NDC Loan Program waiting to help small business owner
For the small-business owner who may be in need of a financial shot in the arm, or who is considering starting a small business, there may be a resource available through the Newton Development Corporation.
NDC Executive Director Frank Liebl said the Small Business Intermediary Re-Lending Program Loan Fund may be a somewhat under-utilized source for local funding.
“It’s gap financing,” Liebl said. “If the bank doesn’t fund 100 percent of a project, we can step in and fill the gap.”
The purpose of NDC’s Loan Fund Program is to promote new businesses in the Newton area, as well as provide for expansion of an existing business. The program can also provide financing for qualifying community-based projects.
“We’ve provided financing for restaurants, retail businesses, and small industry,” Liebl said. “I think our largest loan was $100,000, but the majority of our loans are in the $50,000 range.”
The IRP essentially is a revolving loan program. The initial funding came from a $100,000 forgivable loan from Maytag, that was combined with a $300,000 loan from the U.S. Department of Agriculture. With that initial seed money, the NDC has been able to make 25 loans totaling $1.4 million since 2001.
Loans generally are for a 36-month period, with equal monthly payments followed by a final balloon payment. Liebl said terms sometimes can be extended.
Loan applicants must demonstrate an ability to operate the business successfully, possess adequate capital to operate the business, demonstrate sufficient past or future earnings to repay the loan and provide adequate business collateral to assure repayment.
Eligible applicants must meet the acceptable definition of a small business, and applications are reviewed on a competitive basis, with an emphasis on those projects whose primary operation involves manufacturing, commercial services or wholesale or retail sales. Communities and community-based organizations also are eligible.
Loans can be used for buying real estate, building construction or improvement, purchase of machinery or working capital.
Liebl said the NDC currently has approximately $150,000 available to loan.
For more information about the NDC IRP Loan Fund, visit the NDC website at www.newtondevelopmentcorporation.com and click on “Business Assistance.” Or, call the NDC at (641) 787-8210.
John Jennings can be contacted at (641) 792-3121, extension 425, or by email at email@example.com.
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