Loans

LOCAL LOANS

Fort Madison Revolving Loan Fund

The Fort Madison Revolving Loan Fund is used to make low interest loans up to $25,000 for gap financing to qualifying individuals, partnerships, or corporations that want to start a new business in Fort Madison. The fund is specifically targeted toward commercial and service sector proposals, and is administered through the Southeast Iowa Regional Planning Commission (SEIRPC). The city forged a public-private partnership with SEIRPC, the Fort Madison Chamber of Commerce and local banks to establish this fund. The Fund was capitalized with $200,000 from the city’s gaming revenues. The city’s investment has leveraged $800,000 in low interest loan money pledged by four different banks. Local banks are the primary lenders for the business start-ups. As loan payments are made, and monies are repaid to the pool, the fund revolves back out to other candidates for the program. Eligibility is based on the following:

  • Startup or expanding business in the city limits
  • Applicant must be creating or retaining jobs
  • Applicant must demonstrate the need for gap financing or local match funding
  • Applicant proposal will support and enhance the local economy

Financial Assistance:

  • Maximum loan award – $25,000
  • Cost per Job – $10,000
  • 5-7 year term on fixed asset loans
  • 10 year maximum on real property loans
  • Competitive interest rates (floor of 4%)
  • Loan closing fee of $250

Click here for the brochure.

Contact
Jeff Hanan, Assistant Director
Southeast Iowa Regional Planning Commission
211 N. Gear Ave Suite 100 West Burlington, Iowa 52655
Phone: (319) 753-5107

Regional Revolving Loan Fund

The SEIRPC RLF was funded by a $600,000 loan from USDA and a $150,000 local match from each of the four member counties and cities. For-profit businesses from all four counties (excluding businesses located in the city limits of Burlington, Iowa) are eligible to apply for loans up to $125,000 at a competitive interest rate. The regional fund targets manufacturers and has a goal of creating or retaining one job for each $10,000 lent.

Contact
Jeff Hanan, Assistant Director
Southeast Iowa Regional Planning Commission
211 N. Gear Ave Suite 100 West Burlington, Iowa 52655
Phone: (319) 753-5107
www.seirpc.com

 

Economic Development Administration Revolving Loan Fund

The EDA RLF was funded by a $450,000 grant from EDA and a $150,000 local match. Businesses from all four counties are eligible to apply for loans up to $125,000 at a competitive interest rate. The primary objective of the program is private sector job creation and capital formation for expansion or start-up projects and has a goal of creating or retaining one job for each $10,000 lent.

Contact
Southeast Iowa Regional Planning Commission
211 N. Gear Ave Suite100 West Burlington, Iowa 52655
Phone: (319) 753-5107
www.seirpc.com

 

Geode RC&D/USDA Revolving Loan Program

Established by Geode RC&D and the USDA in 2001, the program focuses on small and emerging rural businesses to overcome gaps in local capital markets. Loans are available in amounts ranging from $5,000 to $20,000, with a term of 3 to 7 years. The annual interest rate will begin at 4%; however this may fluctuate with changes in the prime rate. The loan is available only to rural areas with a population under 5,000. The program focuses on enterprises in rural areas that enhance or protect natural resources, job creation, value-added agriculture enterprises, and enterprises that serve the under-employed, elderly and disabled.

Contact
Contact Geode RC&D for an application at 319-752-6395 or geode@geodercd.org.
http://geodercd.org/

 

STATE LOANS

Community Economic Betterment Account

This program is structured to provide financial assistance to businesses and industries that require such assistance in order to create new job opportunities. Retail businesses are ineligible for this program. CEBA funds are intended to be only a small piece of the financial package with the majority of the investment coming from private and local public resources. For more information call IDED at 515-242-4795 or 800-532-1215 or www.iowalifechanging.com for application.

Demonstration Fund

Provides grants and loans to accelerate commercialization of products by companies in three targeted industry clusters — Bioscience, Advanced Manufacturing and Information technology. The purpose of the fund is to encourage commercialization of innovation thereby fostering competitive, profitable companies that create high paying jobs and wealth in Iowa. Funding is approved by the IDED Board of Directors. Go to www.iowalifechanging.com for application.

