Economic Development

Projects which are eligible for assistance must be directly related to the airport facility and are limited to construction, expansion, improvements, rehabilitation, or repair of: A. Drainage systems; B. Energy facilities (power generation and distribution); C. Sewer systems (pip…

Loan funds may not be used for working capital by the airport facility, nor to provide facilities for utilization by a gambling vessel. Notes 6 Miss. Code. R. 1-13.4 Miss. Code Ann. § 57-61-41 et seq. (Rev. 2008). Amended 6/3/2021

The maximum which may be loaned from Airport loan funds to finance any one project is $1,000,000. Airport loan funds may be used for one hundred percent (100%) project financing. The maximum term will be for up to ten (10) years with an interest rate of one percent (1%) per annum…

The principal and interest will be paid on an annual basis and will be used to fund future loans under the Airport Loan Program. Notes 6 Miss. Code. R. 1-13.6 Miss. Code Ann. § 57-61-41 et seq. (Rev. 2008). Amended 6/3/2021

The application to be submitted by a Local Sponsor must include: A. The purpose of the proposed loan including a list of eligible items and the cost of each; B. The estimated cost of the total project, a description of the Local Sponsor's investment in the project, and all public…

Two (2) copies of the application must be submitted to MDA. MDA will evaluate the application to determine if the project meets the program criteria and what terms and conditions the loan should bear. Notes 6 Miss. Code. R. 1-13.8 Miss. Code Ann. § 57-61-41 et seq. (Rev. 2008). A…

If applicable, MDA may require a lien on the improvements made at an airport for the benefit of a private company. The private company must be willing to grant a lien or to provide collateral (e.g., a letter of credit, corporate or personnel guarantees, in an amount and manner to…

The Small Enterprise Development Program ("SED"), administered by the Mississippi Business Finance Corporation ("MBFC"), is a program designed for the purpose of making loans to qualified private companies ("Borrower"), in order to finance the location or expansion of projects, a…

The loan cannot be used to refinance existing debt, (except for Eligible Costs of the Project incurred subsequent to the date of inducement such as a construction loan), and shall not exceed ninety percent (90%) of the fair market value of the real and/or personal property acquir…

To evidence each loan, MBFC, a Servicing Trustee, and the Borrower will enter into a loan agreement ("Loan Agreement") under which the Borrower will agree to make payments in such amounts, in the manner and at such times as MBFC shall determine which payment shall be sufficient t…

A financial institution ("Financial Institution") issuing a letter of credit must be approved by MBFC. The letter of credit must be an irrevocable direct pay letter of credit in an amount of one hundred three percent (103%) of the loan plus two hundred ten (210) days interest the…

The annual cost of the letter of credit shall not exceed two percent (2%) of the outstanding principal balance of the loan plus two hundred ten (210) days interest. If a letter of credit is not renewed upon expiration, MBFC shall draw upon the letter of credit for full payment of…

The Financial Institution issuing the letter of credit will enter into a reimbursement agreement ("LOC Agreement") with the Borrower whereunder the Borrower will agree, among other things, to repay the Financial Institution for any amounts it has advanced and other costs associat…

As a prerequisite to the LOC Agreement, the Borrower may be required to provide the Financial Institution the following: A. Certain positive and/or negative financial covenants; B. Grant liens or security interests in assets of the Borrower or its affiliates or stockholders; C. P…

SED Program documents may be obtained from MBFC. Three (3) copies of the completed application, along with the non-refundable application fee, must be filed by the Borrower with the MBFC staff in order to initiate the review process. Other documents which must accompany the appli…

Upon approval of the application by the staff, the Borrower will be informed of the date of presentation of the Project to the MBFC Board of Directors (the "Board"). The staff recommendation will be in the form of an inducement resolution outlining the scope of the Project. The B…

It should be noted, however, that under the terms of the Indemnity Letter, neither the State nor MBFC has any obligation, financial or otherwise, to any Borrower or other person for the failure of the State to issue, sell, or deliver its Bonds. Notes 6 Miss. Code. R. 1-14.18 Miss…

The Borrower will be required to pay to MBFC, concurrently with the submission of the application, a nonrefundable application fee in the amount of five hundred dollars ($500). The Borrower may also expect to pay a processing fee to the issuer of the letter of credit in such amou…

Small community is defined as any county, city, or town with a population of 50,000 or less and any area within five (5) miles of such town or city, determined according to the most recent Federal Decennial Census. Notes 6 Miss. Code. R. 1-14.2 Miss. Code Ann. § 57-71-1 et. seq. …

Closing costs include the cost of legal services, financial advisor fees, or other professional services employed by MBFC in reviewing or closing the loan and in relation to the State's issuance of Bonds which is estimated to be three percent (3 %) of the loan amount. Prior to th…

Annual fees are composed of: A. MIBFC Servicing Fee, which equals one-eighth (1/8) of one percent (1 %) of the outstanding principal balance of the loan, will be collected annually on the principal payment due date. The Servicing Trustee will invoice each Borrower for this fee. B…

All loan and mortgage documents shall be executed and delivered prior to disbursement of any SED funds. Notes 6 Miss. Code. R. 1-14.22 Miss. Code Ann. § 57-71-1 et. seq. (Rev. 2008)

MBFC will release loan funds on a reimbursement basis for Eligible Costs of the Project as incurred. Funds will be released periodically upon receipt of documentation in support thereof from the Borrower or delivery of a certificate of completion of the Borrower. Requests for SED…

