Mississippi Administrative Code
Title 6 - Economic Development
Part 1 - Financial Resources
Chapter 6 - Farish Street Historic District Loan Program
Rule 6-1-6.3 - Requirements

FSLP proceeds are limited to the development of commercial and culturally significant property located in the District, to include new building construction and/or the rehabilitation of historic buildings. The proceeds of the loan may be used to pay costs incurred by such person or entities for acquisition; construction; demolition; design, engineering, architectural, consulting and other services; and other costs approved by the Mississippi Development Authority (MDA). Loan proceeds may not be used for the purchase of land or buildings unless a specific project is planned on that property. FSLP funds may be used to finance up to 90% of the total costs associated with the Project. The borrower must inject a minimum of 10% equity into the Project in the form of cash or tangible assets, which may be used to cover ineligible project costs. The interest rate to be charged is one-percent (1%) below the Federal Reserve Discount Rate. Should interest rates change from the date of loan commitment from CMPDD to the date of closing, the interest rate quoted in the commitment will prevail. The maximum repayment term for a loan cannot exceed 20 years and is based on the loan amount and the projected revenues from the investment property or cash flow of the business. If property is being leased, the term of the loan cannot exceed the term of the lease. Personal and/or corporate guaranties will be required as deemed appropriate by the CMPDD and MDA. Applicants must be creditworthy and demonstrate the ability to repay the loan. Applicants must be in compliance with all state and federal regulatory agencies and must not be in default on any previous debt or obligation to the State or Federal Government.

Senate Bill 3194, 1999 Regular Session, Section 2, as amended by Chapter 533 Laws of 2010.