Derek Dickrader
Business Development Officer
St. Louis County Economic Council
314.615.7681
ddickrader@slcec.com
Web site: http://www.slcec.com/business-finance.html
St. Louis County Economic Council (SLCEC) offers a unique loan program with the following benefits to small businesses wanting to expand within St. Louis County:
· Up to 90 percent financing
· Low floating interest rates
· Variable/fixed rate option
· No prepayment penalty for floating rate
· Fewer eligibility requirements
Program Description
Small business concerns (SBC) located in St. Louis County that wish to purchase (or construct) long-term assets (land, building, machinery, and equipment) are eligible for the BOOST loan program.
The SBC’s bank will lend 50 percent of the total project cost, SLCEC will lend 40 percent and SBC would inject 10 percent. The term of the BOOST loan will be up to 20 years. The bank term and interest rate will be negotiated between the bank and SBC. The bank loan would be senior to the BOOST loan.
Eligibility Criteria
The BOOST loan program eligibility criteria are similar to the SBA 504 loan program. Please contact Derek Dickrader for additional information regarding eligibility.
Project and Loan Size
While there is no maximum project size, the maximum BOOST loan will be $500,000. For projects greater than $1,250,000, either the participating bank loan would exceed 50 percent and/or the borrower equity would exceed 10 percent of the total project cost.
Interest Rates
The interest rate on the BOOST loan can be fixed or viable. Please see the chart below for interest rate comparisons.
Variable Rate. If a variable rate is chosen, it may change daily. There is no prepayment penalty at any time during the loan term.
Fixed Rate. A five-year fixed rate is available. There is a prepayment penalty for a portion of the loan term.
Loan Amortizations, Terms
Loan amortizations will be 20 years for long term assets (purchase or construction of a building), and 10 years for the purchase of equipment.
The term of the loan will be five years, subject to five year renewal(s) upon the mutual agreement between the borrower and the SLCEC.
Loan Fees
BOOST loan fees include costs similar to those of the SBA 504 Loan Program. Please see the application for a listing of all fees.
Loan Application
The BOOST loan program is administered by SLCEC’s business finance staff. The Business Finance Corporation of St. Louis County (BFC) approves all loans. BFC is a 501(c)(6) organization, which has administered the SBA 504 loan program since 1981.