Urban Enterprise Loan

The Urban Enterprise Loan (UEL) Program is a State funded loan program focusing on assisting companies expanding in or relocating to the State-designated Enhanced Enterprise Zone of federally designated Enterprise Community areas.

Eligibility

• Borrowers must be for profit businesses with current employment of less than 100.
• Eligible program activities include financing fixed assets, machinery, equipment, furniture, or working capital. 
• Eligible projects must retain existing or create new jobs.  For every $20,000 in UEL funding there must be one job that is created or retained.  Job creation must occur within two years of the loan closing.

Benefits

• The UEL can lend up to 45% of project costs to a maximum loan amount of $100,000. UEL 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.

Typical Loan Structure

• 45% from bank financing secured by first security interest, 45% from UEL subordinated loan and 10% equity.
• The UEL has a low interest rate in the range of 5%. Typically, loan terms will be matched to bank terms.
• Loans require a First Source employment agreement with SLATE for referral of new employment positions. Approved projects are generally funded in 4 – 6 weeks after approval.

Contact:

St. Louis Minority Business Council

(314) 241-1143