Venture capital funding:
Missouri offers a variety of methods of issuing tax-exempt and taxable bonds for industrial development. The Missouri Development Finance Board (MDFB) issues these bonds in any area of the state.
The Environmental Improvement and Energy Resources Authority provides low-interest bond financing for projects that would reduce, control, and prevent damage to the environment; and encourage research and development of alternative energy sources and facilities.
Municipalities, counties, and incorporated towns issue industrial development bonds for factories and plants in assembling, manufacturing, fabricating, and processing to aid job generation in new and expanding firms.
Planned Industrial Expansion authorities issue bonds in undeveloped and blighted areas to acquire property for clearance and to finance private development. Abatement from ad valorem property taxation for up to 25 years is also available.
Other bond-issuing authorities:
Cities and counties may create a Land Clearance for Redevelopment Authority to develop, construct, repair, or improve structures and facilities in blighted areas, and issue bonds for such purposes. Cities and counties may also create industrial development authorities to issue tax-exempt industrial development bonds. Special business districts can be established by a city for special improvements. The district may tax real property and businesses to fund these improvements, and it may issue bonds. Tax-increment financing commissions, created by a city or county, may initiate redevelopment progress in certain areas and issue bonds.
The Department of Economic Development (DED) may provide subordinated Action Fund loans to manufacturing companies when needed to complete a financing package. Loans can be used for machinery, equipment, and working capital as gap loans.
Other financing programs:
The Industrial Infrastructure Program provides grants to cities or counties that must develop essential public works to support a manufacturing company or other industry project.
The MDFB may provide a 50 percent tax credit to contributions received toward the development of infrastructure.
DED's Brownfield Redevelopment Program provides tax credits for up to 100 percent of the cost of remediation or demolition of contaminated and abandoned or underused properties. Loan and grant funds are also available to fund other capital improvement costs.
Through the Enhanced Enterprise Zone Program, eligible companies that locate in a zone can receive tax credits for up to 10 years. Tax credits are based on the state economic benefit, supported by the number of new jobs and new capital investment the project creates.
Customized industrial training:
DED's Customized Training Program assists new and expanding businesses in recruiting, screening, testing, training, and retraining workers. The New Jobs Bonds Program provides funds for classroom or on-the-job training paid for with employee withholding taxes.
Venture capital funding:
Missouri has certified six "CAPCO" venture capital firms to provide early-stage investments in growth companies. Through the New Enterprise Creation Act, Prolog Ventures LLC raised contributions and now manages the state's seed capital fund. The $34 million Prolog Capital fund actively invests in seed and early-stage investments in Missouri, targeting companies in the medical and other life science areas.
Missouri State Contact:
Missouri Department of Economic Development
P.O. Box 118
Jefferson City, MO 65102
(573) 751-9045 or (800) 523-1434
Incentive and tax information is provided to Area Development by each state's economic development or commerce agency for information purposes only and is subject to revision at any time by the state government. Please contact the state agency directly for full requirements and offerings.