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As a certified development company, Iowa Business Growth administers the 504 Loan Program. The program has extremely helpful features for small businesses that are in the process of acquiring fixed assets, but want to lower the down payment required and retain more of their own cash for other working capital needs.

What are the benefits to applicants?

• Minimal cash down payment (usually 10%) preserves working capitol
• Fixed, competitive interest rate
• Long-term financing, 10 or 20 years
• No balloon payment

How can the proceeds be used?

• Land or building acquisition
• Building construction or renovation
• Long-term or project-related equipment and furniture
• Soft costs associated with project

What is the typical structure?

Who is eligible?

Applicant must:

• Be owner-operated
• Be for profit
• Have business net worth below $7.5 million and after-tax net profit below 
• $2.5 million average in last two years

Where is the loan available through Iowa Business Growth?

• All of Iowa
• Contiguous states when home office is in Iowa

Are there benefits to the lender involved?

• Definitely
• Lowered risk
• CRA credit
• Extends lender’s loan limits
• More competitive proposal

How do I apply for a 504 loan?

• Contact IBG directly (phone, email)
• See website or literature for contact information
• Work with conventional lender and urge contact to pursue 504 with IBG