Iowa Finance Authority HOME Program

Renovation of existing rental units, or new construction units only. Residential units only. Interest rates as low as 0% with variable compliance period (15-30 years). Debt/Service ratio must be 1:2. The review process is approximately 6 weeks. online training will be mandatory for applicants. Property owners are highly encouraged to apply as the developer. Units renovated must be at least 5, with a maximum of 15. Maximum total amount spent can be $900,000 with a maximum of $60,000 per unit.

Contact
Carla Pope, Director of Affordable Rental Production
2015 Grand AvenueDes Moines, Iowa 50312
(515) 725-4900
Email: Carla.pope@iowa.gov
Website: http://www.iowafinanceauthority.gov/en/for_
developers_managers/affordable_rental_production/home_program/

Iowa Finance Authority Multifamly Housing Loan Program


The Iowa Finance Authority’s Multifamily Housing Loan Program seeks to preserve the existing supply of affordable rental units at risk of being lost and to foster the production of new affordable units in Iowa. Nonprofit and for-profit entities are eligible to apply for assistance under the program and must show demonstrated market need for the proposed units. Projects must be in a good location and cannot be functionally obsolete in terms of unit mix, amenities, parking and other property considerations. Eligible projects must have at least five units. IFA may require a change of management or general partner and may refer applicants to other funding options, such as tax-exempt bonds or Low-Income Housing Tax Credits, when appropriate.

Contact
Derek Folden, Underwriter
2015 Grand Avenue
Des Moines, Iowa 50312
(515) 725-4900
Derek.folden@iowa.gov
Website:http://www.iowafinanceauthority.gov/en/for_developers_managers/
affordable_rental_production/multifamily_housing_loan_program/

 

Iowa Finance Authority Multifamily GREEN Loan Program

Benefits The Multifamily GREEN Loan Program provides low-cost financing to affordable housing developers and management companies for energy efficiency upgrade costs. The program may assist with eligible costs identified through the Iowa Multifamily GREEN initiative.
Eligibility Affordable housing developers, partnerships and investors may be eligible for the assistance.

Eligible Costs: The loans may be used for improvements such as:

  • Automated energy management systems
  • Furnaces
  • Heating and air conditioning
  • Insulation
  • Lighting systems
  • Other approved energy efficiency enhancements

Program Details

  • Rate: 3-5%
  • Loan Size: $5,000-$50,000
  • Loan Term: three to seven years
  • Commitment fee: 0.5%

Contact
Tim Morlan
2015 Grand Avenue
Des Moines, Iowa
50312(515) 725-4900
Tim.morlan@iowa.gov
Website: http://www.iowafinanceauthority.gov/en/for_developers_managers/
affordable_rental_production/multifamily_green_loan_program/

 

Iowa MicroLoan

This program offers small loans and technical assistance grants for small businesses with no more than 10 full time employees. Iowa MicroLoan offers Iowa residents loans of $5,000 up to $50,000 for start-up, expansion or refinancing of micro businesses. Applicants must have applied for a loan at a traditional credit source and have been denied before this opportunity is available. The maximum loan term is six years. For more information call (515) 212-0182 or visit www.iowamicroloan.org.

 

 

Iowa Self-Employment (ISE)

This program allows qualified individuals with disabilities to establish, acquire, or expand a small business by providing technical and financial assistance. Technical Assistance funds of up to $10,000 may be used to pay for any specific business-related consulting service, such as developing a feasibility study or business plan, or accounting and legal services. Financial Assistance funds of up to $10,000 may be used to purchase equipment, supplies, rent or other start-up, expansion or acquisition costs identified in an approved business plan. Expenditures for financial assistance cannot exceed $10,000 and applicants must provide 50% of the of the equipment or working capital needed to start, expand or acquire a business by providing a dollar-for dollar match of the financial assistance requested. To be eligible for the program, applicants must be active clients of the Iowa Department of Education, Iowa Vocational Rehabilitation Services, or the Iowa Department for the Blind. To learn more, (515) 281-4211 or DVRS.Webmaster@iowa.gov

 

Iowa Small Business Loan Program


The Iowa Small Business (ISBL) Loan Program provides loans to eligible small businesses to promote the creation and retention of jobs in Iowa’s economy and to assist businesses to be more competitive. The Iowa Legislature appropriated $5 million to the Iowa Department of Economic Development for the ISBL program, which was created by 2010 Iowa Acts, Senate File 2389, sections 41 through 44. The ISB Loan Program aids Iowa entrepreneurs and Iowa small businesses in their efforts to:

1) upgrade or modernize equipment

2) realize additional efficiencies in their supply chains

3) improve their distribution and transportation margins

4) reduce facility costs through increased energy efficiency 5) and leverage other sources of business financing.

