“Accessing Iowa’s Revolving Loan Funds”

Community Vitality Center Presentation 2005 Entrepreneurship Academy October 21, 2005 “Accessing Iowa’s Revolving Loan Funds” Bruce Nuzum Iowa Area Development Group

CVC Entrepreneurship Academy • Introduce Iowa Area Development Group • Share IADG’s RLF Success Story • Explore Iowa’s RLFs Presentation Overview

Membership 85 consumer owned utilities The economic development organization for Iowa Rural Electric Cooperatives & associated Municipal Utilities.

“IADG: Powerful Partnerships... connecting people and resources to grow businesses and communities in Iowa!” IOWA AREA DEVELOPMENT GROUP

Sponsors

Mission Community & Business Development Creating & Sustaining An Economic Development Culture Among Member Utilities # 1 JOB

M A R K E T I N G T A E S C S H I N S I T C A A N L C E R E S E A R C H T R A I N I N G Strategy Community & Business Development

Results Community & Business Development • 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

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 years Real Estate 10 years Equipment 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

“Accessing Iowa’s Revolving Loan Funds”