The Mississippi Business Finance Corporation is a public, non-profit organization whose goal is to channelize the resources of the state to finance businesses and industry. In the process it helps the state to gain competitive strength in the global market. The Mississippi Business Finance Corporation (MBFC) is led by 25 members who represent both the private and the public sector.
The Mississippi Business Finance Corporation offers a variety of programs catering to different business needs. Each of the programs are discussed under the following heads:
- Gulf Opportunity Zone Act of 2005
- This Act stimulates new investment in the gulf coast businesses. The final legislation has developed the Gulf Opportunity Zone from the states, which are affected.
- Industrial Development Revenue Bond Program (IRB)
- This program issues both taxable and tax exempt bonds and in the process reduces the interest costs of financing projects. In this form of public financing sales tax is exempted.
Training
- Mississippi Small Enterprise Development Program (SED)
- This loan scheme is focused on private companies that would generate employment and investment in the State. Funds under this program come from the issue of general obligation bonds by the State of Mississippi. This program provides tax exempt financing for the small projects. Banks, which qualify the MBFC criteria, have the option of issuing letters of credit in order to support these efforts. This program is very lucrative for projects, which are in search of loans of volume $4 million since rates of interest lie below the market rate. Sales tax exemptions are also provided by this scheme.
- Mississippi Rural Economic Development Assistance Program (RED)
- This program is aimed at augmenting projects that are financed by the IRB and the SED Programs. The companies that have qualified the eligibility criteria of the IRB and SED Programs are given income tax credits along with advalorem exemptions under the RED Program. The companies who are eligible to obtain the IRB include manufacturing facilities, processing facilities, certain warehouse and distribution centers, telecommunications and data processing company, multi state national or regional headquarters. The companies who receive SED are mainly manufacturers and processors. The credit amount received by a company depends on its project related debt service. The costs included in the annual debt service relate with the issuance of bonds, letters of credit, annual service fees, principal and interest payments.
- Mississippi Loan Guarantee Program
- This Program helps small businesses to obtain term finances by using loan guarantees. Due to this Program the lending institutions do not hesitate to loan out since the risk of default is hedged.
The Mississippi Business Finance Corporation has also formed Mississippi Development Bank.
The Mississippi Development Bank
The Mississippi Development Bank is an autonomous organization, which funds local government units. The local government units include any county, municipality, regional solid waste authority, county cooperative service, political subdivision etc. the main objective of the Mississippi Development Bank is to finance infrastructure and other public purposes from the proceeds of bonds.
To learn more about the Mississippi Business Finance Corporation sites to be viewed are msbusinessfinance.com, mississippi.org etc.