Eligibility
Iowa small businesses that are located in Iowa, are owned, operated and actively managed by an Iowa resident, and have 35 or fewer full-time equivalent employees are eligible to apply to the ISB Loan Program. Eligible businesses must also have a business plan and receive assistance from an Iowa Small Business Development Center or another qualified public or nonprofit business consultant approved by the Iowa Department of Economic Development (Link to IDED List).

Additionally, the small business must not be in violation of environmental or worker safety laws (this requirement does not apply to businesses that have been incorporated for less than two years), must only employ workers legally authorized to work in the state, and can not engage in the production, depiction or distribution of obscene material to be eligible for the ISB Loan Program. Businesses that are in bankruptcy or imminently contemplating filing for bankruptcy are not eligible for the Program.

Loan Terms
In addition to the terms and conditions provided in each ISB Loan Agreement, loans made under the program will have the following terms:

  • Loans made under the program may be for $2,500 to $50,000
  • The interest rates for loans made under the program will be 3.9% for direct loans & 2.0% for loans co-financed with a local lender.
  • Recipients must provide collateral to secure the entire loan value
  • The term of any loan made under the program shall not exceed five years

Contact

http://www.isbloan.org/how/index.cfm
Phone: (515)401-8290
Email: jyates@iowamicroloan.org
Iowa Targeted Small Business Program

This financial assistance program is available to women, minorities and disabled individuals who own or are starting a business. This IDED program offers:

  • A low interest loan, up to $50,000, at an interest rate of 0-5%, to be repaid in monthly installments over a five to seven year period. The first installment can be deferred for three months for a start-up business and one month for an existing business.
  • Loan guarantees up to $50,000. Loan guarantees can cover up to 80% of a loan obtained from a bank or other conventional lender. The interest rate is at the discretion of the lender.
  • In limited cases, an equity grant, to be used to leverage other financing, SBA or conventional, in amounts up to $50,000.

 

In order to apply for financing, the business has to be certified as a Targeted Small Business first through the Iowa Department of Inspections and Appeals,
www.state.ia.us/government/dia/index.html.The second step is to complete TSB application, found at the IDED website, www.iowalifechanging.com.

 

Main Street Mortgage Loan Program

A partnership between Main Street Iowa, the Iowa Finance Authority (IFA) and the Federal Home Loan Bank of Des Moines, the Main Street Mortgage Loan program provides funds for lending to Main Street communities in Iowa. IFA, as an associate member of the Federal Home Loan Bank of Des Moines, can borrow from the Federal Home Loan Bank at favorable rates and loan that money to aid community development projects. Main Street Iowa has identified a need for mortgage lending for multifamily housing and commercial development in Main Street communities. Specifically, there is a need for downtown infill and rehabilitation of upper floor housing in mixed-use buildings.

Eligibility
Loans are made for the rehabilitation of upper floor housing or commercial properties or for new construction on infill lots in downtown areas of communities that participate in the Main Street Iowa program.

Projects must complement Main Street Iowa’s vision of a revitalized downtown. Main Street Iowa first considers all applications for design appropriateness. If approved, IFA then reviews the applications for underwriting purposes. IFA awards loans on an ongoing basis.

Loan amounts
The maximum loan amount is $250,000 per commercial project. The minimum loan amount is $50,000.

Interest rates and terms
Loans for this program may have terms between 3 and 15 years with up to a 30-year amortization. The interest rate is fixed at 1.35 percent above IFA’s cost of funds for the proposed loan term.

