Revolving Loan Fund
NIACC Revolving Loan Fund Program
The NIACC John Pappajohn Entrepreneurial Center was awarded a Rural Enterprise Grant from the United States Department of Agriculture Rural Development to create the Revolving Loan Fund Program. This program was designed to assist with new business development and the expansion of existing businesses. Matching funds are required to receive the RLF Loan Funds.
Who It Is For
To be considered for the Revolving Loan Fund, applicants must meet the following requirements:
- Applicants of the RLF will be required to meet their financial needs from their own resources and commercial financial institutions. The RLF will be used to finance applicants gap needs that cannot be met from the above resources. The total Revolving Loan Fund portion may not exceed 25% of the total financing package
- Evidence that the proposed project will support job creation or job retention
- A program goal of one permanent job created or retained for every $10,000 of Revolving Loan Funds
- Loan amounts of up to $25,000
- Loans may be amortized over a maximum five-year period
- Interest rate is 4%
- Evidence that the Revolving Loan Funds are necessary to make the proposed project feasible
- Be a client of the NIACC Small Business Development Center (SBDC) and meet with an SBDC counselor at least once per quarter. Click here to become a client.
All loans are subject to the availability of funds.
Small businesses and industries are defined for this program as employing fewer than 50 individuals and generating less than $1 million in annual gross sales. All projects must be located within NIACC’s Area II Region: Wright, Winnebago, Worth, Mitchell, Hancock, Franklin, Floyd, Cerro Gordo, and Butler counties. If the business relocates outside of these counties, immediate loan payoff is required.
Funds Can Be Used For
Revolving Loan Fund dollars may be used for a variety of project activities related to startup and business growth, including but not limited to:
- machinery and equipment
- furniture and fixtures
- startup operating costs
- working capital for business startup
- expansion activities
- technical assistance for private business enterprises
Funds Cannot Be Used For
Revolving Loan Fund dollars cannot be used for:
- Producing agricultural products through growing, cultivation, and harvesting, either directly or through horizontally integrated livestock operations, except for commercial nurseries, timber operations, or limited agricultural production related to technical assistance projects
- To finance comprehensive area-wide type planning. This does not preclude the use of grant funds for planning for a given project.
- Programs operated by cable television systems
- A portion of a project that depends on other funding unless there is a firm commitment of that other funding
- Paying off previous debt
Application Procedure
Applications for the Revolving Loan Fund are accepted on a continuous basis through the NIACC John Pappajohn Entrepreneurial Center and the Small Business Development Center. Completed applications are reviewed by the Revolving Loan Fund Committee within 30 days of receipt. Applicants are formally notified of approval, contingency approval, or denial within 10 days of review.
Any costs associated with credit reports, UCC searches, filing legal documents, or similar items are the responsibility of the applicant. The Revolving Loan Fund is administered by a Loan Committee made up of three voting members, with a simple majority carrying decisions.
Learn More and Apply
For more information about the Revolving Loan Fund program or to begin the application process, please contact us directly or reach out through our contact form.
Granted by: USDA Rural Development
Administered by: NIACC John Pappajohn Entrepreneurial Center