LDC Commercial Loan

The St. Louis Local Development Co. (LDC) has the ability to provide direct, low interest, subordinated loans for working capital, equipment purchase, land and building acquisition, and construction or leasehold improvements.

Eligibility

  • The business must be located in the City of St. Louis and licensed to do business in the City. 
  • There must be at least one full time job created or retained for every $35,000 of LDC funds. 
  • Ineligible uses include speculative real estate ventures, franchise fees, and refinancing. 

Benefits

  • LDC loans can provide up to 30% of project costs to a maximum loan amount of $150,000.  These loans will be collateralized to the fullest extent possible and require the personal guarantees of all 20% or more owners.
  • LDC loan amounts are determined by the projected number of jobs to be created over a three year period. 
  • A typical loan structure is 60% funding from a private lender secured by a senior lien, 30% LDC funds, and 10% equity. 
  • LDC loans typically carry a low 4% interest rate fixed for the term of the loan and the maturity will generally match the term of the private loan. 

Requirements

  • Borrowers are required to enter into a First Source Employment Agreement with the St. Louis Agency on Training and Employment (SLATE) for referrals of new entry-level positions. 
  • Approval by the St. Louis Local Development Co. Board is required.  Approved projects are generally funded 4-6 weeks after approval.

Fees

  • A One Hundred Dollar ($100) non-refundable application fee is due at the time of application. 
  • Borrowers will be charged a maximum fee of 1% of the LDC loan amount due to the LDC at closing.
  • While the LDC does not charge legal fees, the borrower is expected to pay for all filing fees or costs related to appraisals, environmental surveys, and title work.

This program is funded in part through grants from the U.S. Department of Housing and Urban Development and the Community Development Agency of the City of St. Louis under the provisions of Title I of the Housing and Community Development Act of 1974, as amended (P.L. 93-383).

Ron Epps
Assistant Vice President Business Finance
(314) 615-8146
Email & full profile

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