For Borrowers

For Borrowers

Financing Your Business is Mo-Kan’s Business

Mo-Kan has a variety of loan products that are designed to fit your needs. In many cases, a lending institution is regulated by thousands of policies that may limit their flexibility to meet your requirements. These limitations may relate to the loan term, amount, interest rate or other factors. Mo-Kan may be able to assist you and your lender by providing gap financing. With Mo-Kan financing part of your project, you may qualify for a lower down payment, better interest rate or a better loan term. Mo-Kan’s programs are designed not only to fit your needs, but also the requirements of your lender.  


Benefits to the Borrower include:

Lower down payments

May finance up to 90 percent of the project costs

Low interest rates

Longer financing terms (keeps more cash available for working capital)

Fixed interest rates for the life of the loan


Variety of loan uses:

Real estate

Building purchase

Building construction

Equipment

Inventory

Working capital



SBA 504 Loan Program
The SBA’s 504 loan program is the cornerstone of MKDI’s efforts to provide financial assistance to area entrepreneurs. The 504 loan can be used to finance a new business start-up, to expand a current business, or to purchase an existing business.


• Loan amounts ranging from $25,000 to $5,500,000
• Fixed Asset financing only: Real Estate, Building purchase or construction, and/or Equipment
• Below market Interest Rates
• 10- or 20-year term available
• No balloon payments
• Fixed Interest Rate for the life of the loan
• Available in Missouri and Kansas


SBA 7(a) Loan Program
The SBA 7(a) Guarantee program stems private sector lending by providing lending institutions additional security for qualifying loans. Depending on the size of the loan, a 75% or 85% guarantee is provided to the lender through the 7(a) program. The loan to the small business is provided by a bank of choice. The bank is responsible for setting the terms and rate. However, SBA sets a ceiling on the rates and has a maximum term limit for each use of loan proceeds, which in turn is beneficial to the needs of the small business/entrepreneur. For most of 2009 and 2010, the guarantee was temporarily raised to 90% to further aid lenders and small business during tough economic times; however, this temporary increase is expected to end December 31, 2010. Mo-Kan participates in the 7(a) program by providing technical assistance to the business/entrepreneur and packaging of the guaranty application.

• Guarantee provided to the bank financing your loan need: provides additional security for your bank and your business
• No balloon payments
• Reasonable term and rate of interest
• Available in Missouri and Kansas


Mo-Kan Revolving Loan Fund
Since 1990, Mo-Kan has provided gap financing for small businesses through its locally operated and managed RLF program. The RLF was originally funded through the federal Economic Development Administration (EDA) and local funds. Since its inception, this program has been able to loan out over $3 million, six times the original investment. In addition to the monies loaned directly from the RLF, the fund has leveraged over $14.5 million from private sector lenders and small business owners.

• Loan amounts ranging from $20,000 to $200,000
• Variety of loan uses: Real Estate, Building purchase or construction, Equipment, Inventory, and Working Capital
• Below market Interest Rates
• Terms up to 10 years
• No balloon payments
• Fixed Interest Rate for the life of the loan
• Available in Missouri and Kansas

RBEG Revolving Loan Fund

(RBEG RLF)
Mo-Kan Regional Council was awarded a Rural Business Enterprise Grant (RBEG) from USDA in FY 2010 to create a microloan fund available to small businesses located in rural areas. The loan proceeds are available to small and emerging private business enterprises located within rural populations in the Missouri counties of Andrew, Buchanan, Clinton, and DeKalb (populations of 50,000 or less).


• Loan Amounts $2,500 - $30,000
• Loan Uses Equipment, Inventory, Working Capital, Refinance
• Loan Terms 1-5 years depending on use and cash flow needs of the business
• Below Market Rates, Typically 4% - 6%

What Mo-Kan needs from you:

Personal financial statement – form provided (dated within the past 45 days)

Three most recent years of business income tax returns

Three years prior business financial statements, or for a start-up business your business plan

Three most recent years of personal income tax returns

Personal history statement – form provided (for all owners)

Personal resume (for all owners and management)

Copy of buy/sell agreement or copy of lease agreement

Cost documents — bids or estimates for items to be purchased


What you can expect to receive from Mo-Kan:

Full support, from the business plan through the loan process and closing

A below-market interest rate

Fixed interest rate financing

First-rate customer service

And most importantly, financing for your project