JCEDC has a number of financial resources available to assist business- from small startups to existing businesses and industries. In this section you will find some general information on how economic development projects are funded along with a summary of the financial resources available. By clicking on the program name, you can access detailed information on program requirements, eligibility criteria, rates, terms and contact information.
A Note on How Economic Development Projects Are Financed:
Many times, particularly with economic development projects, owner equity and conventional bank financing do not provide all the funding that is required. Typically, this occurs because the bank has lending limits they must adhere to, there is inadequate equity, there is insufficient collateral or the business cannot afford market interest rates and/or term requirements.
Generally speaking, economic development financial tools exist to fill this funding “gap.”
Typically, an economic development financing deal looks like this:
- Owner Equity. Must be present in the package – should be at least 10% of the entire financial package. More may be required, and more is better.
- Bank Loan. Another required element in any financial package – could be anywhere from 60% to 90% of the project's funding.
- "Gap" Financing Only comes into play when needed, and only in the amount necessary to make the deal work. Could potentially come from multiple sources and represent up to 40% of a project's funding.
- We do not compete with banks and in no instance will economic development financing replace bank financing. Public financing exists solely to supplement private financing in order to move worthwhile economic development projects forward. Therefore, positive public benefit is required. A positive public benefit is usually defined in terms of quality jobs created or retained and net new investment.
Missouri's Small Business Credit Initiative –
Missouri Technology Corporation’s “IDEA Funds.”
- The IDEA Funds stands for Innovation, Development and Entrepreneurial Advancement for high-tech companies. $16.9 million of the state’s SSBCI is dedicated to the fund.