St. Louis County launches small business loan program
ST. LOUIS POST-DISPATCH
January 9, 2010
by Tim Logan
The St. Louis County Economic Council on Friday unveiled a new program designed to help small businesses access credit.
The so-called BOOST loan program will provide an alternative to the Small Business Administration's popular 504 loans and is geared toward small firms that want to expand in St. Louis County.
The county is partnering with PNC Bank to provide $5 million in lending -- in loans of up to $500,000 -- to buy or build buildings, land, equipment or machinery in St. Louis County. The program is similar to SBA 504 loans that require borrowers to get half of their financing through a bank. But it carries no income requirements or prepayment penalties, and borrowers can choose either a fixed or floating interest rate.
"With the credit crisis and small-business owners having difficulty in obtaining financing, BOOST comes at an opportune time," said County Executive Charlie A. Dooley. "It provides borrowers with a viable option that's not hampered by bottlenecks, red tape and high costs."
It will be administered by the County Economic Council.
