Purpose:

To assist projects locating in target areas to utilize the SBA 504 Loan mechanism.

General Eligibility:

• For use only in conjunction with SBA 504 projects located in CDBG target areas or designated industrial parks.
• Project must demonstrate necessity of LIP financing.
• Project must create/retain at least one job for every $10,000 of LIP assistance or meet other CDBG national objectives.
• LIP cannot exceed 10% of total project costs or $50,000, whichever is less.

Terms and Conditions:

• Interest rate is negotiable.
• Term and amortization negotiable, subject to SBA 504 regulations.
• Subordinate mortgage or security interest in uses of loan proceeds required (or other collateral approved by the Corporation for Economic Development in Des Moines (CEDDM).
• Personal guarantee required.
• Must meet federal requirements of equal employment opportunity, environmental clearance, labor standards provisions and 504 regulations.

Required Information: SBA 504 application submissions and documentation of necessity for LIP finding, as determined by the CEDDM Loan Review Committee.

For additional information, please e-mail OED@dmgov.org or call (515) 283-4004.