The state of Iowa has launched a new $5-million small business loan program, which will give entrepreneurs financing to help encourage business formation and growth.
The funds can be used by entrepreneurs for a variety of reasons, including upgrading equipment, increasing energy efficiency or improving their supply chains. The loans range from $2,500 to $50,000 at a low 3.9 percent interest rate. That rate can be further reduced if it is combined with other financing sources that cover at least one-third of the project.
“I am pleased to announce the launch of the Iowa Small Business Loan Program as another resource to support the growth of young companies within the state. These resources will allow them to create new financial opportunities for themselves, their employees and the communities in which they operate,” Governor Chet Culver said. “These businesses will create new jobs, make our economy stronger and help move Iowa forward.”
To be eligible, companies must have a business plan, be located in Iowa, be owned by state residents and have fewer than 35 workers.
The program will help improve an already strong business environment. A CNBC study of the Top States for Business ranked Iowa No. 1 in terms of the cost of doing business, and sixth in the country overall.