Microloan Program


Type of Program: Direct loans to small businesses.

Financing Available: $50,000. If amount is over $15,000, must have denial letter from financial institution.

Use of Loan Proceeds: Working Capital, inventory, supplies, furniture, fixtures, machinery, leasehold improvements and equipment. Real estate purchases are not eligible.

Term of Loan: Maximum maturity of 6 years.

Interest Rate: 8% fixed rate.

Down Payment: None required. Each situation will be evaluated consistent with sound credit policies.

Process Time: 30-45 days from receipt of completed application. Application deadline is the 1st Wednesday of each month.

Collateral: First lien on any assets financed by microloan proceeds and other collateral deemed appropriate under the circumstances.

Guarantees: Personal Guaranty required of business owner(s).

Eligible Businesses: Must meet SBA size standards.

Ineligible Businesses: Non-profit, consumer and marketing coops, floor plans, gambling concerns, any concern involved in speculation.

Area of Operation: Cherokee, Ida, Monona, Plymouth, Sioux, and Woodbury counties in Iowa; Dakota and Dixon counties in Nebraska; Union and Clay counties in South Dakota. Adjacent counties may also be eligible. Call SEDC for confirmation.

Technical Assistance: Borrowers must agree to cooperate with SEDC in development of a plan for intensive technical assistance provided by SEDC at no cost to borrower.

Job Creation Criteria: Creation of new jobs not required.

Fees: $20.00 credit report fee and all costs involved in closing the loan (approximately $250.00).

Loan Application

Printable Applications:

SEDC Loan Application

Online Applications:

Online SBA 504 Loan Application