Why is the interest rate higher than local lenders?
A: Our interest rate pricing is based upon our cost of funds at around 2.5% and a projected loan loss cost of 6%. Due to the smaller size of the loans and the technical assistance grants provided in this program, it is necessary to charge approximately 2% more than most financial institutions in Iowa.
What if I want to pay off the loan early, are there any penalties?
Can I get a microloan to finance the purchase a building or piece of land?
A: No, our funding source does not allow us to finance real estate of any kind.
What if I do not use the TA grant money each year, does it roll over into next year?
A: No, our grant funding source requires that we settle each year's grant funding annually.
Can I have more than one loan?
A: Yes, as long as the cumulative balance of your total loans disbursed is below $50,000.
Do non-profit organizations qualify?
A: For the SBA Microloan pool, the only non-profit exemption is for day care services. All other non-profits are ineligible for the current IowaMicroLoan Program. As IowaMicroLoan acquires different sources of loan funding, this condition may change.