NanoLoan

The NIACC Pappajohn NanoLoan Program was created to assist emerging, pre-bankable businesses with funds to complete development or expansion. NanoLoans help support entrepreneurs who may not yet qualify for traditional credit, but who need smaller-scale capital to continue moving their business concept forward. The program also helps facilitate entry into self-employment and small business ownership for underrepresented entrepreneurs, including women, minorities, and individuals with disabilities.

NanoLoan amounts are available for up to $2,500, for terms of up to 42 months, at the prime lending rate in effect on the date the application is received. All loans are subject to the availability of funds. Applicants in a recognized business incubator may be eligible to apply for a second NanoLoan, for a total maximum of $5,000.

NanoLoans are intended for entrepreneurs who are still in the early stages of development and are not yet bankable. This may include businesses that are still refining their concept, completing a business plan, or building toward readiness for more traditional financing.

To be eligible, applicants must:

• complete or be enrolled in an approved entrepreneurial training course
• have a completed or in-process business plan
• provide a statement for use of funds
• provide a personal financial statement
• be a pre-bankable emerging business
• be, or plan to be, a full-time, for-profit business. Hobbyists are not eligible.
• be, or plan to be, physically located within the NIACC Area II Region: Butler, Cerro Gordo, Floyd, Franklin, Hancock, Mitchell, Winnebago, Worth, or Wright County. If the business locates out-side of thes nine counties, immediate loan pay off is required. 
• meet quarterly with John Pappajohn Entrepreneurial and SBDC staff for ongoing technical assistance

NanoLoan funds may be used for:

• prototype development
• obtaining intellectual property
• technical assistance
• machinery and equipment
• startup operating costs
• working capital
• other approved expenses

Applications for the NanoLoan Program are accepted on a continuous basis through the NIACC Pappajohn Center, the Small Business Development Center, or the North Iowa Business Accelerator. Once a completed application is received, the Loan Review Committee considers it within five working days. Applicants are then formally notified of approval or denial within three working days of review.

For more information about the program, review the brochure and application materials below.

NanoLoans are a financial innovation that originated in developing countries, where they helped extremely impoverished people pursue self-employment, generate income, and in many cases begin building wealth and moving out of poverty. Over time, many in traditional finance came to recognize that these borrowers were better described as pre-bankable rather than unfinanceable, and NanoLoans gained increasing credibility in the broader finance industry. The modern model grew through early pilot projects with ACCION and Muhammad Yunus in the mid-1970s. In 2005, the United Nations declared the International Year of Microcredit, and Muhammad Yunus was awarded the Nobel Prize in 2006.