Federal

Federal Empowerment Zone Benefits
www.stlouisezone.org/ezone2004.html

Called the Greater STL Regional Empowerment Zone
St. Louis’ period (Urban Round II) lasts from 12/31/1998 – 12/31/2009
Provides financial (grants / bonds / leveraged investment) and technical assistance for

One of these bonds financed $95 million for the Convention Center Hotel in December, 2000. Volume cap is $130 million through 12/31/2009.

Organized jointly beneath National Parks Service (acting on behalf of US Dept. of Interior) & IRS (acting on behalf of US Dept. of Treasury.)
Both entities work with each State’s Historic Preservation Officer (SHPO.)
In Missouri, the SHPO is organized under the Dept. of Natural Resources, State Parks division.
Allows for a 20% tax credit for a certified rehab of a certified historic structure ($1 of tax credit reduces income tax owed by $1 up to 20% of amount spent.)
Can be combined with the Missouri Historic Tax Credit

Organized beneath US Dept. of Treasury
Is one of 4 CDFI (Community Development Financial Institutions) Fund programs.
Investors provide capital to a certified CDE (Community Development Entity) This CDE spends this money in low-income communities to help finance community projects, stimulate economic growth and create jobs. In exchange, an investor receives a federal income or “new market” tax credit from the CDE. This supply of NMTC totals $15 billion over its term from 2001-2007.
In St. Louis, the St. Louis Development Corporation (SLDC) was granted a $52 million NMTC regional allocation but other entities within the region and nationally also have allocations available that can be applied to projects in Downtown St. Louis.

Organized beneath the U.S. Small Business Administration
Provides growing businesses with long-term fixed-rate project financing for major fixed assets (such as land, buildings, machinery and equipment.)
Financing is made up of 3 components: Private bank loan in a first-lien position (50% project costs) Community Development Company (CDC) loan in a subordinate-lien position (35-40%) and an applicant’s personal equity (10-15%.)
For meeting SBA guidelines, the SBA guarantees borrower repayment to the CDC. .St. Louis’ CDC is SLDC.

Organized beneath the U.S. Small Business Administration
Provides growing businesses with project financing for fixed assets (such as land, buildings, machinery and equipment), working capital and debt refinancing.
Lenders are commercial banks who participate in the 7A Program who seek the SBA to guaranty a certain percentage of the bank’s loan.
SBA will guaranty between 75% -85% of the bank’s loan to the borrower, if it is made according to SBA criteria.

Downtown St. Louis Partnership