A loan may be assigned and assumed by a different Borrower upon the transfer or conveyance of a Project, provided that, (a) the new Borrower assumes all of the obligations of the assigning Borrower under the Loan Agreement and all other applicable documents; (b) the new Borrower …

These guidelines may be amended by MBFC at any time. MBFC, in its discretion, may temporarily waive any requirement of these guidelines to the extent that the result of such waiver is to promote the public purposes of the Act and is not prohibited by State or federal laws. Notes …

In order to qualify for a loan under SED, the Borrower must meet the following requirements: A. The assistance must be requested by a private company located or to be located within the State which is an agricultural, aquacultural, horticultural, industrial, manufacturing, or res…

In order to be considered eligible for assistance, a Project must: A. Be located in a small community within the State; (i). (NOTE: Twenty percent (20%) of the total program funding may be used in communities which do not fall within the definition of small community.); B. Be app…

No portion of the proceeds of the loan may be used to provide working capital to the Borrower. Notes 6 Miss. Code. R. 1-14.5 Miss. Code Ann. § 57-71-1 et. seq. (Rev. 2008)

The maximum amount of an SED loan, when added to all capital expenditures of the Borrower and certain facility users and related persons made in the small community in which the Project is located, cannot exceed $10,000,000, during the period commencing three (3) years prior to t…

Under State and federal laws, the proceeds of a loan may be used by a Borrower to finance the following ("Eligible Costs"): A. The acquisition of raw land to the extent of twenty-five percent (25 %) of the loan proceeds; B. Acquisition, construction, rehabilitation, improvement, …

The SED program gives all financial institutions in Mississippi meeting MBFC criteria an opportunity to issue letters of credit to support local economic development efforts. Financial institutions will be required to furnish year-end statements for the past three (3) years and i…

The proceeds from the issuance of Bonds will be loaned to the Borrower to be applied to the payment of Eligible Costs of the Project. Such loan made by MBFC will not exceed two million dollars ($2,000,000) in the aggregate to any one Borrower, and the term shall not exceed fiftee…

The Mississippi Port Revitalization Revolving Loan Program ("Port Loan Program"), administered by the Mississippi Development Authority ("MDA") is designed for making loans to state, county, or municipal port authorities ("Local Sponsors") for the improvement of port facilities t…

Local Sponsors who fail to meet repayment obligations shall cause all or part of the Local Sponsor's Governing Authority's sales tax allocation and/or homestead exemption reimbursement to be withheld or shall be subject to such other penalties as MDA may prescribe. Notes 6 Miss. …

A Loan Agreement and Promissory Note ("Loan Documents") will be executed between the Local Sponsor, the Governing Authority, and MDA. The Loan Documents are required for disbursement of funds and cannot be executed until all required conditions in these guidelines have been met. …

The State will release loan funds on a reimbursement basis for approved eligible costs of the project as incurred. The Local Sponsor shall certify to MDA during construction that the expenses were incurred and were in accordance with the plans approved by MDA. Funds will be relea…

Loans made under the Port Loan Program are subject to audit by the State Authority of Audit. Notes 6 Miss. Code. R. 1-15.13 Miss. Code Ann. § 57-61-41 (Rev. 2008). Amended 6/3/2021

These guidelines may be amended by MDA at anytime. MDA, in its discretion, may temporarily waive any requirement of the guidelines to the extent that the result of such waiver is to promote the public purpose of the Act and is not prohibited by State Law. Notes 6 Miss. Code. R. 1…

Local Sponsors and/or Project contractors are required to ensure compliance with the Mississippi Employment Protection Act ("MEPA"), Miss. Code. Ann. § 71-11-3 et seq., and must ensure that the Local Sponsor and/or Project contractors register and participate in the status verifi…

Local Sponsors considered to be eligible applicants are state, county, and municipal ports authorized to operate in the State. In order to obtain assistance under the Port Loan Program, a Local Sponsor's governing authority ("Governing Authority") must submit an application to MD…

Projects which are eligible for assistance must be directly related to the port facility and are limited to construction, expansion, improvements, rehabilitation, or repair of: A. Dock and channel sites to include dredging; B. Drainage systems; C. Energy facilities (power generat…

Loan funds may not be used for working capital by the port facility, nor to provide facilities for utilization by a gambling vessel. Notes 6 Miss. Code. R. 1-15.4 Miss. Code Ann. § 57-61-41 (Rev. 2008). Amended 6/3/2021

The application to be submitted by a Local Sponsor must include: A. The purpose of the proposed loan including a list of eligible items and the cost of each; B. The estimated cost of the total project, a description of the Local Sponsor's investment in the project, and all public…

Four (4) copies of the application must be submitted to MDA. MDA will evaluate the application and the Water Resources Council Committee's recommendation to determine if the project meets the program criteria and what terms and conditions the loan should bear. Notes 6 Miss. Code.…

The maximum amount, which may be loaned from Port Loan Funds to finance any one project, is $1,000,000. Port Loan Funds may be used for one hundred percent (100%) project financing. The maximum term will be for up to ten (10) years with an interest rate of one percent (1%) per an…

The principal and interest will be paid on an annual basis and will be used to fund future loans under the Port Loan Program. Notes 6 Miss. Code. R. 1-15.8 Miss. Code Ann. § 57-61-1 (Rev. 2008). Amended 6/3/2021

If applicable, MDA may require a lien on the improvements made at a port for the benefit of a private company. The private company must be willing to grant a lien or to provide collateral (e.g., a letter of credit, corporate or personnel guarantees) in an amount and manner to be …