September 28, 2022
Hannibal, MO. – Corey Mehaffy, Executive Director of the Hannibal Regional Economic Development Council (HREDC) announced today that HOMEBANK is the latest organization to purchase stock in the Hannibal Industrial Development Company (HIDC). Established in 1952, the HIDC Revolving Loan Fund is designed to provide gap financing to new or expanding businesses, which will induce participation from private lenders. Loans may also be utilized for retention efforts. Businesses located in Marion and Ralls Counties are eligible for loan assistance.
According to Mehaffy, as a part of the economic development efforts to support small businesses in Marion and Ralls Counties, area businesses and citizens have purchased stock in HIDC. Mehaffy added, “Those cash contributions are used to establish a Revolving Loan Fund (RLF) for gap financing. The HIDC disburses money in the form of loans at interest rates, which are at or below market rate to small businesses or to businesses that cannot otherwise borrow capital. As the loans are repaid, the grantee uses a portion of the interest earned to pay administrative expenses and adds remaining principal and interest repayments to the RLF’s capital base to make new loans.”
HIDC is currently comprised of over 100 shareholders with total cash reserves of over $200,000.00. The HIDC shareholders elect a Board of Directors to govern the organization. According to Mehaffy, a committee of the Board recently revised the program documents and provided a framework for the RLF moving forward.
In June of 2022, the Board of Directors of the HIDC approved a small business loan for a new farm-to-table butcher shop. Langhorne Meats and Provisions, Hannibal’s premier source for locally raised beef, lamb, pork and poultry, was approved for a loan to assist with planning and design services.
According to Langhorne owners Nikki Barr and Trevor Schultz, the company has purchased the building at 300 Broadway in downtown Hannibal and plans to revitalize the historic structure to create a high-end farm-to-table butcher shop.
Mehaffy added, “Langhorne Meats and Provisions is exactly the type of project HIDC was established to support. I regularly hear from residents in the region about the types of businesses they would like to see in our area, and I remind them that HIDC is the mechanism to help with attracting and supporting these small businesses.”
Mehaffy went on to say that many projects never move forward due to a gap in the financing stack. “Often, even with the help of family and friends, our entrepreneurs have a difficult time raising the capital needed for traditional lending. HIDC does not compete with our local lending institutions, but rather assists them by injecting private capital into the financing stack to get more deals to closing”, said Mehaffy.
Northeast Missouri Community Bank President Josh Wilson indicated that HOMEBANK recently purchased stock in the HIDC as a way to support local small business efforts. Wilson added, “As a locally owned bank for nearly 90 years, HOMEBANK has a vested interest in the growth of our community. We want to see current businesses expand and new entrepreneurs succeed. This Revolving Loan Fund may be the final piece of the puzzle for something great for the future of Northeast Missouri. We are proud to be a part of that.”
Currently the RLF has a maximum loan amount of $25,000.00. Eligible activities include the purchase of land, buildings, construction, equipment, working capital, inventory and machinery.
Mehaffy added that he is grateful to see so much renewed interest in HIDC. “We have been fortunate to see a number of new investors, like HOMEBANK, purchase stock in the HIDC RLF, and their contributions are already making a difference in our communities”, said Mehaffy.
For more information on how to invest in HIDC, please contact HREDC at (573) 221-1033 or via email at director@hredc.com.
The Hannibal Industrial Development Company administers the loan program by accepting applications, working closely with the HIDC Board of Directors, servicing loans, monitoring the progress of the program and reporting to the HIDC Shareholders. For more information, visit
https://hredc.com/resources/hannibal-industrial-development-company/
HREDC works to promote financial investment in Hannibal, and Marion and Ralls Counties. For more information on the organization, please visit their website at www.hredc.com
HIDC RLF Flyer