Revolving Loan Funds (RLF)
Business Development Revolving Loan Program
MIDAS provides loans for residents of the counties to encourage economic and residential development.
The Revolving Loan Fund (RLF), as established by the MIDAS Council of Governments and the U.S. Department of Commerce, Economic Development Administration(EDA), is designed to encourage new or expanded development activities in the Northcentral Iowa Counties of: Calhoun, Hamilton, Humboldt, Pocahontas, Webster, and Wright. The purpose of the RLF is to support business activities for which credit is not otherwise available. It is the intent of MIDAS to work in conjunction with traditional lending institutions to help facilitate a project through gap financing rather than becoming a “primary lender.” In addition, MIDAS will not act in a venture capitalist capacity. By providing financial assistance to development opportunities, the Revolving Loan Fund will bridge the financial gap that exists between owner equity and the amount traditional lending institutions are willing to commit to facilitate the project. It is not the intent of MIDAS to fund a project that is not supported by a primary loan.
The MIDAS Business Revolving Loan Fund was established in February of 1998 with $178,250 in EDA funds and $100,669.25 in local match dollars, for a total capital base infusion of $278,919.25. The purposes of the fund are to promote economic development within the region by providing loans to businesses for fixed asset financing, including land acquisition, building, equipment and inventory. MIDAS will also make loans for operating capital. All loans are made under the concept of gap financing, which means that MIDAS is a secondary lender, usually providing less than 10% of a project loan (with a maximum of 15%), with the bulk of the project funds coming from financial institutions or private investors.
Since its inception, MIDAS has made 35 loans from the Business Revolving Loan. At the end of June 2014, there was $115,235.73 in the fund available to loan. Loans are for periods up to ten year periods, and have ranged in values from $6,000 to $75,000. Interest rates are usually below the published prime rate. Applications and complete program details are available at the MIDAS office or may downloaded from the Business Development RLF Information page
Housing Revolving Loan Fund
The program was established by the MIDAS Council of Governments and its funding partners to encourage new or expanded housing opportunities in the North Central Iowa Counties of: Calhoun, Hamilton, Humboldt, Pocahontas, Webster, and Wright. The creation and retention of quality and affordable housing for low and moderate income households serves as the main objective of the program. By providing financial assistance to development opportunities, the program will bridge the financial gap that exists between the amount conventional sources can commit for project development and the total amount needed to bring opportunities to completion.
The MIDAS Housing Revolving Loan Fund (RLF) was established in March of 1999 with $500,000 from the Iowa Finance Authority and $350,000 from the Iowa Department of Economic Development, for a total capital base infusion of $850,000. The purposes of the fund are to assist in the creation of new middle-income housing at a cost that is realistic and compatible with the existing housing stock in rural Iowa; to assist in providing the housing necessary to support the additional labor force needed for continued economic growth in the region; to assist communities in providing incentives designed to attract additional developers/contractors into the region; to increase city and county awareness of housing as a regional issue; to enhance the role of the city, county, local businesses/organizations and local banks in providing housing in their communities; to create partnerships among communities with the goal of developing housing projects in such a way as to offer increased incentives for contractors/developers to locate within the region; and to increase the tax base in the communities involved, expanding the ability of the communities to provide necessary services to their residents.
Since its inception, MIDAS has made 33 loans from the Housing RLF. As of the end of June 2014, there was $327,625.24 in the fund available to make loans.
Loans are for periods up to ten year periods, and have ranged in values from $5,000 to $350,000. Interest rates are usually below the published prime rate. Applications and complete program details are available at the MIDAS office or may down-loaded from the Housing Revolving Loan Fund page