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Home > Programs > Financial Assistance for Business Customers > Mississippi Capital Access Loan Program (MS CAP)

Mississippi Capital Access Loan Program (MS CAP)

The Mississippi Capital Access Program (MS CAP), administered by the Mississippi Development Authority (MDA), is designed to increase the availability of financing for borrowers who for various reasons might have difficulty in obtaining conventional loans.

The Mississippi Development Authority may establish loss reserve accounts at financial institutions that participate in the CAP program, and require payments by the financial institution  and the borrower to such loss reserve accounts.  Under the capital access program, a participating financial institution may make a loan to any borrower that MDA determines to be qualified under the rules and regulations adopted by the authority and be protected against losses from such loans as provided in the program. Contributions from the CAP into the loss reserve account shall be used in the event of a loan default.

Eligibility

Businesses, which are eligible to participate in the Capital Access Program, include the following:

  • A Small Business*
  • A Small Disadvantaged Business*
  • A Minority Business (minority or woman owned business)

*As defined by Section 8(d) of the Small Business Act (15 USCS 637(d)).

Eligible Projects

Eligible projects directly relating to the creation or expansion of a small business may include, but not limited to the following: 

  • Fixed assets
  • Working capital
  • Start-up costs
  • Rental payments
  • Interest expense during construction
  • Professional fees related to the project.

The Financial Institution sets the terms and conditions of the MS CAP loan. However, the funds cannot be used to pay off existing debt and/or creditors; consolidation purposes; construction or purchase of residential housing; or real property that is held primarily for sale or investment.

Terms:           Set by Financial Institution
Amount:         Maximum loan is $150,000 per borrower, matching the total amount contributed by the Financial Institution and the Small Business
Rate:              Minimum of 1.5% on loan amount, maximum of 3.5%

How To Apply For Program

Eligible entities should contact a participating financial institution for more information.

Statute

The Capital Access Loan Program (CAP) is authorized under Section 57-61-36(5) MS Code, Annotated.

For more information:
Financial Services Division
Telephone: 601.359.3552
Fax: 601.359.3619
financial@mississippi.org