The Missouri Development Finance Board on Wednesday announced a new $5 million relief program that aims to help smaller municipalities that have experienced financial strains due to the coronavirus. The program is designed for towns with 25,000 or fewer occupants.
Part of the Governor’s Show Me Strong recovery plan, the program will give communities access to working capital loans to help make up for revenue lost during the pandemic.
“Missouri’s local governments have played a major role in providing aid to Missourians and assisting with economic recovery efforts despite major budget shortfalls,” Gov. Mike Parson said in a press release. “This loan program will provide the support these organizations need to continue serving their communities during this critical time in our state.”
There are a few stipulations on the way that these loans can be used. Municipalities must only use them to replace tax, fee or other governmental revenue that has not been received but would have been prior to the pandemic.
Loan amounts range from $50,000 to $300,000, with no interest during the first year that they are borrowed. Applications for the program are due by Aug. 31.