“Access to Capital”
description
Transcript of “Access to Capital”
“Access to Capital”
Revolving Loan Fundsfor
Entrepreneurship
Rand M. Fisher
Iowa Area Development Group
Community Vitality Center PresentationEntrepreneurship AcademyOctober 20, 2004
CVC Entrepreneurship Academy
• Introduce Iowa Area Development Group• Share IADG’s “RLF Success Story”• Present RLF Borrowing Opportunities• Explore Iowa’s Vast RLF Resources
Presentation Overview
Introduce Iowa Area Development Group
• Membership
• Sponsors
• Mission
• Strategy
• Results
IOWA AREA DEVELOPMENT GROUP Community Foundation
“IADG: Powerful Partnerships...
connecting people and resources
to grow businesses and communities
in Iowa!”
The economic development organization for Iowa Rural Electric Cooperatives & associated Municipal Utilities.
Membership85 consumer owned utilities
Sponsors
Mission
Creating & Sustaining An
Economic Development Culture
Among Member Utilities
Strategy
TRAINING
RESEARCH
T AE SC SH IN SI TC AA NL C E
MARKETING
Results
• 507% increase in C&I power sales
• 388% increase in C&I revenues
• 73 industrial parks (5,385 shovel ready acres)
• 56 speculative buildings (1.5 M sq. ft.)
• 84 USDA awards ($22.8 million)
• 28 rural revolving loan funds
• 1,000 plus projects
IADG’s “RLF Success Story”
• USDA REDG Program
• USDA IRP Program
• IADG Partner Participation
• IADG RLF Landing Statistics
USDA Grant for Revolving Loan Fund
RUS Grants to RLF$300,000 Max
REC Administered RLF $360,000
REC
REC Matches 20% with own funds $60,000 Max
IADG Partner Participation
• 51 REDG Awards $14,459,144
28 Revolving Loan Funds• 6 IRP Awards $3,450,000 • $3,754,328 of IADG Partner Match• 138 REDG & IRP Loans
$158 M Investment Leverage
4,270 Job Creation/Retention
RLF Borrowing Opportunities
• Eligible Applicants• Eligible Uses of Funds• Ineligible Uses of Funds• Loan Terms• RLF Project Lending
Eligible Applicants
• New or Expanding Private Businesses• Local Governments• Non-Profit Community Organizations
Eligible Uses of Funds
• Land Purchase• Buildings• Fixed Assets• Machinery & Equipment• Infrastructure
Ineligible Uses of Funds
• Pre-development Costs• Refinancing
Loan Terms (Typical)
• Amounts: Minimum/Maximum $5,000 to $150,000• Rates: 0 to Prime - Ave 4%• Terms: Based on Collateral
Building 10 yearsReal Estate 10 yearsEquipment 5 to 7 years
• Other Funding: 20% Debt or Equity
RLF Project Lending
• Manufacturing• Service• Agricultural• Retail• Medical• Community Facility
Iowa’s Vast RLF Resources
• Iowa Rural Development Council Survey
• Results• Electronic Data Base
IRDC Survey and Results
Preliminary Findings
• 73 RLF Funds• $19 M in Capital• Access, Balance, Term & Contact
Information ultimately available at:
www.iowarural.org