The Missouri Development Finance Board could vote Tuesday on a proposal that would offer loans to smaller cities who have experienced a sharp revenue decline as a result of the coronavirus. The St. Louis Post-Dispatch reports the $5 million plan would be limited to communities with a population under 25,000 people.
The program would allow cities to repay a loan with no interest in the first year. If the loan is extended, the interest rate would start at 2% and grow to 2.75% in the fourth and final year.
The newspaper says the cities would be required to certify that the loan is needed to prevent a disruption in essential government services due to the fallout of the coronavirus.
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