Interest Rate Subsidy Program

Purpose

The purpose of the Interest Rate Subsidy Program is to attract new investment and enhance or create jobs to the City of Mission and/or its extraterritorial jurisdiction (ETJ).

MEDA's Role

The Mission Economic Development Authority (MEDA) may provide interest rate subsidies to new or existing businesses with Mission and/or its ETJ.

Source of Fund

MEDA has appropriated funds from the 1/2 cent sales tax for Economic Development to subsidize interest rates on loans made by financial institutions.

Eligible Projects

A project may include the land, buildings, equipment, facility improvements and working capital of a commercial, manufacturing or industrial enterprise located in Mission and/or its ETJ.

Terms

• MEDA may subsidize interest rates on a loan made by a financial institution for an eligible project. The subsidy amount is determined on a case by case basis.
• The maximum loan amount that will be considered for an Interest Rate Subsidy is $250,000.
• The project should have a job to loan ratio of one new job per $20,000 invested for proposed capital investment over the agreed period of time.
• Full time employment (FTE) shall be defined as 32 hours for 50 weeks or 1600 hours annually per employee.
• Any business requesting assistance from MEDA based on the above criteria must be an end user and not a third party leasing facility to a business.
• No assistance will be given for speculative projects.
• All businesses will be required to submit their current financial statements, business plans/pro forma material, employment plan, and proof of project cost.
• Businesses will be required to produce a commercial, financial institution commitment letter suitable to MEDA's Commercial Development Committee.
• Businesses will be required to submit verification of employment to MEDA before the subsidy can be allocated.

Businesses will be required to produce verification that the financial institution loan is performing satisfactory before the subsidy can be allocated.

Process

An applicant interested in participating with this program should submit a commitment letter, a business plan, current financial and pro forma material, employment plan, and proof of project cost to MEDA. Your business will be expected to produce detailed employment records on a periodic basis for subsidy audit purposes. Additional information may be requested.

MEDA's Commercial Development Committee will review the project and will make a recommendation to the MEDA Board of Directors.

Disqualifying a Project

Projects are subject to being disqualified if the business does not hire the minimum number of employees as per terms of this subsidy and/or retain at least such minimum number of employees each year thereafter in which subsidies are available.