Agribusinesses in communities of less than 50,000 can apply for financing to cover costs associated with starting, acquiring, operating or expanding their business.
The Missouri Agricultural and Small Business Development Authority announced Thursday that its Agribusiness Revolving Loan Fund was awarded a $500,000 loan from USDA Rural Development to aid in economic improvements and job creation. As a result, MASBDA is recruiting loan applications for agribusinesses located in communities of less than 50,000 residents. Due to COVID-19, MASBDA is currently offering a fixed interest rate of 4%.
“The MASBDA Board of Directors is excited to see this critical loan fund continue for our agribusinesses during such a vital time.” MASBDA Executive Director Jill Wood said. “Agribusinesses are the backbone of our rural communities and we are hopeful this program can provide them a strategic opportunity to grow and thrive.”
Agribusinesses may qualify if they are value-added agriculture enterprises, agriculture support businesses, marketers or retailers of agricultural products, and businesses with emerging agricultural technology. The fund may provide financing for up to 75% of a project’s cost with a maximum loan of $112,000, depending on the borrower’s lien status, according to MASBDA.
Funds may be used for costs associated with starting, acquiring, operating or expanding a qualifying agribusiness, including but not limited to:
•Business construction, expansion, repair, modernization or development;
•Purchase of land, buildings, machinery, or supplies;
•Startup costs and working capital;
•Pollution control and abatement;
•Fees rendered by professional services as it relates to the business, including feasibility and marketing studies, legal fees, etc.
The Agribusiness Revolving Loan Fund was created in 2010 by a partnership between MASBDA and USDA through the USDA Intermediary Relending Program. The fund received additional support in 2015.
For more information on the Missouri Agricultural and Small Business Development Authority, visit MASBDA.com.