1. Transforming Missouri’s Economy Grow Missouri Loan May 19, 2011 1

2. State Small Business Credit Initiative 2 $1.5 billion provided to states from US Dept. of Treasury. – Allocation based on unemployment, other demographics. Missouri’s allocation: $26.9 million. – $16.9 million for MO Technology Corporation “IDEA Funds”. Growth companies. – $10 million to DED Division of Business and Community Services for “Grow Missouri Loan”. Conventional companies.

3. Grow Missouri Loan Fund 3 Eligible: “Primary” companies. – Less than 500 existing employees. Limited to the lower of: – 10% of the project funding. – $3 million/project; or – $75,000 per new or retained job of the project. Ongoing review – no deadlines. Project has not yet started or funds spent.

4. Grow Missouri Loan Fund Key Advantages 4 The payments of P&I are deferred up to 3 years. 4 years for MBE or WBE. – Payments may be interest only for next 3 years. – Maximum term: 8 years. Collateral may be subordinated to the primary lender. In most cases, the primary lender will view this loan as equity, thereby increasing the credit ratios and cash flow to better qualify for the private loans.

5. Grow Missouri Loan Fund Key Advantages 5 Can be approved prior to a commitment of any other funding as a “carrot” to obtain the remaining 90% of project funding. – An approved applicant will have up to 120 days to obtain the remaining 90% of funding. – If they don’t, they can re-apply, but would be at the back of the line if the entire amount of funding has been committed.

6. Approval Criteria 6 Financial stability and creditworthiness of the company. – If a start-up, validity of the business plan. Credit history of the primary owners. The need for the loan in order to facilitate the private lending. The validity and reasonableness of the qualified company's revenue and cost projections. The quality of the company’s management. The amount of new equity the owners are contributing based on their available resources. The overall size and quality of the proposed project. The level of economic distress of the area.

7. Application, Guidelines & Contact Info 7 www.ded.mo.gov Matt Fischer matt.fischer@ded.mo.gov 573-522-2790