CAPE GIRARDEAU, MO (KFVS) - A new group hopes to give Cape Girardeau's economy a shot in the arm.
The Cape Girardeau Area Community Development Corporation is made up of 10 area banks.
It's purpose is to help stimulate the local economy, giving financial help to small businesses.
"Ten financial institutions coming together to put this together is really pretty huge for our area," said Bill Vickery, director of the Small Business Development Center at the Southeast Innovation Center.
The corporation works by joining the banks together to provide more financing for small businesses, sharing the risk and closing the gap in financing.
It's something the director of the Vickery says will really help boost the economy.
"One of the major challenges for small businesses is obtaining that financing," Vickery said.
He knows it's a challenge for business owners to pull together all the resources needed to get off the ground.
"So anytime we can come up with an additional tool to help them. This is quite an opportunity," Vickery said.
That's why the group of 10 banks formed a corporation to share the risk of projects for small business owners looking to expand.
"Maybe a bank under a conventional system wouldn't be able to do that loan and it was thinly captialize by the borrower," said Moe Sandfort, the Community Development Corporation board president. "They need a little bit more capital to put into it and didn't have it, but the idea and the concept would have been good for our community."
So, who would the corporation help?
"It's the people that are wanting to do that new enterprise, form that new corporation, that want to build that new commercial venture," Sandfort said.
There are a few possible projects on the horizon to help fund like a parking garage in downtown Cape or redoing the facades on Broadway--all things to help provide jobs and stimulate the economy.
"Small business drives our economy," Vickery said. "Anything we can do to support small business or help them move forward is a positive for the entire area."
The Cape Girardeau Area Community Developmenht Corporation is looking for projects to fund.