RESOURCE CENTER

F A Q s

WHO IS ELIGIBLE TO BORROW?

Applicants must have directly incurred impacts of COVID-19 (positive or negative) or are creating jobs in an area that has been negatively affected (job losses) by COVID-19.

  • Profit and Nonprofit Businesses
  • Start-up Businesses
  • Expanding Businesses

**All require job retention or job creation and location in the six-county region served by ECIGOG: Benton, Iowa, Johnson, Jones, Linn and Washington Counties.

WHAT CAN I BORROW MONEY FOR?

  • Furniture Fixtures & Equipment (FFE)
  • Working Capital
  • Purchase of Real Estate*
*construction is not eligible



HOW MUCH CAN I BORROW?

$25,000 to $500,000
Although the maximum loan is $500,000, the average loaned award is $100,000.



WHAT IS THE INTEREST RATE?

0% for the first two years; then 2% for the remainder of the term*

*temporary economic recovery terms. This will change is July 2022.



WHAT ARE THE TERMS FOR BORROWING FROM THE REVOLVING LOAN FUND?

  • FFE: From five to seven years
  • Working Capital: From one to five years
  • Purchase of Real Estate: Up to ten years



ARE THERE ANY FEES?

There are no fees for the application process. If your application is funded, there is a 2% closing fee that cannot be rolled into the loan.



IS COLLATERAL REQUIRED?

Yes, there is a requirement that all loans are secured. Collateral may consist of business or personal assets and all loans require a personal guaranty.



WHAT FACTORS DOES THE REVOLIVNG LOAN FUND COMMITTEE CONSIDER IN MAKING A LOAN DECISION?

  • Job Creation
  • Collateral
  • Debt Coverage
  • Credit Score of Guarantor
  • Past Operating Performance (if an existing business); Pro Forma (for new business)
  • Industry
  • Management Team



DO I NEED A LETTER OF CREDIT DENIAL?

Normally yes. However, for COVID relief, this is not applicable. After July 2022, this will be reinstated.



WHAT OTHER REGULATIONS APPLY TO THESE FUNDS?

Applications for the purchase of real estate will be considered on a case-by-case basis. Any required environmental review/Section 106 review must be submitted with the application.

Any specialized installation over $2,000 will require a Davis-Bacon wage determination.

Contact ECICOG for additional information about these and other regulations.



WHAT IS THE PROCESS AND HOW LONG DOES IT TAKE?

Fill out application by the end of the month; application will be reviewed the following month by the Revolving Loan Fund Committee. Applicant is required to present the application to the committee. The RLF committee either denies the application or recommends funding to the ECICOG Board of Directors. The Board will officially approve or deny the application. This happens a week after the RLF Committee makes its recommendation. Closing usually happens within 60 days. This depends on drawing funds from the Economic Development Administration (EDA). Most application time frames from submittal of the application to closing time frames are 30-45 days.



WHO DO I CONTACT TO GET AN APPLICATION?

You may phone the RLF administrator at (319) 289-0069 or email robyn.jacobson@ecicog.org.



WHO HAS FINAL APPROVAL OF THE LOAN?

The ECICOG Board of Directors has final approval of all ECICOG loans.



WHAT YOU NEED TO APPLY

We want you to be confident in your application and increase the probability of approval. Preparation is key to success in this process. Before you apply, you'll want to review that you have completed your business plan and financials. If you need assistance, see our list of resources to guide you on the application components.

GET READY TO APPLY
BUSINESS PLAN

Your plan should contain all the essentials including narrative, marketing plans and competition analysis.

 

Learn more.

FINANCIALS TO PREPARE

IF YOU HAVE A NEW BUSINESS: Pro forma

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IF YOU HAVE AN EXISTING BUSINESS: Two years of balance sheets, two years of profit and loss, debt schedule, cash flow, personal financial statement

​

Learn more.

RESOURCES

For additional assistance in these areas, we recommend utilizing these services:


Iowa Small Business Development Center (SBDC)

EDC, Inc.

SCORE East Central Iowa

Small Business Administration (SBA)

U.S. Economic Development Administration (EDA)

​

Learn more.

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EXPERT

RESOURCES

We recommend utilizing these services as you prepare your business plan and financials.

Click on the photo below to be directed to the resource website named.

 
TIPS FOR

SUCCESS

 
BUSINESS PLAN OUTLINE CHECKLIST*
(source: U.S. Small Business Administration)

A business plan is an essential roadmap for business success. This living document generally projects out three to five years and outlines the route a business or organization will employ to grow its revenue. As you prepare the sections, it is essential to consider how to make your business plan stand out. What makes your business unique? Determining this could help you stand out from the crowd and give you advantages over your competitors.

​

EXECUTIVE SUMMARY

Your executive summary is a snapshot of your business plan as a whole and touches on your company profile and goals.

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COMPANY DESCRIPTION

Your company description provides information on what you do, what differentiates your business from others, and the markets your business serves.

​

MARKET ANALYSIS

Before launching your business, it is essential for you to research your business industry, market and competitors.

​

ORGANIZATION AND MANAGEMENT

Every business is structured differently. Find out the best organization and management structure for your business.

​

SERVICE OR PRODUCT LINE

What do you sell? How does it benefit your customers? What is the product lifecycle?

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MARKETING AND SALES

How do you plan to market your business? What is your sales strategy?

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FUNDING REQUEST

If you are seeking funding for your business, find out about the necessary information you should include in your plan.

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FINANCIAL PROJECTIONS

If you need funding, providing financial projections to back up your request is critical. Find out what information you need to include in your financial projections for your small business.

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APPENDIX

An appendix is optional, but a useful place to include information such as resumes, permits and leases.

 
FINANCIALS CHECKLIST*
Documents to prepare and assemble to improve your loan application.
Bank Statements
Business Tax Returns
Business Licenses and Permits
Employer Identification Number
Financial Statements

  • Profit and Loss Statement

  • Balance Sheet

  • Cash Flow Statement 

Details of Other Loans
Proof of Collateral
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*These checklists are not intended to take the place of any of the recommended resources.

DOWNLOADS
What's Next Overview
VIEW ONLINE
Business Plan Checklist
Financials & Resources
Checklist
What's Next FAQs
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APPLICATION

If you've completed the pre-application requirements, you're ready to apply. 

APPLY
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www.ecicog.org  |  Email Us: robyn.jacobson@ecicog.org   |   Tel: (319) 289-0069   |   700 16th St. NE Suite 301 Cedar Rapids, IA 52402

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EAST CENTRAL IOWA COUNCIL OF GOVERNMENTS | REVOLVING LOAN FUND © 2021 by MONKEYTHIS

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Pursuant to Title VI of the Civil Rights Act of 1964, as amended the Civil Rights Restoration Act of 1987 and other nondiscrimination authorities, it is the policy of the East Central Iowa Council of Governments (ECICOG) that discrimination based on race, color, national origin, sex, age, disability or income status shall not occur in connection with any of its programs or activities. For more information on Title VI, or to file a complaint please see the Title VI section here.