Mississippi legislature asked to revise SteelCorr loan

Mississippi legislature asked to revise SteelCorr loan

The State of Mississippi may revise its funding agreement with SteelCorr, who plans to build a new plant in Lowndes County. The Barbour administration has submitted a request that the state loan the steelmaker $60 million instead of the $75 million the state agreed to provide last March after SteelCorr announced plans to build the Mississippi plant. Under the terms of the new agreement, which will be given to state lawmakers in today’s special session, an additional $94 million will be added to the project to further strengthen the state’s position. It also adds a stipulation that half of any management bonuses will be escrowed until the $60 million is repaid to the state. The new loan terms will also allow direct payment to lenders. All parties have signed the agreement, but legislative approval is necessary to move forward. “With this Memorandum of Understanding, we'll be in a better position to protect the interest of the state and support SteelCorr's needs at the same time,” said Leland Speed, executive director of the Mississippi Development Authority. In addition to the loan, the state has offered $25 million for infrastructure at the site. The company would still get an additional $10 million matching loan if the costs for site improvements exceed $25 million. The county has already purchased the 1’400 acres near the Golden Triangle Regional Airport for the SteelCorr site. If Legislature approves the agreement, the project could get the go-ahead as soon as this week.