GROW ME STATE INITIATVE

 

Angel Tax Credit

State Angel Tax Credit programs help bridge the gap in equity funding for advanced technology startup businesses so they can reach their next level of growth.

How does it work?

  • Investors would be eligible to receive a 30% tax credit (40% in rural and distressed areas) for investing in a qualified small business. 
  • Investors would be required to hold their investments for at least three years.  The maximum amount eligible for the credit is $50,000 per investment and a total of $100,000 per investor
  • The program would have an initial annual cap of $5 million.



Proof of Concept Loan Program

The Proof of Concept program is designed to help advanced technology companies with high-growth potential reach their next stage of business funding.

How does it work?

  • Approximately 25 awards of $50,000 each ($1.25 million per year) would be available annually in the form of forgivable loans.
  • Some companies will fail, but most will succeed.  When they do, companies are required to repay the loan within five years, with a minimum repayment of two times the original amount of the loan.  These paybacks will be rolled back into the program for future awards, enabling the program to become self-funding.
  • Companies must also leverage one dollar of private investment for every dollar of state financial assistance.  
  • To be eligible companies must be classified as a small business and 50% of employees and assets must be located in Missouri.  Employee salaries must be 35-40% higher than the average county wage.
  • The paybacks will be rolled into the program for future awards, enabling the program to become self-funding.



Seed Capital Co-Investment Revolving Fund

The Seed Capital Revolving Fund is designed to help seed and early-stage advanced technology businesses in Missouri achieve their next level of growth.

How does it work?

  • A state revolving fund made up of $10 million annually would make up to 20 seed-stage investments per year, at an average size of $500,000 per investment. 
  • To attract professional fund managers and investors, the fund would need to receive appropriations for a minimum of five years. 
  • To be eligible, the seed-stage or start-up companies would be required to obtain a 50% match of private funds.  Such businesses would also be required to have at least 50% of their employees and assets located in Missouri. 
  • The funds may be used for a variety of activities depending on the company’s submitted business plan, including IP development, prototype creation, market studies, business operations, and securing a management team.

 

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