Research and Development Loan
The Mississippi Research and Development Program (R&D Loan Program), administered by the Mississippi Development Authority (MDA) is designed for making loans to private companies to aid in the creation of new and expanding research and development, and technology-based businesses and industries.
Eligibility
To qualify for assistance under the R&D Loan Program a company must meet one of the following classifications:
Research and Development
A business engaged in laboratory, scientific or experimental testing and development related to new products, new uses for existing products or improving existing products. Research and Development does not include any business engaged in efficiency surveys, management studies, consumer surveys, economic surveys, advertising, promotion or research in connection with literary, historical or similar projects.
Technology
The enterprise shall manufacture plastics, automobiles, aircraft, computers or electronics, be a computer design or related facility, or a software publishing facility, with at least ten percent (10%) of the workforce being scientists, engineers or computer specialists. The average wage of all workers employed shall be at one hundred and fifty (150%) percent of the state average annual wage, and a basic health care plan must be provided to all employees.
- Such companies shall employ at least ten (10) persons in full time positions
- The company must inject a minimum of ten percent (10%) equity into the project.
- 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 may be used for land, building and depreciable fixed assets (R&D Project). Loan proceeds may not be used for working capital, debt refinancing or rolling stock.
Terms: Maximum term is 10 years or determined useful life of the project.
Amount: Maximum Loan amount shall not exceed 50% of hte total project cost up to $750,000 per project. Minimum loan amount is $250,000.
Rate: The rate of interest on the loan will be based on the most recent twenty (20) year general obligation bond issued by the State.
Other State finance programs, to include Community Development Block Grants, may not be used to finance the remaining cost of the R&D Project.
How To Apply For Program
The eligible company must submit an application to MDA for approval.
Statute
The Research and Development Loan is authorized under Section 57-61-34, MS Code, Annotated.
Select Mississippi Incubator for additional information.
For more information: Financial Services Division
Phone: 601.359.3552
Fax: 601.359.3619
financial@mississippi.org