Boost Loan Program
St. Louis Small Business Monthly
February 1, 2010
by Julia Paulus
The St. Louis County Economic Council (SLCEC) is offering a new loan program for businesses, BOOST, which is an alternative to the U.S. Small Business Administration's (SBA's) 504 loan program.
BOOST is similar to the 504 program: The borrower's bank lends 50% of the total project cost, the SLCEC lends up to 40% and the borrower injects only 10%.
But Rick Palank, senior vice president of the SLCEC, says BOOST is different from the 504 loan program in a couple of major ways. "The program will help a business that wants 90% financing but doesn't meet SBA eligibility rules and/or doesn't want a 20-year fixed rate because of the prepayment penalty for the first 10 years," he says.
Palank says that the BOOST program's eligibility criteria are similar to those of the SBA 504 loan program but that the SLCEC does not have to follow the same rules. "We will have a great deal of flexibility in waiving criteria if we think it is appropriate to do so," he says.
Any business located in St. Louis County can apply, and once the program is launched, a brochure and application will be available on the SLCEC website. Visit www.slcec.com for more information.
