O’Brien County

1. O’Brien County Revolving Loan Fund Investing in our County’s Future

2. Who are we • 8 communities in NW Iowa • Archer, Calumet, Hartley, Paullina, Primghar, and Sutherland, Sheldon, Sanborn • Population – 15,000

3. Where we are

4. Establishing the fund • When - In 1989 OCEDC started planning the O'Brien County Revolving Loan Fund • Purpose - to further the public purpose of economic development • Outcome - the creation of new jobs and income, or the retention of existing jobs and income that would otherwise be lost.

5. Initial Funding • Initial funding for the revolving loan fund was through contributions made from each of the 8 communities in O’Brien County and the O’Brien County Board of Supervisors. Contributions were established on a per capita source based on a 1980 consensus

6. Beginning Balance • 4 years after the initial plan was set in motion, the RLF was first operational in April of 1993 with a beginning fund balance of $60,711.91

7. Review Process • Applications to the IRP program will be reviewed by the Revolving Loan Fund Program committee facilitated by the O’Brien County Economic Development Corporation. This committee is comprised of 6 financial lenders within the county:

8. Lending Limits • The RLF fund is for GAP Financing • Total O’Brien County RLF funds requested should not exceed 33.333% of the total projects costs with a maximum loan per project of $100,000

9. RLF uses or purposes Revolving Loan funds may be used for the following: • Land Purchases • Building Purchases • Building Construction • Machinery Purchases • Equipment Purchases • Any other uses deemed appropriate by the RL Committee

10. Terms • Typically the review committee approves a 10 year amortization with a 5 year balloon. • Applicants can request interest only payments for the first 3-6 months, typically during the construction phase.

11. Collateral Requirements • O’Brien County maintains at least a second position on realty, personal guarantee or intangibles in an amount equal to the loan.

12. Value of loan position • Hotel • Lender had 1st • OCEDC had 2nd • Lender borrowed more money and took 3rd • Bank Forecloses • OCEDC received our payoff in full

13. Application Costs: • A $50.00 application fee payable to the O’Brien County Economic Development Corporation, must accompany the completed application. • The applicant must pay any loan documentation costs. • A 1% loan application fee will be due upon closing.

14. Current Portfolio Balance • This fund has increased to a current loan portfolio in excess of $500,000.00.

15. Funding Sources • The O’Brien County Board of Supervisors annually contribute to the Revolving Loan Fund in the amount of $50,000.00

16. Exhausted Funds • In 2005 our RLF account was depleted and we saw the need to seek additional funding. An IRP application to the USDA was submitted and approved in the amount of $500,000.00

17. IRP Award January 2006

18. IRP Balance • IRP funds were received October 2006. Out of this funding we have already loaned out $300,000 and currently we are waiting for 2 applications to be submitted to the RLF Committee.

19. Bogenrief Studio’s • Sutherland, Iowa • Stained Glass Artist

20. DK Plastics • Archer, Iowa • Plastic manufacturer

21. Deluxe Feeds • Deluxe Feeds • Midwest EnRG Flakes • Sheldon, Iowa

22. Pizza Ranch • Sheldon, Iowa

23. Hartley, Iowa Independent publisher specializing in innovative agriculture and commodities topics. Hammersmark Books

24. ND Millwerk Salvage & Sales • Paullina Iowa • Vintage pieces from the 1890's thru the 1930's

25. Sanborn, Iowa Hartog Elevator

26. Success Rate • OCEDC has assisted 14 applicants • Funded a total of $633,797.38 • 2 applicants have defaulted at a total amount of $119,096.33 • Success rate of approximately 81%

27. Contact Information • Kiana Johnson • Executive Director • O’Brien County Economic Development • P.O. Box 616 • Primghar, IA 51245 • 712-957-1313 • ocedc@tcaexpress.net