A consortium of 22 local banks has created a risk lending pool to provide for-profit business finance for projects too risky for conventional financing. Eligible businesses must be located in St. Louis City or County, must have a positive net worth, must be unable to secure adequate financing from the bank or SBA and must demonstrate a significant public purpose such as job creation, minority business development or export expansion. Funds may be used for working capital, inventory, machinery and equipment and in some cases real estate.

From $50,000 to $200,000 in project funding is available. These riskier loans will pay a premium for Business Fund financing. The SLBF loans will be collateralized to the fullest extent possible and personal guarantees are required for all owners of at least 20% of the financed business. Interest rate for Business Fund loans will be 2% to 3% over the prime rate and borrowers will pay 5% per annum on the outstanding balance. Business Fund loans will typically be repaid within 5 years. Borrower must be able to provide at least a 10% equity injection. The Board of the Business Development Fund must approve a complete application. Contacting the Business Development Division of the SLDC can start the application process.

This program is financed in part through grants from the U.S. Department of Housing and Urban Development and the Community Development Agency under the provisions of Title I of the Housing and Community Development Act of 1974, as amended (P.L. 93-383)