Minority Loan Program

SMPDD can provide funding up to $250,000 to start up or existing businesses that are credit worthy and also hold a Minority Business Enterprise certification provided by the Mississippi Development Authority. The purpose of this program is to loan money for real estate, machinery and equipment, inventory and working capital.

Minority Business Enterprise Loan Program:

  • Loan amounts range from $15,000 – $250,000
  • Qualifying business- Certified prior to funding by Minority ans Small Business Division of MDA; credit worthy and demonstrates ability to re-pay; Mississippi resident; in compliance with all state and federal regulatory agencies; must not be in default on any previous debt or obligation with state or federal government
  • Interest rates cannot exceed 2% above Federal Discount Rate
  • Terms range from 5 to 15 years depending upon use of funds and collateral
  • 1% origination fee that can be taken from loan proceeds
  • Collateral is required (no unsecured financing)
  • Borrower must show 5% equity in project (cash or other tangible assets)
  • Exclusions-Cannot pay off existing debt or provide owner distribution; investment property

Minority Business Enterprise Micro-Loan Program:

  • Loan amounts $2,000 to $35,000
  • Interest rate is 4% above Federal Discount Rate
  • Can be used to finance 100% of total project subject to 5% owner equity injection

Click here for application.

For more information, contact Marvin Dickey or Stephen O’Mara at (228)868-2311 or email us at mdickey@smpdd.com or somara@smpdd.com.

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