Loan Guarantee Fee Tax Credit Program

PURPOSE
Reduce the costs to small businesses in financing projects by providing tax credits for certain federal loan guarantee programs.

Authorization
Section 135.766, RSMo:
"An eligible small business, as defined in Section 44 of the Internal Revenue Code, shall be allowed a credit against the tax otherwise due pursuant to chapter 143, RSMo, not including sections 143.191 to 143.265, RSMo, in an amount equal to any amount paid by the eligible small business to the United States Small Business Administration as a guaranty fee pursuant to obtaining Small Business Administration guaranteed financing and to programs administered by the United States Department of Agriculture for rural development or farm service agencies." 

Eligible Areas
Statewide.

Eligible Applicants
A small business defined in Section 44 of the IRS code must (in the prior tax year) have gross receipts of less than $1 million; or if more than $1 million, less than 30 full time employees.

Program Beneifits/Eligible Uses
This tax credit can be applied to:
Ch. 143 – Income tax, excluding withholding tax
This credit has no special attributes and must be applied to tax liability for the year it was earned.

Funding Limits
There is no limit on the amount per business or total amount distributed annually.

Application Procedure
A business should submit an application to DED within one year from the date the loan is disbursed to the business.

Contact
Missouri Department of Economic Development
Division of Business and Community Services
Business & Community Finance Team
301 West High Street • Room 770 • P.O. Box 118
Jefferson City • MO • 65102
Phone: 573-751-4539 • Fax: 573-522-4322
E-mail: dedfin@ded.mo.gov • Web: www.MissouriDevelopment.org
SBA programs: www.sbaonline.sba.gov/financing/indexloans.html
USDA Business and Industry Guarantee: www.rurdev.usda.gov/rbs/busp/bprogs.htm