New relief program for Missouri local governments

The Missouri Development Finance Board has announced the new Small Communities Operating Capital Loan Relief Program for Missouri incorporated municipalities under 25,000 in population, according to a Wednesday news release from the Missouri Department of Economic Development

The program will allow $5 million to be dispersed to communities dealing with the challenges associated with COVID-19, the release said.

“Missouri’s local governments have played a major role in providing aid to Missourians and assisting with economic recovery efforts despite major budget shortfalls,” Governor Mike Parson said. “This loan program will provide the support these organizations need to continue serving their communities during this critical time in our state.”

Part of the Governor’s Show Me Strong Recovery plan, the grant program is designed to provide Missouri communities access to an interim working capital operating loan to address projected fund shortfalls due to COVID-19, according to the release.

Loans from this program must be used to replace tax, fees, or other governmental revenues that have been lost due to COVID-19 and loans range from a minimum of $50,000 to a $300,000 maximum with a 0% interest rate in the first year, the release said.

Applications for the Small Communities Operating Capital Loan Relief Program are due by August 31, 2020.