Region XII Council of Governments recently announced it has secured funds for business lending.
Executive Director Rick Hunsaker says the group finalized paperwork to bring in $1 million, which will be available to businesses in its region that are looking to expand, start-up or transition ownership. Eligible counties include Audubon, Boone, Carroll, Crawford, Greene, Guthrie, Jasper, Marion and Sac Counties, and the non urban parts of Dallas, Story, Polk and Warren Counties. This is the first loan from the USDA that Region XII will be able to use funds to finance housing developers, and loan rates are fixed at the time of closing, with this loan’s rate currently at 5.5-percent.
Aside from providing jobs in ove of the eligible counties, the projects must also meet other conditions. Applicants must attempt to leverage bank financing, as Region XII usually funds up to 40-percent of the total cost, business owners must contribute at least 10-percent in cash, though equity may be considered, the business must be unique or demonstrate a market niche for the service area, and the application must be sponsored by a local economic development group.
Some projects may have other requirements, which will be discussed with each applicant. Loan applications can be found at the link in this story online, and information can be received by contacting Tami Lehmann at 712-775-7802 or tlehmann@region12cog.org.