“access to capital”
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“Access to Capital”
Revolving Loan Fundsfor
Entrepreneurship
Rand M. Fisher
Iowa Area Development Group
Community Vitality Center PresentationEntrepreneurship AcademyOctober 20, 2004
CVC Entrepreneurship Academy
• Introduce Iowa Area Development Group• Share IADG’s “RLF Success Story”• Present RLF Borrowing Opportunities• Explore Iowa’s Vast RLF Resources
Presentation Overview
Introduce Iowa Area Development Group
• Membership
• Sponsors
• Mission
• Strategy
• Results
IOWA AREA DEVELOPMENT GROUP Community Foundation
“IADG: Powerful Partnerships...
connecting people and resources
to grow businesses and communities
in Iowa!”
The economic development organization for Iowa Rural Electric Cooperatives & associated Municipal Utilities.
Membership85 consumer owned utilities
Sponsors
Mission
Creating & Sustaining An
Economic Development Culture
Among Member Utilities
Strategy
TRAINING
RESEARCH
T AE SC SH IN SI TC AA NL C E
MARKETING
Results
• 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.)
• 84 USDA awards ($22.8 million)
• 28 rural revolving loan funds
• 1,000 plus projects
IADG’s “RLF Success Story”
• USDA REDG Program
• USDA IRP Program
• IADG Partner Participation
• IADG RLF Landing Statistics
USDA Grant for Revolving Loan Fund
RUS Grants to RLF$300,000 Max
REC Administered RLF $360,000
REC
REC Matches 20% with own funds $60,000 Max
IADG Partner Participation
• 51 REDG Awards $14,459,144
28 Revolving Loan Funds• 6 IRP Awards $3,450,000 • $3,754,328 of IADG Partner Match• 138 REDG & IRP Loans
$158 M Investment Leverage
4,270 Job Creation/Retention
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
Eligible Uses of Funds
• Land Purchase• Buildings• Fixed Assets• Machinery & Equipment• Infrastructure
Ineligible Uses of Funds
• Pre-development Costs• Refinancing
Loan Terms (Typical)
• Amounts: Minimum/Maximum $5,000 to $150,000• Rates: 0 to Prime - Ave 4%• Terms: Based on Collateral
Building 10 yearsReal Estate 10 yearsEquipment 5 to 7 years
• Other Funding: 20% Debt or Equity
RLF Project Lending
• Manufacturing• Service• Agricultural• Retail• Medical• Community Facility
Iowa’s Vast RLF Resources
• Iowa Rural Development Council Survey
• Results• Electronic Data Base
IRDC Survey and Results
Preliminary Findings
• 73 RLF Funds• $19 M in Capital• Access, Balance, Term & Contact
Information ultimately available at:
www.iowarural.org
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