PROGRAM GUIDELINES
Purpose: Provide low interest financing for public infrastructure projects that will improve local facilities, address health and safety concerns, assist with the physical and economic growth of local communities, and support State of Missouri and local priorities for job creation, economic development, and governmental services. MIDOC loans are generally used to supplement other sources of financing for an infrastructure project, and an applicant must illustrate why the Board’s financing is necessary to the project.
Eligible Uses of Funds: Eligible activities may include, but are not limited to upgrades to facilities (including engineering, design and construction inspection) owned and operated by a governmental entity providing service to the general public, as well as public infrastructure improvements such as those in the construction/repair/demolition of roads, sidewalks, bridges, water and sewer system, among others owned/to be owned by a municipality, county, or other political subdivision. Land acquisition and improvements for industrial sites may also be considered eligible activities under this program. Funds may be utilized by private enterprises to include for profit entities however, the application must be submitted and sponsored by the applicable political subdivision within the jurisdiction of the project. Priority activities are infrastructure improvements necessary to correct deficiencies or provide for growth. Loan funds may not be used to replace funds previously obligated for a project or fund an applicant’s administration or operating costs for the project.
Funding Limits: The minimum loan amount is $100,000. The maximum loan amount is $3,000,000 or such other amount as the Board may approve in its sole discretion. The entire amount of debt involved in the project may affect the maximum loan amount.
Loan Requirements: The term of the loan may be from 3 to 20 years. The interest rate will be determined at the time of application, but applicants should expect this rate to track the 10-year treasury. Borrowers at or below a $1,000,000 loan amount will be charged a $2,500 application fee. Borrowers exceeding a $1,000,000 loan amount will be charged a $5,000 application fee. Borrowers should expect to pay the Board’s attorney fees for drafting documentation of the transaction. The amount of such attorney’s fees will vary based on the size and complexity of the transaction and are payable upon closing. It is anticipated that the expected amount of such fees will be communicated to you during the pre-application meeting. These amounts are payable from the loan proceeds. The loan shall be secured by the purchase of revenue and/or general obligation bonds, a promissory note, lease agreement, or annual appropriation pledge obligation, as determined by the Board and the applicant. Level debt service payments should be anticipated beginning within a year of loan closing except for priorities at the sole discretion of the Board.
Application Criteria: A pre-application meeting with MDFB staff is required prior to submitting an application for consideration. Applications received without a meeting will not be considered complete. Please submit the following information for review. All attachments must be included in order to be considered complete.
- Form A – Project Identification
- Form B – Project Summary
- Form C – Project Narratives
- Form D – Certification of Applicant
- Preliminary engineering report and cost estimates.
- Applicant’s current financial statement, not less than 90 days old.
- Applicant’s latest annual audited financial statements.
- Project map indicating the specific location of the proposed public facility improvements. The map should show as much detail as possible.
- Sources and Uses as well as documentation of all other funding commitments.
Timing: MIDOC applications are reviewed by MDFB staff and input is gained from a member(s) of any partnering state and federal agencies to ensure the application complies with their recommendations when applicable.
Upon completion of a satisfactory review, MDFB staff may then recommend the application for final approval by the Board. The MDFB will schedule the application for consideration at one of its regularly scheduled monthly meetings.
Additional Information: If you’re interested in exploring the Disaster Recovery program then please click the link below to learn more as there are more specific eligibility requirements for that program. For additional information or questions, contact:
Missouri Development Finance Board
P.O. Box 567
221 Bolivar Street, Suite 300
Jefferson City, MO 65102
Phone: (573) 751-8479/ Fax: (573) 526-4418
Attn: Austin Albert, Project Analyst and Asset Manager
Email:
austin.albert.mdfb@ded.mo.gov
