Company Name

Federal Empowerment Zone Benefits

www.stlouisezone.org/ezone2004.html  

• Called the Greater STL Regional Empowerment Zone
• St. Louis’ period (Urban Round II) lasts from 12/31/1998 – 12/31/2009
• Provides financial (grants / bonds / leveraged investment) and technical assistance for

1. community development
2. business & workforce development
3. commercial & industrial development.

• One of these bonds financed $95 million for the Convention Center Hotel in December, 2000. Volume cap is $130 million through 12/31/2009.

Federal Historic Tax Credits

www.cr.nps.gov/hps/tps/tax/brochure1.htm  

• Organized jointly beneath National Parks Service (acting on behalf of US Dept. of Interior) & IRS (acting on behalf of US Dept. of Treasury.)
• Both entities work with each State’s Historic Preservation Officer (SHPO.)
• In Missouri, the SHPO is organized under the Dept. of Natural Resources, State Parks division.
• Allows for a 20% tax credit for a certified rehab of a certified historic structure ($1 of tax credit reduces income tax owed by $1 up to 20% of amount spent.)
• Can be combined with the Missouri Historic Tax Credit

New Market Tax Credits

• Organized beneath US Dept. of Treasury
• Is one of 4 CDFI (Community Development Financial Institutions) Fund programs.
• Investors provide capital to a certified CDE (Community Development Entity) This CDE spends this money in low-income communities to help finance community projects, stimulate economic growth and create jobs. In exchange, an investor receives a federal income or “new market” tax credit from the CDE. This supply of NMTC totals $15 billion over its term from 2001-2007.
• In St. Louis, the St. Louis Development Corporation (SLDC) was granted a $52 million NMTC regional allocation but other entities within the region and nationally also have allocations available that can be applied to projects in Downtown St. Louis.

SBA 504 Loans

• Organized beneath the U.S. Small Business Administration
• Provides growing businesses with long-term fixed-rate project financing for major fixed assets (such as land, buildings, machinery and equipment.)
• Financing is made up of 3 components: Private bank loan in a first-lien position (50% project costs) Community Development Company (CDC) loan in a subordinate-lien position (35-40%) and an applicant’s personal equity (10-15%.)
• For meeting SBA guidelines, the SBA guarantees borrower repayment to the CDC. .St. Louis’ CDC is SLDC.

SBA 7A Loans

• Organized beneath the U.S. Small Business Administration
• Provides growing businesses with project financing for fixed assets (such as land, buildings, machinery and equipment), working capital and debt refinancing.
• Lenders are commercial banks who participate in the 7A Program who seek the SBA to guaranty a certain percentage of the bank’s loan.
• SBA will guaranty between 75% -85% of the bank’s loan to the borrower, if it is made according to SBA criteria.