Banker touts corporation that helps small businesses obtain financing at chamber of commerce event

Helping small businesses obtain credit more easily is an essential ingredient for their expansion in Southeast Missouri, an area banker said Friday.

And with assistance from the Cape Girardeau Area Community Development Corp., Moe Sandfort, who serves as president of the organization and community bank president with Bank of Missouri, believes future growth of those businesses could become reality.

"The purpose of this is to pull together to help this community," Sandfort said during the monthly Cape Girardeau Area Chamber of Commerce First Friday Coffee. "If it's good for the community, we want to help."

Formed in late 2008, the corporation is a for-profit organization that provides financing for businesses that need more funds to finance a particular project. Gap financing fills that void by providing loans that make up the difference between the cost of the project and the amount of funds available to the business to accomplish its goal.

Ten banks purchased stock in the corporation, which is used to provide financing to qualifying small businesses. The organization's investment committee must review each proposal and, if at least two banks are willing to provide the financing, the small business would qualify for the loan.

While three businesses or entities have applied for the loans, the only one to qualify is the City of Cape Girardeau. Approved in spring 2009, the $125,000 loan funded by seven banks provided money for the construction of a 63-space, two-level parking lot at the corner of Broadway and Main Street. The parking lot that broke ground in July was completed in November.

For more information about how to obtain the loans, call 335-3312.

In addition to the presentation about the corporation, Jerry Lorberg of the Cape Girardeau County Industrial Development Authority said his organization approves bonds of $500,000 or more to bigger corporations. Among those is Saint Francis Medical Center for construction of its $84 million Heart Hospital and Cancer Institute. Scheduled to open by summer 2011, the facility will allow for provision of services in one building rather than multiple locations as is the case now.

Earlier in the program Chamber President and Chief Executive Officer John Mehner recognized Pete Poe, who was unable to be present to accept the Rush H. Limbaugh Award during the chamber's annual banquet Jan. 29. Poe, who serves as executive director of the Missouri Association of Fairs and Festivals, was attending the organization's convention that same night.

"From a personal standpoint, I've known the guy for 25-plus years," Mehner said. "Time and time again he was a go-to guy for any community event, any community project."

bblackwell@semissourian.com

388-3628

Pertinent addresses:

1267 N. Mount Auburn Road, Cape Girardeau, MO

211 Saint Francis Drive, Cape Girardeau, MO