MRPC News
September 9, 2005
For immediate release
For more information, contact:
Candace Connell or Bonnie J. Prigge, (573) 265-2993
LOCAL LOAN BOARD ELECTS OFFICERS, CONFIRMS BOARD MEMBER APPOINTMENTS
Group to pursue USDA loan program to recapitalize program
ST. JAMES-Alan Vickers of First Community National Bank, located in Vienna,
will serve another two-year term as president of the Meramec Regional Development
Corp., a 501(c) 3 loan board that provides low-interest loans to help finance
business start-ups and expansions in Crawford, Dent, Maries, Gasconade, Osage,
Phelps, Pulaski and Washington counties.
Vickers was re-elected during the group's Aug. 17 meeting at Meramec Regional
Planning Commission in St. James.
Tom Klebba of Linn State Bank was elected vice president. Klebba is new to the
board and also serves as MRPC at-large commissioner for banking. Jim Marcellus
of Phelps County Bank of Rolla will continue as secretary, and Darlene Weber
of Unico Bank in Washington County will serve another two-year term as treasurer.
The MRDC board also confirmed appointments to the board. The presiding commissioners
of member counties are responsible for appointing members to the MRDC board.
Appointments confirmed at the August meeting include:
o From Crawford County, Larry Dearing and W.H. "Pete" Lea, both retired
businessmen;
o From Gasconade County, Kathy Schlottach of Community Bank of Owensville and
Jay Gourley, economic developer for the city of Hermann;
o From Maries County, Joe Weidinger, a Realtor from Vienna;
o From Phelps County, Jim Marcellus of Phelps County Bank and Tracy Bowen, business
development specialist with University Extension.
o From Washington County, Hazel Skaggs, an insurance agent from Potosi.
In other business, the MRDC board:
o Approved the signing of loan closing documents for Honse Cafe and Convenience
Store in Vienna and Britton Funeral Home in Steelville.
o Approved a servicing fee schedule for SBA 504 loans. The fee is a percentage
of the loan, ranging from 1.35 percent for smaller loans to 0.5 percent for
larger loans.
o Approved a professional services contract with MRPC, whose business loan staff
packages loans on behalf of Meramec Regional Development Corporation.
o Approved staff to apply to USDA Rural Development for its Intermediary Relending
Program to recapitalize MRDC's local loan funds. USDA offers a relending program
whereby funds are loaned to a borrower for 30 years at 1 percent interest. The
borrower, MRDC in this case, would then loan to qualified projects.
"We have about $3,000 in our revolving fund, so we need to recapitalize
it," said Candace Connell, MRPC's business loan officer. "There is
a great need for these funds to ensure continued economic growth in our region."
MRDC offers two programs: the Regional Revolving Loan fund and the Small Business
Administration's 504 program. While SBA's program has basically unlimited dollars
to loan, the regional loan fund was started with a $400,000 grant from the US
Economic Development Administration and locally generated matching dollars.
Another $100,000 was added to the fund about a year ago and was targeted for
Crawford, Dent, Phelps and Washington counties, which have been designated as
Delta counties. While funds continue to be loaned out and paid back, the demand
for loans is greater than the dollars paid back each month, Connell explained.
MRDC typically works with loans that may be riskier or larger than most banks
would normally do. Both the SBA 504 and the region RLF work in partnership with
banks and are designed to induce private lenders to participate in business
loans in order to create jobs in the eight-county region. Businesses and bankers
needing more information on loans can contact Connell at (573) 265-2993 or email
her at cconnell@meramecregion.org.