September 30, 2021
Hannibal, MO. – Corey Mehaffy, Executive Director of the Hannibal Regional Economic Development Council (HREDC) announced today that the Hannibal Industrial Development Corporation (HIDC) is seeking additional shareholders. 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.
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 is currently working to revise the program documents and provide a framework for the RLF moving forward.
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, newer shareholders like James and Jeanette Hill are hopeful that their contributions will be matched by other families and organizations in the HREDC Region.”
Dr. Jeanette Hill added, “We see investment in this fund as a great way to support local growth of new and current businesses and to help our community thrive”
Currently the RLF can provide up to 30% of the monies necessary for a project and has a maximum loan amount of $50,000.00. Eligible activities include the purchase of land, buildings, construction, equipment, working capital, inventory and machinery.
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 Corporation 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-corporation/
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.