Webster City is committed to helping businesses start, expand, and stay in the community. A variety of resources are available to support your business venture. Contact the City of Webster City’s Community Development Director, Ariel Bertran, or call 515-832-9151 for assistance with your business needs.
Webster City Revolving Loan Fund
The City of Webster City has played an active role in the development of rural Iowa. Through its board and staff; the City of Webster City has provided not only leadership but financial participation in economic and community development. Now, through the creation of a Revolving Loan Fund (RLF), Webster City is seeking to improve the quality of life in rural areas by contributing to the long-term improvement in the economy, including job creation and retention, diversification of the economy, improving the education and skills of the rural workforce, and upgrading the public infrastructure to improve the health, safety, and/or medical care of rural residents.
Program Summary
Eligible Applicants
In general, eligible projects can include any business venture, governmental public body, or non-profit entity involved in a community or economic development project that creates or saves jobs and/or provides needed community facilities that benefit rural areas in the State of Iowa.
Eligible Uses of Funds
Uses of RLF loan proceeds may be for land, buildings, manufacturing machinery and equipment, office and work equipment or infrastructure improvements. Working capital loans will only be considered in conjunction with the purchase of other assets as previously specified.
Ineligible Uses of Funds
Debt refinancing, projects with no supplemental financing, investment purposes, improvement loans unrelated to expansion/job creation, and agriculture production. See full plan for more information.
Loan Terms
The term of an RLF loan shall not exceed 10 years and may be less than 10 years as determined by the City Council. Loan deferments of up to 2 years may be considered on a project-by-project basis, but, are not encouraged. The minimum loan amount offered will be $25,000 and the maximum loan will be the dollar amount in the fund less one dollar.
Other Funding
A minimum of 20% of the project must be funded from equity or debt sources other than the City of Webster City RLF.
Interest Rates
Interest rates on all subsequent RLF loans will not exceed the prevailing prime rate as published in the Wall Street Journal on the day of loan closing and will be determined based on the evaluation of the applicant’s ability to repay and the necessity of below market financing to advance the project. Interest earned on any RLF loan must stay in the fund for use in making additional RLF loans.
Security
The intermediary will work with the potential loan recipient to obtain security that is adequate for the term of the loan. The nature of the collateral pledged shall be determined by the loan committee on a “project-by-project” basis. If the same collateral is used in joint financing, the RLF will seek a parity position with other lenders.
Terms
While not mandatory requirements, the following maturities will be used as a general guideline:
- Building 10 Years
- Real Estate 10 Years
- Equipment 2 to 7 Years
- Computers 2 Years
Administration Fee
Generally, the RLF will charge an annual administration fee equal to 1% of the outstanding balance of the loan. All closing costs are the responsibility of the loan applicant.
Fund Availability
Applications are accepted at the City of Webster City Manager’s office when the RLF has an available balance of at least $25,000.
USDA prohibits discrimination in all its programs and activities on the basis of race, color, national origin, sex, disability, age, reprisal or retaliation for prior civil rights activity. (Not all prohibited bases apply to all programs.)
Recipients are required to notify applicants with disabilities and Limited English Proficiency (LEP) persons of their right to free language assistance and accommodations and provide free language assistance and accommodations upon request.
To file a program discrimination complaint, complete the USDA Program Discrimination Complaint Form, AD-3027, found online at http://www.ascr.usda.gov/complaint_filing_cust.htmland at any USDA office or write a letter addressed to USDA and provide in the letter all of the information requested in the form. To request a copy of the complaint form, call (866) 632-9992. Submit your completed form or letter to USDA by: mail: U.S. Department of Agriculture, Office of the Assistant Secretary for Civil Rights, 1400 Independence Avenue, SW, Washington, D.C. 20250-9410; fax: (202) 690-7442; or email: program.intake@usda.gov.
This institution is an equal opportunity provider.
WEBSTER CITY RLF APPLICATION WEBSTER CITY RLF PLAN
Other Financial Resources
Corn Belt Power Cooperative Revolving Loan Fund
Pathfinders Strategic Partners Revolving Loan Fund
Iowa Economic Development Authority Business Development
