Southern Iowa Council of Governments

The Southern Iowa council of Governments (SICOG) through the Southern Iowa Development Group, Inc's Revolving Loan Fund (RLF) was established with grant funds from the U.S. Economic Development Administration. The RLF is not intended to duplicate or replace the capacity of banks or other lending organizations, nor will the fund be managed with the same objectives as conventional financing.

The goal of the RLF is to assist in the creation of permanent private sector jobs. This is accomplished through the promotion of business start-ups and growth by inter-relating with other local, state, federal and private financing sources and technical assistance organizations to promote economic development through economic diversification.

The RLF has been established to provide loans to qualifying business proposals in all eight counties located in the SICOG area (Adams, Adair, Clarke, Decatur, Madison, Ringgold, Taylor, and Union). These funds have been designated to finance primarily: 1) Industrial activities, 2) Start-up and expansion businesses (i.e., retail, service, manufacturing, telecommunications, and tourism). Priority will be given to businesses which will create higher paying jobs, jobs for the long-term unemployed and the underemployed.

Eligible Applicants




			Industrial Revolving Loan Fund The Southern Iowa council of Governments (SICOG) through the Southern Iowa Development Group, Inc's Revolving Loan Fund (RLF) was established with grant funds from the U.S. Economic Development Administration. The RLF is not intended to duplicate or replace the capacity of banks or other lending organizations, nor will the fund be managed with the same objectives as conventional financing. The goal of the RLF is to assist in the creation of permanent private sector jobs. This is accomplished through the promotion of business start-ups and growth by inter-relating with other local, state, federal and private financing sources and technical assistance organizations to promote economic development through economic diversification. The RLF has been established to provide loans to qualifying business proposals in all eight counties located in the SICOG area (Adams, Adair, Clarke, Decatur, Madison, Ringgold, Taylor, and Union). These funds have been designated to finance primarily: 1) Industrial activities, 2) Start-up and expansion businesses (i.e., retail, service, manufacturing, telecommunications, and tourism). Priority will be given to businesses which will create higher paying jobs, jobs for the long-term unemployed and the underemployed. Eligible Applicants

		Eligible applicants include any private developer, development group, city or county which is actively involved in an economic development project located in he SICOG area when other credit is not available on terms and conditions which will allow for successful completion of the proposed project. Eligible Loans Eligible loans include, but are not limited to: • acquisition and/or improvement of land • buildings • equipment, fixtures, and inventory • limited working capital Application Process & Fees • Eligible projects submit a pre-application which is reviewed by the Review Committee at its regular or called meeting. • Approved applicants are requested to submit a full application with a detailed business plan. • Approved applications are recommended to the SICOG Board of Directors for funding. • A 1.5% application fee is due when the full application is submitted. All closing costs are the responsibility of the applicant. Funding Criteria • New or expanding private sector businesses resulting in job creation and/or retention. • Projects proposing only job retention will be considered only if shown that business will close without funding. • Minimum Loan - $5,000 • Maximum Loan - $125,000 or limited to funds available and/or committee discretion. • Loan Terms: • Fixed Assets - 10 year maximum or committee discretion. • Equipment - 7 year maximum or committee discretion. • Working Capital - 5 year maximum or committee discretion. • Minimum leverage requirement - 2 dollars private funding for every 1 dollar of RLF funds. • Minimum equity 10%. • Job/Cost Ratio goal is one job created or retained per $10,000 loaned. • Documentation that the entire project's capital needs cannot be acquired from other sources. • Minimum interest rate will be 4 percentage points below the current money center prime rate quoted in the Wall Street Journal, but not less than 4%. The Committee will determine the rate on a project by project basis. • Must be secured with fixed assets or other reasonable collateral. Personal guarantees are also required.