St. Louis Offers New Loan Program for Small Business Owners

The St. Louis County Economic Council has launched a new loan program for small businesses. The program, called "Boost," will serve an alternative to SBA's 504 loan program.

In its initial phase, Boost will lend $5 million to small business owners...The money will be funded by a line of credit extended by PNC Bank to the St. Louis County Economic Council, said Rick Palank, senior vice president of the Economic Council, who developed the innovative program.

Boost will offer up to 90 percent financing and either floating or fixed interest rates tied to the London Interbank Offered Rate, known as LIBOR. Boost would lend a maximum of $500,000 to any one business.

The Boost loan program requires borrowers to put up 10 percent of the total loan. According to the St. Louis Business Journal, "Small businesses seeking Boost loans will get half their funding from their own bank, and the St. Louis County Economic Council would lend 40 percent. The loan term could extend to 20 years to construct or purchase a building, or 10 years on an equipment purchase."

Source: Rick Desloge. St. Louis Business Journal...St. Louis County Unveils New Business Loan Program...January 8, 2010.

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St. Louis Offers New Loan Program for Small Business Owners originally appeared on About.com Women in Business on Thursday, January 14th, 2010 at 09:48:02.

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