April 21, 2022
Hannibal, MO. – Corey Mehaffy, Executive Director of the Hannibal Regional Economic Development Council (HREDC) announced today that the Board of Directors of the Hannibal Industrial Development Company (HIDC) is currently seeking additional investment for the HIDC’s Revolving Loan Fund (RLF).
In February of 2022, the HIDC Board of Directors officially adopted a new Revolving Loan Fund Program in support of small business. Established in 1952, HIDC 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.
The purpose of the new RLF Program to attract and assist in the startup of new businesses in Marion and Ralls County. Additionally, the loan will provide funding for small growth projects as well as gap financing for larger projects. The goal of the RLF is to assist in economic development through providing access to funds for clients who do not fit the traditional model of private bank loans.
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.”
Mehaffy added, “I am grateful for the foresight of the original shareholders to establish this RLF. In 1952, $200,000.00 was a significant fund balance. Given the current need in our area, it is our goal to grow the fund to over $500,000.00 and beyond in the coming months. In fact, Mehaffy is currently meeting with a number of businesses and individuals in the area that are interested in purchasing stock in HIDC to help grow the RFL.
Recent efforts to attract new investment have produced good results with additional stock purchases and future commitments of over $40,000.00.
Hannibal Regional President and CEO Todd Ahrens discussed why his Board of Directors supports this new program for small businesses. Ahrens said, “Hannibal Regional is very appreciative and supportive of current economic development efforts in our region. HREDC’s efforts to expand and grow opportunities for business start-up and expansion has a positive impact on our region as a whole. We feel it is important for our region and various stakeholders to work together to promote economic development because by doing so we will create a stronger, more vibrant community.”
HNB President John Zimmer talked about the importance of this type of gap financing for small businesses. Zimmer added, “There are people that have solid business plans but just don’t have the startup capital to get their projects off the ground. This Revolving Loan Fund could be the tool that helps bring their business plan to a reality which ultimately will benefit the community. I encourage other businesses and individuals to invest in this fund as it is vitally important that we support and encourage new business to improve the quality of life and provide jobs within the community.”
Deborah Thornburg, President of P & D Electric, Inc., discussed the ripple effect that new business development can have on the existing businesses in the area. Thornburg said, “As owner of an established small business, I can only imagine the struggle a new small business owner would encounter. When our business was started in 1985 I believe the Hannibal Industrial Development Company would have served a great benefit. I would like to think by supporting the organization, we could help new small business overcome certain hurdles associated with funding.”
Eligible applicants include for profit businesses existing as a legal business entity including but not limited to sole proprietorships, limited liability companies, S corporations, or C corporations.
Loans of up to $25,000 are available and the loan terms are negotiable depending on applicant need, capability and current market rates.
For more information on how to invest in HIDC, please contact HREDC at (573) 221-1033 or via email at firstname.lastname@example.org.
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.