EDA) to assist small businesses that have been negatively affected by COVID-19 or that are providing goods or services to address problems caused by the pandemic.
SLDC partners with the St. Louis Economic Development Partnership to staff the LDC.
Tax Exempt Revenue Bond Financing
The Industrial Development Authority of the City of St. Louis, Missouri (IDA) issues tax-exempt revenue bonds for long-term, fixed-asset financing at below-market interest rates to finance large-scale industrial, multi-family housing and non-profit development projects in the City of St. Louis.
ScaleUpSTL Business Growth Loans
SLDC has invested $2.5 million to create a new loan that offers short-term financing to qualified small businesses and non-profits to meet immediate capacity building and cash flow needs.
MobilizeSTL Contractor & Supplier Loans
To provide short-term loans to small construction contractors and suppliers serving as vendors to a major employer or on a construction project, SLDC has invested $2.5 million to create a new loan.
Partner-Provided Financing (Non-SLDC)
Business Consortium Fund
The Business Consortium Fund, Inc. (BCF) is a minority business development fund created by the National Minority Supplier Development Council (NMSDC). The BCF provides contract financing to NMSDC-certified minority businesses in America, through a network of local participating banks and NMSDC affiliates.
Justine Petersen Housing and Reinvestment Corporation
Justine Petersen Housing & Reinvestment Corporation (JPHRC) is a Small Business Administration (SBA) micro-loan intermediary lender.
Missouri Linked Deposit Program
The Missouri State Treasurer’s Office linked deposit program, MOBUCK$, invests in Missouri small business, agriculture and governmental entities.
Missouri Works Program
As the state’s number one incentive tool for expansion and retention, the Missouri Works program, administered by the Missouri Department of Economic Development, helps businesses access capital through withholdings or tax credits to embark on facility expansions and create jobs. This program can also help businesses purchase equipment to maintain its facility in Missouri.
Resources for Missouri, Inc.
Resources for Missouri, Inc. is an intermediary lender for the SBA's Micro Loan Program available to entrepreneurs operating existing or start-up businesses that have not been able to obtain traditional financing.
SBA 504 Loan Program
The SBA 504 Loan Program is a lending partnership featuring a third-party lender (usually a bank) providing a fixed or floating rate loan and The St. Louis Local Development Company (LDC), a Certified Development Company for the SBA, providing a fixed rate SBA 504 loan.
SBA 504 loans are geared toward healthy, expanding for-profit businesses seeking long-term, low down-payment financing for major fixed assets. These loans can be used for the purchase and renovation of real estate and for the purchase of long-term equipment. They may also be used to refinance existing debt under certain circumstances. These loans cannot be used for working capital or the purchase of inventory.
SBA 7(a) Loan Guaranty Program
The 7(a) Loan Program, SBA’s most common loan program, includes financial help for small businesses with special requirements. This is a good option when real estate is part of a business purchase, but it can also be used for:
Short- and long-term working capital
Refinancing current business debt
Purchasing and installation of machinery and equipment
Purchasing furniture, fixtures, and supplies
The maximum loan amount for a 7(a) loan is $5 million. Key eligibility factors are based on what the business does to receive its income, its credit history, and where the business operates. Your lender will help you figure out which type of loan is best suited for your needs.
Small Loan Advantage Initiative
SBA's Small Loan Advantage Initiative (SLA) lending is available to entrepreneurs that meet the normal requirements for an SBA business loan guaranty and have an average, or better, credit score and financing needs of $350,000, or less.
Most commercial banks are able to make SBA-guaranteed loans, including the SLA and Standard 7(a) Loan Program and International Trade Loan. Contact a commercial loan officer at the bank of your choice for more information or call the SBA's St. Louis District Office at 314-539-6600 and ask for a lender relations specialist for more information.
Economic Development Incentives
SLDC has a variety of Economic Development Incentives available to businesses whose growth plans include the City of St. Louis.