Debt Coverage Ratio
1.25 : 1, inclusive

Loan Criteria
The borrower must show community support evidenced by local contributing effort. The borrower must also invest a minimum of 10 percent of the project cost and must supply requested financial information to show that there is a reasonable assurance that the loan will be repaid.

Rehabilitation/Construction Standards
Plans must meet all code requirements. Main Street Iowa will review all building plans and specifications.

Origination Fee
The origination fee is 1 percent at closing. The terms and conditions detailed above are a broad outline of the Main Street Revitalization Loan Program and are not all-inclusive. IFA, with guidance from Main Street Iowa, will determine the eligible projects, credit worthiness, collateral and repayment terms. Terms and conditions are subject to change.

Contact:
Fort Madison Main Street
319-372-5471
Website: http://www.iowalifechanging.com/community/mainstreetiowa/.

 

Value Added Processes/Products Financial Assistance Program

This program is to encourage the increased utilization of agricultural commodities produced in the state of Iowa. The two components to the program relate to: 1. operations which are involved in the development of new and innovative products or processes related to agriculture and 2. renewable fuel productions facilities with a priority given to those renewable fuel facilities which produce a co-product which directly supports livestock production operations. For more information call IDED at 515-242-4795 or 800-532-1215 or www.iowalifechanging.com for application.

 

Wellmark Community Ventures Fund

Applicant Company must be an Iowa based for-profit company. Typical funding will provide $10,000 to $100,000 in convertible debt financing. The loan term is 5 years at a rate of 7% interest. Interest is payable at the end of 5 years. A request may be made to extend the loan for an additional two years. For application or more information visit www.jpec.org/wellmark\

FEDERAL LOANS

The SBA does not make direct loans to small business.  The SBA sets the guidelines for loans which are made by its partners and guarantees that these loans will be repaid, thus eliminating some of the risk for the lending partners. Please note that the Small Business Administration (SBA) does not provide any grant programs for small businesses. Financial assistance is given through loan programs only.

SBA 7(A) Guarantee Loan Program
The 7(A) Loan Program is the SBA’s primary business loan program.  The SBA offers loans from $100,000 to $2 million.  Terms of loans:

  • Real Estate – up to 90%, up to 25 years, fully amortizing
  • Business Acquisition – up to 85%,up to 10 years, fully amortizing
  • Debt Refinance – up to 100%, 7 to 25 years fully amortizing depending on the use of loan proceeds
  • Equipment, Inventory and Working Capital – up to 100%, 7 to 10 years fully amortizing

SBA guaranty fees range from 2% to 3.75% depending on the size of the loan.  Additional fees for loan packaging, appraisal, environmental, title/escrow, construction, etc. may apply.

SBA 504 Loan Program

This SBA program offers loans from $500,000 to $8 million for financing the acquisition or construction of owner occupied properties and equipment.

Terms of Loans:

  • Bank first trust deed – 25 Years, fully amortizing, competitive fixed and floating rates available
  • SBA second trust deed – 20 Years, fully amortizing, fixed rates

Loan Advance Rates:

  • General purpose real estate – up to 90%
  • Special purpose real estate – up to 85%

Loan Costs:

  • 1.5% of the first trust deed loan
  • Additional fees for SBA/CDC second trust deed loan
  • Loan packaging, appraisal, environmental, title/escrow, construction fees vary depending on size of project, etc.

SBA Patriot Express Loan

The Patriot Express Loan is for veterans and their spouse wanting to establish or expand a small business.  Loans have a 7-year term.  For loans of $5,000 to $25,000 at Prime +4.75% and loans of $26,000 to $50,000 at prime + 3.75%.  The loans are unsecured and no collateral is required.  The SBA guarantee fee of 2% of the guaranteed portion (85%) of the loan will be deducted from the loan proceeds.  Loan payments are automatically drafted from the business checking account at borrowers established institution.

For more information on loans offered through the SBA visit the Web site www.sba.gov or Borrego Springs Bank at http://www.borregospringsbank.com/

USDA Business and Industry Loan Guarantee Program

The USDA guarantees loans to eligible lenders to businesses to benefit rural areas, up to 80 percent of the original loan amount. These loans can be guaranteed in cities up to 50,000 population with priority to applicants in rural communities of 25,000 or less. Visit www.rurdev.usda.gov