MINORITY BUSINESS ENTERPRISE LOAN PROGRAM

This program is designed to make grants or loans to qualified entities to establish revolving loan funds to assist in financing minority economic development.  A listing of entities administering these revolving loan funds may be obtained from MDECD or the Oktibbeha County Economic Development Authority.

A minority business means a socially and economically disadvantaged small business organized for profit, performing a commercially useful function which is owned and controlled by one or more minorities, or a minority business which is certified by MBFC.  Socially and economically disadvantaged has the same meaning as described in the Small Business Act (15 U.S.C.S. Section 637a), and shall include women.

If the minority business is a proprietorship, the borrower must be a resident of the State.  If the business is a corporation or partnership, at least 50% of the owners must be residents.  In either case, ownership must be 60% minority.  The maximum MBFC loan amount to any one borrower is $250,000 or 25% of the total project cost, whichever is less.  Maximum terms are seven years for working capital, ten years for machinery and equipment, and fifteen years for land and buildings.   The maximum interest rate which may be charged of the MBFC portion of the loan is 2% above the Federal Reserve Discount Rate, and the minimum is 2% below.