DEVELOPMENT LOAN FUND
The Main Street Development Loan Fund (MSDLF) provides loans to eligible small businesses within the designated Main Street Districts in the following communities: Bloomfield, Charles City, Greenfield, Iowa Falls, Sac City, and West Des Moines. This is a pilot project exclusively within these designated communities to evaluate its utilization and effectiveness.
The MSDLF is designed to provide gap financing to assist start-up or expanding businesses in historic commercial cores located within the designated Main Street districts. This program requires local collaboration between the Main Street program, local lenders, and businesses within the districts.
HOW THE LOAN CAN BE USED
The loan fund will provide loans up to $50,000 for startups, expansion and refinancing for small businesses with 10 or fewer employees that are focused on filling Main Street commercial district buildings. The loans will have an interest rate of 7.5% APR and a negotiated term up to 72 months. Small business owners will apply to their local bank and the MSDLF as a co-financing arrangement. The primary reason for this co-financing arrangement is to provide additional access to capital for small business owners.