Oxford
and Lafayette County are committed to new and existing industry. This is
demonstrated by the favorable tax incentives and finance programs offered
locally and throughout the state of Mississippi. As an added advantage,
our local Economic Development office can assist you with public and private
sources for financing.
FINANCING
PROGRAMS
Programs
are administered by the Mississippi Business Finance Corporation (MBFC),
which is the financing arm of the Mississippi Department of Economic and
Community Development. MBFC is a non profit public corporation which blends
public and private capi tal at competitive rates.
I.
INDUSTRIAL DEVELOPMENT REVENUE BONDS
- Designed for manufactures
or processors who wish to finance land, buildings, fixtures, equipment
and machinery, with a maximum of $10,000,000 in capital expenditures
- Generally for 10-20
year period., public or private placement.
- Provides a full
sales tax exemption on eligible items purchased with bond proceeds.
Ad valorem tax exemption (except school tax) are also available and
initiated through the local political subdivision.
- Generally lowers
effective cost than private financing.
II.
MS SMALL ENTERPRISE DEVELOPMENT FINANCE PROGRAM (SED)
- Loans made to manufactures
in processors who will increase employment and investment in small communities.
- Minimum $200,000,
maximum $2,000,000 for land, buildings an equipment,
- create 10 jobs
minimum.
- Maximum term 20
years, letter of credit required.
- Generally lower
effective cost than private financing.
III.
THE SBA 504 LOAN PROGRAM
- Up to 90% of capital
required for new or expanding industry or business.
- Excludes working
capital.
- Used for land,
buildings, machinery, equipment and renovations.
- Up to 20 year fixed
rate on SBA portion.
IV.
LOAN GUARANTY PROGRAM
- Designed for start-up
or expansion of a small business, including fixed assets, working capital,
and start-up.
- Maximum loan is
$500,000.
- Maximum gurantee
of loan is 75% of loan not to exceed $375,000.
- Collateral required
to secure loan.
- Must be turned
down by two lenders prior to application.
V.
MS SMALL ENTERPRISE DEVELOPMENT FINANCE PROGRAM
- Loans made to manufactures
or processors who will increase employment and invest in small communities.
- Maximum of $2,000,000
fixed assets (land, buildings, and equipment) only, create 10 jobs minimum.
- Maximum term 20
years, letter of credit required.
VI.
OTHER
Several
Federal agencies from time to time have sources of money available on a
competitive basis. HUD, EDA, SBA, FmHA all can be considered in packaging
your loan though our development office. |
