Areas Served: Statewide Mississippi
Mississippi Capital Access Program – Mississippi Development Authority
The Mississippi Capital Access Program (MS CAP), also administered by the Mississippi Development Authority (MDA), is designed to increase the availability of financing for borrowers who, for various reasons, might have difficulty in obtaining conventional loans.
Under the capital access program, a participating financial institution may make a loan to any borrower which MDA determines to be qualified under the rules and regulations adopted by the authority.
MDA establishes loss reserve accounts at financial institutions that participate in the program and requires payments by the financial institution and the borrower to these reserve accounts to protect the lender in the event of a loan default.
Should the borrower default on the loan, the lender is partially covered from loss by reimbursement from the loss reserve account.
The eligible uses of funds include:
- Fixed assets
- Working capital
- Start-up costs
- Rental payments
- Interest expense during construction
- Professional fees
- Repair, renovation & building improvements
The terms are set by the financial institution, and the maximum loan amount is $150,000 per borrower.
Payments made by the borrower into the loss reserve account will have a maximum payment of seven percent.
The minimum interest rate is 1.5 percent.
Contact Information
Mississippi Low Interest Loan Program
Address: PO Box 849
City: Jackson
State: Mississippi
Website:
https://mississippi.org/minority-small-business/grants/http://www.mississippi.org/minority-business/news/accessing-capital.html
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