BUILD (Business Use Incentives for Large-Scale Development)

BUILD (Business Use Incentives for Large-Scale Development)

Runs a bond-backed Missouri manufacturing expansion program giving qualifying projects below-market financing rates.

The Business Use Incentives for Large-Scale Development (BUILD) program is a Missouri Department of Economic Development instrument that provides below-market-rate financing for large-scale manufacturing facility development through the issuance of tax-exempt revenue bonds. Because the bonds carry a federal tax exemption on interest income for bondholders, the resulting cost of capital is substantially below conventional market rates for industrial borrowers. BUILD is designed specifically for capital-intensive manufacturing projects where traditional commercial lending carries prohibitive costs.

Eligible applicants are for-profit manufacturing companies operating or relocating to Missouri. Nonprofits and non-manufacturing entities are not eligible. There are no published minimum or maximum loan sizes in the public program listing, though the program's mandate for "large-scale" development implies projects requiring tens of millions of dollars in capital. The bonds are issued through the Missouri Development Finance Board (MDFB) or local government entities acting as conduit issuers, and proceeds are lent to the private company under a loan agreement that mirrors the bond terms.

Applications are submitted to Missouri DED and proceed through MDFB's review and bond allocation process. Applicants must demonstrate the manufacturing project's economic development impact, particularly job creation and capital investment in Missouri. The program is typically used in combination with other Missouri incentives such as Missouri Works tax credits or the Missouri Certified Sites program. Borrowers bear responsibility for bond repayment; the state does not provide a guarantee. Companies should engage bond counsel early, as the allocation and issuance process involves multiple regulatory and legislative steps before closing.