MDFB approves low-interest microloan program

The Missouri Development Finance Board has approved a $2 million small-business microloan program created by Gov. Jay Nixon in January.

The MDFB voted to approve the loan program, which garnered initial approval March 24, at its regular meeting Tuesday, according to a news release from Nixon's office.

"Today's vote will provide many small Missouri businesses with much needed resources, as it creates a pool of funds that will help those businesses thrive and jumpstart our economy," Nixon said in the release.

On his first full day in office, Nixon issued an executive order that instructed the state Department of Economic Development and MDFB to establish a program that would provide small businesses access to low-interest loans to help them through rough economic conditions.

The MDFB will now begin the process of accepting and reviewing applications from Missouri's smallest businesses. Details about the application period and review timeline were unavailable, and MDFB Executive Director Bob Miserez did not immediately return a phone call.

DED spokesman John Fougere recently provided Springfield Business Journal with the proposed structure of the microloan program.

Fougere said low-interest loans up to $25,000 would be funded through the one-time, upfront grant from the MDFB. DED has recommended a 3 percent interest rate on loans that would have to be paid back within 10 years.

Fougere said the program would target Missouri-owned businesses that are located entirely in the Show-Me State. Eligible businesses would have five or fewer employees, including the owner, he said.