There are many financing programs available to businesses locating in Hinds County. Read below for a description of each of them. If you have any questions, please don't hesitate to contact Benjie Barham at 601.353.6056 or via e-mail.
The Mississippi Development Authority (MDA) Financial Resources Division administers a variety of incentive programs to help businesses obtain loans for development and expansion:
- Industrial Revenue Bonds Program (IRB). Administered by the Mississippi Business Finance Corporation (MBFC), these bonds reduce interest costs of financing projects for companies through the issuance of both taxable and tax-exempt bonds. Sales tax exemptions are granted for this type of public financing.
Most types of commercial businesses are eligible for IRB financing. Proceeds of the bond issue may be used for the acquisition and construction of real property, machinery and equipment, capitalized interest and limited bond issuance expenses.
- The Small Enterprise Development Bond (SED). These State General Obligation Bonds provide funds for manufacturing and processing companies to finance fixed assets (land, buildings, new machinery, new equipment) at below market interest rates. Although a company may qualify for more than one loan under the program, the aggregate amount loaned to any company cannot exceed $4 million. Interest rates on these loans are equal to the net interest rate on the bonds issued by the state plus a servicing fee. A project must create a minimum of ten jobs, and loans cannot exceed 90% of the market value of financed assets.
- Rural Economic Development Assistance (RED). This incentive is a companion to bond financing and allows eligible businesses to receive credits on Mississippi corporate income taxes. The credits are based on the amount of bond-related debt service and can be used to offset up to 80% of the state corporate income tax liability attributable to the project each year for the life of the bonds. Unused RED credits may be carried forward for three years. Qualifying businesses include:
- Manufacturers;
- Telecommunications companies, Data information and processing facilities, and distribution and warehouse facilities with 50 employees, or 20 employees and a minimum capital investment of $5,000,000;
- National or Regional Headquarters with 35 jobs and a minimum capital investment of $2,000,000; and
- Research and Development or technology intensive enterprises with a minimum of 10 employees earning at least 150% of the average state wage and having a minimum capital investment of $2,000,000.
- In instances where a company already has a presence in Mississippi and plans to expand its facility, a formula is used to determine what percentage of the income can be offset from the credits generated by debt service. The percentage is calculated using a three-factor ratio, with the new-to-existing jobs percentage double weighted against the new-to-existing assets percentage.
Click here for more information on these programs.
The Small Business Administration provides assistance to businesses through several programs, including the 7(a) Loan Guaranty Program, the Low Documentation Program, and SBA Express. For more information, please contact the Mississippi District Office at 601.965.4378 or visit www.sba.gov.
The Historically Underutilized Business Zone (HUBZones) program stimulates economic development and creates jobs by providing federal contracting preferences to small businesses in distressed areas.
The Mississippi Development Authority's Energy Division offers a low interest loan program for businesses to finance energy conserving capital improvements. Click here for more information or call 601.359.6600.
The City of Jackson Storefront Improvement Program offers a matching grant to businesses located in the designated Community Development Block Grant Area for improvements to business exteriors. Contact Jeffrey Virgil with the City of Jackson's Office of Economic Development at 601.960.1100.
www.city.jackson.ms.us
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