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*
HOW MUCH CAN I BORROW?
Although the maximum loan is $500,000, the average loaned award is $100,000.
WHAT IS THE INTEREST RATE?
*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?
IS COLLATERAL REQUIRED?
WHAT FACTORS DOES THE REVOLIVNG LOAN FUND COMMITTEE CONSIDER IN MAKING A LOAN DECISION?
- Job Creation
- Debt Coverage
- Credit Score of Guarantor
- Past Operating Performance (if an existing business); Pro Forma (for new business)
- Management Team
DO I NEED A LETTER OF CREDIT DENIAL?
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?
WHO DO I CONTACT TO GET AN APPLICATION?
WHO HAS FINAL APPROVAL OF THE LOAN?
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
FINANCIALS TO PREPARE
IF YOU HAVE A NEW BUSINESS: Pro forma
IF YOU HAVE AN EXISTING BUSINESS: Two years of balance sheets, two years of profit and loss, debt schedule, cash flow, personal financial statement
For additional assistance in these areas, we recommend utilizing these services:
Iowa Small Business Development Center (SBDC)
SCORE East Central Iowa
Small Business Administration (SBA)
U.S. Economic Development Administration (EDA)
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.
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.
Your executive summary is a snapshot of your business plan as a whole and touches on your company profile and goals.
Your company description provides information on what you do, what differentiates your business from others, and the markets your business serves.
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?
MARKETING AND SALES
How do you plan to market your business? What is your sales strategy?
If you are seeking funding for your business, find out about the necessary information you should include in your plan.
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.
An appendix is optional, but a useful place to include information such as resumes, permits and leases.
Documents to prepare and assemble to improve your loan application.
Business Tax Returns
Business Licenses and Permits
Employer Identification Number
Profit and Loss Statement
Cash Flow Statement
Details of Other Loans
Proof of Collateral
*These checklists are not intended to take the place of any of the recommended resources.