Rule 6-1-1.3 - Financing Restrictions for the Job Protection Program Job Protection Program assistance maybe in the form of a grant, loan, or a loan and grant combination. However, the amount of grant, loan, or a loan and grant combination, shall not exceed fifty percent (50%) of the total cost of the project. The maximum grant amount is $200,000. The maximum loan amount is $800,000 while the minimum amount loaned is $200,000. The maximum grant and loan combination is $800,000. The term on the loan shall be ten (10) years maximum or the determined useful life of the project to be financed. The rate of interest will be based on the most recent twenty (20) year general obligation bond issued by the State. Other State finance programs, to include Community Development Block Grants, may not be used to finance the remaining cost of the project.
A. Conditions. An existing company that accepts a grant or loan shall not reduce employment by more than twenty percent (20%) through the use of the project for which the grant or loan is provided. The company must inject a minimum often percent (10%) equity into the project. The company must document to the satisfaction of MDA that it is an At-Risk Industry.B. Loan Repayments. Principal and interest payments will be due on a monthly basis, with a fixed amount to be paid over the life of the loan.C. Security. Each loan will be secured by a lien of such type that provides adequate security for MDA to recover its investment in case of default on the loan. Liens may be in the form of personal guarantees, liens on the equipment installed or security interest in other assets. It should be noted MDA will require a one percent (1%) good faith deposit on all projects. Individuals or entities with twenty percent (20%) or more ownership in the company will be required to provide personal guaranties and life insurance.Miss. Code Ann. § 57-9-1 (Rev. 2008)