Areas Served: River Market area with boundaries of the Missouri River on the north, Beardsley Road on the west, I-70 on the south and I-35/29 on the east.
The River Market Loan Fund (RMLF) provides financing for fixed assets and/or working capital to businesses located in the River Market area with boundaries of the Missouri River on the north, Beardsley Road on the west, I-70 on the south and I-35/29 on the eaSt. The maximum loan per borrower and affiliates is $50,000 and, if the project is less than $25,000, a private lender is not required.
If the project size is over $50,000, then the normal structure for fixed assets is a private lender for 50% of the costs, owner equity injection of 10% of costs, and the RMLF for 40% of costs, up to $50,000. The loan term is up to 15 years on real estate and up to five years on equipment and fixtures; and the interest rate is the prime lending rate minus 1.5%.
The RMLF can fund up to 50% of working capital projects over $25,000 with a term loan for up to five years.
RMLF financing is generally subordinate to the private lender’s lien.
This program was funded through a grant from a local casino.
Geographic Area: Business must be located within the River Market bounded by Missouri River on the North, Beardsley Road on the West, I-70 on the South, and I-35/29 on the EaSt. Eligible Costs: – Purchase/Improvements to land and building.
Leasehold Improvements.
-Machinery & Equipment, Furnishings & Fixtures.
– Soft costs of the project: interim interest, professional fees, etc.
– Working capital, excepting any type of taxes.
Eligible Borrowers: – Private, for profit businesses that are considered small as per the Small Business Administration guidelines.
– Preference is given to women-owned and minority-owned businesses.
– Project must conform to land use and general development program for the area.
– Projects not eligible for financing, if credit is otherwise available on terms and conditions that would allow the project to proceed.
– Refinance limited to situations in which existing loan needs to be retired to provide a first lien position.
No refinance or payouts to shareholders or stockholders.
– Not for political activities, private clubs, financing/ investment companies, or a business in which a state, local or federal elected official, or employee of City has ownership.
Amount: – Maximum of $50,000 per borrower, including affiliates, generally not to exceed 40%.
of total project costs.
Borrower generally contributes 10% of the costs as equity.
Private lender generally provides financing for 50% of the project on a term equivalent to the River Market loan.
Maximum of $25,000 per borrower when EDC – Loan is sole lender of the project.
Term, Rate and Fees: – Maximum term is 15 years on real estate; five years on equipment.
– Working capital loan term will not exceed five years.
– Interest rate is set at Prime minus 1.5%, fixed or variable.
– Origination fee of 1.5%; annual servicing fee of 0.25% of the original loan amount.
– Fees include the legal fees, filing fees, and other fees directly related to loan closing.
Contact InformationEconomic Development Corporation of Kansas City Missouri
Address: 1100 Walnut, Suite 1700
City: Kansas City
State: Missouri
Website:
http://edckc.com/business-solutions/financing-2/river-market-loan-fund/
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