MRPC News Release
May 30, 2006
For immediate release
For more information, contact:
Candace Connell or Maria Kardon, (573) 265-2993
SBA TRAINING EDUCATES LENDERS, BANKERS FROM AREA ORGANIZATIONS
ST. JAMES – Commercial lenders in the region recently took advantage of a Small Business Administration commercial lender training program hosted on April 27 by the Meramec Regional Development Corp., the local certified development corporation for Small Business Administration 504 programs.
Training highlights included information on three of SBA's commercial lending program, including the SBA 7 (a), The SBA 7 (a) Express and the SBA 504 program, and an overview of the Meramec Region's Revolving Loan Fund and the new Intermediary Relending Program. Brenda Klages, a senior area manager with SBA, showcase SBA programs while Candace Connell, business loan specialist with MRPC, presented information on local financing programs. According to Connell, 14 participants attended and several lending institutions were represented, including the Bank of Salem, First Community National Bank, Town and Country Bank, UNICO Bank (Potosi), United Bank of Union and the University of Missouri Center for Entrepreneurship and Outreach.
The training was sponsored by the St. Louis District SBA office, in cooperation with MRDC and MRPC.
“The reason we hosted the training was to educate area bankers and lenders on government sponsored loan programs,” Connell said. “It is something that is part our plan at MRDC – to provide on-going education on different types of programs available to help banks and lenders meet their customers’ needs.”
MRDC, through its two loan funds, provides low-interest loans to help finance business start-ups and expansions in Crawford, Dent, Maries, Gasconade, Osage, Phelps, Pulaski and Washington counties. Working in cooperation with banks, the programs are designed to induce private lenders to participate in business loans in order to create jobs in the region. The regional revolving loan fund was created through a grant from the U.S. Economic Development Administration and local match dollars from local counties. The MRDC board reviews and acts on RLF loans.
MRPC was recently awarded a $500,000 loan from USDA to recapitalize the fund, and Connell discussed opportunities offered with these funds.
MRDC also packages and services 504 loans, which provide long-term, low fixed-rate financing for practically any type of business that will create new jobs in the region. The local board reviews and recommends 504 loan applications to SBA's St. Louis office.
Both RLF and 504 loan programs offer long-term, fixed-rate financing and can provide a significant up to 40 percent of the total project funding, working with a private lender and having the applicant to supply a relatively small amount of cash or equity.
Persons needing more information on the training or RLF and SBA loans should contact Connell or Maria Kardon at (573) 265-2993 or email them at cconnell@meramecregion.org or mkardon@meramecregion.org.
-30-