ST. LOUIS —
Small construction contractors and suppliers in St. Louis can complete an eligibility questionnaire for MobilizeSTL, a $2.5 million bridge-loan program designed to cover early contract costs while firms wait through long payment cycles.
The St. Louis Development Corporation says the program will provide short-term financing to contractors and suppliers working for a major employer or participating in a construction project. The loans are planned through a partnership with Rise Community Development Financial Institution.
Published terms call for a 4% fixed interest rate, loan amounts of up to 50% of the underlying contract and terms ranging from three to 18 months, depending on the construction schedule. Borrowers would pay a 1% origination fee and related costs, with no application fee or prepayment penalty.
SLDC estimates closing could take 30 to 45 days after all required application materials are received. The agency stresses that the questionnaire is only an initial eligibility and readiness step. It does not provide a credit decision, reserve funding or guarantee acceptance.
The program is funded with federal Coronavirus State and Local Fiscal Recovery Funds passed through the city’s Community Development Administration. SLDC says it does not make the final lending decision.
For local contractors, the program targets a practical cash-flow problem: payroll, materials and mobilization costs can come due well before a project’s first 30-, 60- or 90-day payment arrives. Interested firms should review the requirements before completing the online questionnaire.
Source and questionnaire: St. Louis Development Corporation
