MO Development Finance Board Announces "Small Communities Operating Capital Loan Relief Program"
The Missouri Development Finance Board has announced the new "Small Communities Operating Capital Loan Relief Program" for Missouri incorporated cities under 25,000. The new program will allow $5 million to be distributed to communities dealing with the economic challenges from COVID-19. The announcement was released Wednesday, July 22, by the Missouri Department of Economic Development.
The program is part of the Governor’s "Show Me Strong Recovery" plan, aimed at providing Missouri communities access to a temporary working capital operating loan which addresses projected fund shortfalls due to COVID-19. The loans are being offered to assist cities in the maintenance of existing governmental services.
Loans from this program must be used to replace tax, fees, or other governmental revenues that have been lost due to COVID-19. Loan amounts are from $50,000 to $300,000, with a zero percent interest rate in the first year.
Applications for the Small Communities Operating Capital Loan Relief Program are due by August 31, 2020.