Revolving Loan Funds

Madison County is serviced in parts of the county by Farmers Rural Electric Cooperative. As part of their support of local economic development activity, a revolving loan fund is available. Criteria for consideration includes the financial need of the project, probability of success, security offered, number of jobs created or retained, quality of jobs, among others. Funds are made available as low-interest loan of up to $150,000.

Madison County is also serviced in limited portions of the southern county by Clarke Rural Electric Cooperative. Their revolving loan fund has a goal of providing low interest loans to assist with local economic development projects. Similar to Farmers REC, their priorities include job creation and retention, diversification of the local economy, improving skills of rural workforce, and upgrading public infrastructure. Loan amounts range from $5,000 minimum to $50,000 maximum.

The Southern Iowa Council of Governments / The Southern Iowa Development Group (SIDG) was established for the purpose of administering the Revolving Loan Fund (RLF) program. The SIDG is designed to encourage new or expanded development activities in the Southern Iowa Economic Development District. The creation and retention of quality jobs in the region serves as the main objective of the program.

Key program components:

  • The program will make loans at an interest rate of 4% +/- below the prime lending rate to qualifying commercial and industrial projects;
  • The project must create jobs, with an agency target of $10,000 of loan funds per new job created;
  • A minimum equity of 10% will be required from the developer/owner;
  • A coordination will be required with the local development corporation, who must financially support the application with a 25% local match;
  • The maximum loan term could be twenty years;
  • SICOG will request some type of security on the loan, and;
  • The maximum loan generally will not exceed $125,000.
  • For more information on this subject please contact the SICOG office 641.782.8491.

Tax Increment Financing (TIF)

Incentives can be available for projects in Winterset. The current property tax rate (2007 levy) for industry is $41.01377 per $1,000 of assessed property value. The city may use the incremental new value of newly taxable valuation due to construction of new industrial or commercial facilities to provide economic development incentives to a business or industry. Tax increment financing may be used to pay the cost of public improvements and utilities which will serve the new private development, to finance direct grants or loans to a company, or to provide a local match for federal or state economic development assistance programs. TIF does not increase a company’s property taxes, but it allocates virtually all of the taxes which are paid back to the city, where they may be spent to benefit the company.

New Jobs Training Program (260E program)

A company may be eligible for training funds through the Iowa New Jobs Training program. This program can be administered through either Des Moines Area Community College (DMACC) or Southwestern Community College (SWCC). As few as 10 new jobs being created can make this option viable.

Jobs Training Program (260F program)

A company may be eligible for cost-sharing funds to help with training funds for additional employees. The company is required to match 25% in cash of any training cost above $5,000. The maximum assistance in this program is $25,000. The loan becomes forgiveable if a business completes its training program and trains the specified number of employees. This program is also administered by DMACC or SWCC.

Iowa Business Growth (IBG)

Financing assistance can be arranged for major fixed asset purchases such as land, buildings or equipment. The 504 loan program can provide competitive long-term fixed rates. Financial institutions provide approximately 50% of the project cost; IBG can provide up to 40% and the owner only needing to supply in some cases as little as 10%. IBG can also assist in packaging of applications for traditional SBA- guaranteed loans called 7A. Working closely with you and the bank of your choice, they can improve your requests likelihood of getting approved.

Financial Assistance Programs

The Iowa Department of Economic Development offers an array of financial assistance programs to aid businesses with their expansions. Funds are awarded from the Community Economic Betterment Account (CEBA) and the Economic Development Set-Aside (EDSA) programs based on factors such as job creation, employee wage rates, competition with other Iowa firms, and impact of the project on the economy of the political subdivision of the state. A political subdivision applies for the funds on behalf of the company. The funds may be awarded as a forgivable loan, low- or no-interest loan, or principal or interest rate buy-down on a loan. Funding for rail and road improvements is available through the Iowa Department of Transportation’s Revitalize Iowa’s Sound Economy (RISE) program.

Iowa Targeted Small Business Loans

The Iowa Department of Economic Development provides loans or grants up to a maximum of $50,000 to Iowa businesses that are at least 51% owned and actively managed by minorities, women, or persons with disabilities. The business must be certified as a “Targeted Small Business” prior to applying. The loans are made by local financial institutions and linked to low-cost funds provided by the state.

Iowa Microloan

Iowa MicroLoan offers Iowa Residents financing for start-up, expansion and refinancing of Microbusinesses in Iowa; financing of loans of $5,000 up to $50,000 for a six year term; co-financing with a local lender or loan pool up to $150,000, and more. Learn more at