Minority Business Enterprise Loan Program
The Mississippi Business Enterprise Loan Program, administered by the Mississippi Development Authority, combines state and private lending sources to assist new and existing minority businesses in gaining access to needed capital in the form of direct low-interest loans.
Eligibility
A minority business is a socially and economically disadvantaged small business concern organized for profit (as defined under the Small Business Act, 15 U.S.C.S, Section 637 [a]) and performing a commercially useful function. The business must have one or more minority or female owners with controlling interest. A business is required to obtain certification as a Minority Business Enterprise by the Minority Business Enterprise Division prior to consideration for the loan.
Minority businesses not eligible to participate in the program are; charitable institutions or nonprofit enterprises, newspapers, magazines, radio or television broadcasting companies or similar enterprises through which editorial opinions are expressed, or businesses engaged in lending directly or indirectly. Loan proceeds may not be used for debt consolidation purposes or to finance real estate held primarily for sale or investment.
Business Ownership
For the purpose of pursuing financing through the Minority Loan Fund, ownership must be at least 60 percent minority or female. Sole proprietors must be a resident of the state of Mississippi, and corporations and partnerships require that 50 percent of the owners be Mississippi residents.
The borrower must have at least 5 percent equity in the business (i.e., cash or tangible assets such as land, building, or equipment), must be credit worthy, demonstrate the ability to repay the loan, and must not be in default of any previous loans from the state or federal government.
Terms
The maximum MDA loan amount to any one borrower is $250,000 or 50 percent 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 charged on the MDA portion of the loan is 2 percent above the Federal Reserve discount rate, and the minimum is 2 percent below the discount rate.
This program is administered through Mississippi Planning and Development Districts (PDDs). For more information, contact the PDD in your area.
North Delta PDD: 662.561.4100
South Delta PDD: 662.378.3831
North Central PDD: 662.283.2675
Central MS PDD: 601.981.1511
Southwest MS PDD: 601.446.6044
Southern MS PDD: 228.868.2311
East Central PDD: 601.683.2007
Golden Triangle PDD: 662.324.7860
Three Rivers PDD: 662.489.2415
Northeast MS PDD: 662.728.6248
Select MPDD to view of map of the Development Districts.
For more information contact:Financial Resources Division
Telephone: 601.359.3552
Fax: 601.359.3619
financial@mississippi.org