This looks promising for those looking for additional capital
OFFICE OF THE GOVERNOR
Governor Chet Culver « Lt. Governor Patty Judge
FOR IMMEDIATE RELEASE
August 2, 2010
Kay Snyder, Iowa Department of Economic Development
Angel Albert, Governor’s Office
Governor Culver Announces Launch of Iowa Small Business Loan Program
$5 million in Small Business Loans available
DES MOINES – Governor Chet Culver today announced the launch of the Iowa Small Business Loan Program. This new program will provide access to $5 million of low interest loans to assist entrepreneurs and small businesses to grow in Iowa.
“I am pleased to announce the launch of the Iowa Small Business Loan Program as another resource to support the growth of young companies within the state. These resources will allow them to create new financial opportunities for themselves, their employees and the communities in which they operate,” Culver said. “These businesses will create new jobs, make our economy stronger and help move Iowa forward.”
The Iowa Small Business Loan (ISBL) Program will begin accepting loan applications today. The $5 million program was created by the Iowa Legislature during the 2010 session to promote the creation and retention of jobs in Iowa’s economy by providing financing to eligible small businesses.
The ISBL Program aids Iowa entrepreneurs and 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, and (5) leverage other sources of business financing.
Iowa small businesses can access loans ranging from $2,500 to $50,000 at an interest rate of 3.9 percent. If the ISBL Program loan is combined with financing from a local lender the interest rate drops to just 2 percent, if the co-financing is for at least one-third of the total loan package amount.
The Iowa Department of Economic Development has contracted with the Iowa Foundation for Microenterprise and Community Vitality to assist with the credit review process and provide recommendations regarding loan decisions to IDED. IDED will make final decisions regarding approval or disapproval of all loan applications. The total time between application submission and funding of approved loans is estimated to be four to six weeks.
To be eligible for the ISBL Program, the small business must be located in Iowa; must be owned, operated, and actively managed by an Iowa resident; and have 35 or fewer full-time equivalent employees. 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 IDED. Additional restrictions regarding environmental, worker safety, and labor regulations also apply. Interested businesses should contact their local Small Business Development Center (www.iowasbdc.org) to confirm eligibility and start the application process.
Please visit www.ISBLoan.org for more information. If you have questions regarding the program, contact Jason Yates with the Iowa Foundation for Microenterprise and Community Vitality at 515-401-8290 or firstname.lastname@example.org.