MS HB882

Establishes the Renaissance Assistance Program to Initiate Development (RAPID) to provide loans to small businesses in conjunction with traditional bank lending, administered by a qualified nonprofit community development financial institution under oversight of the Department of Finance and Administration.

Creates the RAPID Revolving Loan Fund in the State Treasury with a $10,000,000 transfer from the Capital Expense Fund during fiscal year 2024; fund consists of legislative appropriations, federal funds, contributions, and other sources, with interest and repayments remaining in the fund.

Permits RAPID loan proceeds for permanent working capital, building purchases, land acquisition and construction, facility expansion, machinery and equipment, leasehold improvements, closing costs, and business acquisitions.

Requires borrowers to meet SBA small business guidelines; primary bank must provide at least 50% of total financing; RAPID loan capped at 50% of primary loan; minimum one job created or retained per $25,000 in RAPID funding; requires only personal guarantee with no collateral; limits each business to one RAPID loan.

Program administrator receives 5% administration fee and 3% technical assistance grant; beginning in year three, 3% of loan interest from borrower repayments splits between reinvesting in the revolving fund (1.5%) and technical assistance account (1.5%).