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Nov. 13, 2009 For Immediate Release Regional Loan Board Honors Phelps County Bank ST. JAMES—Meramec Regional Development Corp., the regional loan board that offers Small Business Administration, presented its 2009 Lender of the Year award to Phelp County Bank. MRDC Chairman Tom Klebba presented the award to David Connell, senior vice president of Phelps County Bank, at Meramec Regional Planning Commission’s Annual Dinner Nov. 9 at the Havener Center in Rolla. Each year, the MRDC board selects one bank for the award. The decision is based the number of loans the bank has made in partnership with MRDC, the amount of private investment and the jobs created. For Fiscal Year 2008-2009, MRDC and Phelps County Bank partnered with MRDC on five loans for three businesses that created or retained 40 jobs and encouraged over $2 million in private investment. Phelps County Bank (PCB) is a community bank, owned by the employees through an Employee Stock Ownership Plan (ESOP). PCB competes with both independent banks and branches of large state and national banking companies. PCB was established by local citizens in 1963 and achieved 100 percent employee ownership in 1993. It has three locations in Rolla and one in St. James. Bill Marshall serves as CEO. The Meramec Regional Development Corporation, an eight-county non-profit corporation that provides lower-interest loans to help finance business start-ups and expansions primarily 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 and retain jobs. MRDC packages and services 504 loans, which provide long-term, low fixed-rate financing for practically any type of business that will create new or retain jobs in the region. The local board reviews and recommends 504 loan applications to SBA, who makes the final decision and funds the loan. With SBA loans, the bank typically provides 50 percent of the financing, SBA provides 40 percent and the borrower injects 10 percent. The 504 loan proceeds can be used for fixed assets such as land, building and equipment as well as leasehold improvements. SBA will loan up to $2 million on most projects, and allows the partnering bank to take the first deed of trust on the property and/or equipment. In addition to the SBA 504 program, the MRDC board is responsible for reviewing and making loans through two local revolving loan funds owned by Meramec Regional Planning Commission. One fund was created through a grant from the U.S. Economic Development Administration and local match dollars from local counties; the other—the Intermediary Relending Program—was capitalized through a long-term loan with USDA Rural Development. In addition to funding fixed assets, the RLF and IRP can also provide businesses with working capital and inventory. These loans offer a fixed rate below the bank’s rate for up to 15 years. For more information on SBA or revolving loan fund loans, businesses may contact Tonya Price at 573-265-2993 or by email at tprice@meramecregion.org or mkardon@meramecregion.org.
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