MISSISSIPPI SMALL ENTERPRISE DEVELOPMENT PROGRAM

The issuance of State General Obligation Bonds provides funds for manufacturing and processing companies to finance fixed assets, including land, buildings, new machinery, and new equipment at below market interest rates for terms of up to fifteen years. Although a company may qualify for more than one loan under this program, the aggregate amount loaned to any company cannot exceed $2 million. Interest rates on these loans are equal to the net interest rate on the bonds issued by the State plus 1/8 of 1%. A proposed project must create a minimum of ten jobs, and loans cannot exceed 90% of the market value of the financed assets. Companies participating in the program will be required to obtain a letter of credit guaranteeing the loan.