“Accessing Iowa’s Revolving Loan Funds”
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Transcript of “Accessing Iowa’s Revolving Loan Funds”
“Accessing Iowa’s Revolving Loan Funds”
Bruce Nuzum
Iowa Area Development Group
Community Vitality Center Presentation2005 Entrepreneurship AcademyOctober 21, 2005
CVC Entrepreneurship Academy
• Introduce Iowa Area Development Group
• Share IADG’s RLF Success Story
• Explore Iowa’s RLFs
Presentation Overview
The economic development organization for Iowa Rural Electric Cooperatives & associated Municipal Utilities.
Membership85 consumer owned utilities
IOWA AREA DEVELOPMENT GROUP
“IADG: Powerful Partnerships...
connecting people and resources
to grow businesses and communities
in Iowa!”
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.)
• 98 USDA awards ($28 million)
• 31 rural revolving loan funds
• 1,000 plus projects
IADG’s “RLF Success Story”
• USDA RD REDG Program• USDA RD IRP Program
31 RLFs totaling over $21 million– $214 million private investment– 5900+ jobs created / retained
Iowa’s Vast RLF Resources
Who Operates RLFs?• Councils of Government
www.iarcog.com/regions.htm
• City / County Development Organizations• Rural Electric Coops• Rural Telcos
Iowa Rural Development Council
RLF Survey & Electronic Data Base– Preliminary - 73 RLF Funds– Access, Balance, Term & Contact
Information ultimately available at:
www.iowarural.org
www.iowarural.org
www.iowarural.org
www.iowarural.org
RLF Borrowing Opportunities
Entrepreneur Responsibility• Know the RLF
• Strategy & Priorities• Loan Limits & Terms• Available Funds
• Prepare before you Apply• Business Plan• Cost Estimates• Other Sources of Funds
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
RLF Project Lending
• Manufacturing• Service• Value Added Agricultural• Retail• Medical• Community Facility
Eligible Uses of Funds
• Land Purchase
• Buildings
• Machinery & Equipment
• Infrastructure
Ineligible Uses of Funds
• Pre-development Costs• Refinancing• Production Agriculture*• Housing**
*Varies by fund
**Limits may apply
Loan Terms (Typical)
• Amounts: Minimum/Maximum $5,000 to $150,000• Rates: 0 to Prime - Ave 3 - 4%• Terms: Based on Collateral
Building 10 yearsReal Estate 10 yearsEquipment 5 to 7 years
• Other Funding: 20 - 50% Equity or other Sources
Iowa’s Vast RLF Resources
Who Operates RLFs?• Councils of Government
www.iarcog.com/regions.htm
• City / County Development Organizations• Rural Electric Coops• Rural Telcos
More Info At: www.iowarural.org