Existing Industry Productivity Loan Summary
The Mississippi Existing Industry Productivity Loan Program (Existing Industry Loan Program), administered by the Mississippi Development Authority (MDA) is designed for making loans to existing manufacturing industries that have been operating in the state for at least two (2) years that meet minimum criteria established by MDA. Funding is derived from general obligation bonds.
Eligibility
In order to obtain assistance under the Existing Industry Loan Program, the company must be a manufacturing enterprise, which has operated in the State for not less than two (2) consecutive years. A manufacturing enterprise is one who is exclusively or predominately engaged in activities of an industrial or commercial nature wherein labor or skill is applied by hand or machinery, to materials belonging to the manufacturer so that a new, different, or more useful article is produced for sale.
The company must be financially sound, present evidence that the company can repay the debt and must not have defaulted on any previous loan from the State or Federal Government.
Eligible Projects
Loan funds can be used to finance long-term fixed assets. These are assets through new technology, which will improve productivity and competitiveness of the company. The benefits of such asset will have to be documented.
Key Points
- An existing industry that accepts a loan under this program shall not reduce employment by more than 20%.
- MDA will conduct a financial analysis of the business or industry requesting the loan.
Terms: Term shall be ten (10) years maximum or the determined useful life of the Fixed assets.
Amount: Minimum amount is $250,000: Maximum amount up to 50% of the total project cost or $500,000 whichever is less.
Rate: The most recent issue of 20-Year state general obligation bonds occurring prior to the data the loan is made.
How to Apply for Loan
The eligible entity should contact MDA's Existing Industry Division for more information about the application process.
Statute
The Existing Industry Loan Program is authorized under Section 57-93-1, MS Code, Annotated.
For more information: Financial Services Division
Telephone: 601.359.3552
Fax: 601.359.3619
financial@mississippi.org