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Accessing Iowas Revolving Loan Funds
Community Vitality Center Presentation 2005
Entrepreneurship Academy October 21, 2005
Bruce Nuzum Iowa Area Development Group
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CVC Entrepreneurship Academy
Presentation Overview

• Introduce Iowa Area Development Group
• Share IADGs RLF Success Story
• Explore Iowas RLFs

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Membership
85 consumer owned utilities
The economic development organization for Iowa
Rural Electric Cooperatives associated
Municipal Utilities.
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IOWA AREA DEVELOPMENT GROUP

• IADG Powerful Partnerships...
• connecting people and resources
• to grow businesses and communities
• in Iowa!

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Sponsors
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Mission
Community Business
Development

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• Creating Sustaining An
• Economic Development Culture
• Among Member Utilities

JOB
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Strategy
Community Business
Development
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Results
Community Business
Development

• 507 increase in CI power sales
• 388 increase in CI 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

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IADGs 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

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Iowas Vast RLF Resources

• Who Operates RLFs?
• Councils of Government
• www.iarcog.com/regions.htm
• City / County Development Organizations
• Rural Electric Coops
• Rural Telcos

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Iowa Rural Development Council

• RLF Survey Electronic Data Base
• Preliminary - 73 RLF Funds
• Access, Balance, Term Contact Information
  ultimately available at
• www.iowarural.org

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www.iowarural.org
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www.iowarural.org
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www.iowarural.org
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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

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RLF Borrowing Opportunities

• Eligible Applicants
• Eligible Uses of Funds
• Ineligible Uses of Funds
• Loan Terms
• RLF Project Lending

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Eligible Applicants

• New or Expanding Private Businesses
• Local Governments
• Non-Profit Community Organizations

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RLF Project Lending

• Manufacturing
• Service
• Value Added Agricultural
• Retail
• Medical
• Community Facility

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Eligible Uses of Funds

• Land Purchase
• Buildings
• Machinery Equipment
• Infrastructure

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Ineligible Uses of Funds

• Pre-development Costs
• Refinancing
• Production Agriculture
• Housing

Varies by fund Limits may apply
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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

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Iowas 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