BUSINESS LOANS
GROW IOWA provides low-interest financing for business starts, expansions and other community development projects. We work in conjunction with local and regional banks to increase small business and industry lending by providing additional, flexible credit helping the borrower fit the bank's underwriting criteria.
Over half of Grow Iowa borrowers have started new business enterprises while another quarter have expanded currently operating business. Other projects have focused on the retention of area businesses and industrial development. Grow Iowa can finance most business and industry needs in the region with the exception of production agriculture.
FINANCING
- Up to 50% of the project can be financed through Grow Iowa (max. loan $250,000). Remaining project costs are most often financed through a commercial lending institution.
- Applicants must provide a portion of the project cost as equity through personal resources or grant funds.
- Loan terms up to 10 years, depending on project and collateral; Interest rate - variable, adjusted annually, 1% below prime, minimum of 4%, maximum of 2% above original interest rate.
APPLICANT ELIGBILITY
Individuals, cities, counties, cooperatives, businesses, non-profit and for-profit corporations are eligible to apply for financing - all applicants must have the authorization of a sponsoring agency, such as a county or regional development corporation, city, county or chamber of commerce.
- Business acquisition, construction, conversion, enlargement, repair, modernization or development costs.
- Purchase and development of land, building facilities, leases or material.
- Purchase of equipment, leasehold improvements, machinery or supplies.
- Start-up operating costs and working capital.
- Tourist facilities such as restaurants, hotels or recreation centers.
APPLICATION PROCEDURE
- Applicants must discuss their project with Grow Iowa prior to submitting an application to ensure eligibility.
- Applicants are encouraged to complete the application in conjunction with their local lender.
- Six copies of the completed application, attachments and a $150 application fee should be mailed to Grow Iowa.
- Loan applications will be reviewed by a regional loan committee within 15 business days. If approved, an additional 30-45 days may be required to gain USDA approval, prepare loan documentation and cut the final check if an environmental review is required by USDA.
- A one percent (1%) administrative management fee is charged at the loan closing.
DOWNLOAD APPLICATION
To download an application on to your computer click here.