| Financing Available: | $200,000 – max of $250,000 with unanimous approval of SEDC Board 35% to 40% of Total Project Costs Multi- purpose structures - 40% Single purpose structures – 35% |
| Use of Loan Proceeds: | Purchase land and purchase or construct building |
| Term of Loan: | Not more than 20 years; preferably 15 years or less |
| Rate of Interest: | 2% below bank lender’s rate, floor of 2%; adjust when bank rate adjusts |
| Down Payment: | 10% to 15% (multi-purpose versus single purpose) |
| Typical Structure: | 50% financed by Bank Lender (1st Lien Position) 40% financed by SEDC R/E RLF (2nd Lien Position) 10% financed by Equity Injection |
| Application Deadline: | Application deadline is the first Wednesday of each month. |
| Collateral: | 2nd Lien on Project Real Estate; Subordinate only to Bank Lender; 90% LTV for multi-purpose buildings; 85% LTV for single purpose buildings |
| Cash Flow Requirements: | DSCR of at least 1.2X, after all debt service and distributions, for two prior fiscal years |
| Guarantees: | Corporate and/or Personal Guaranty required on all loans. |
| Eligible Businesses: | Same as SBA requirements; Applicant businesses must have been operating for at least two years. |
| Ineligible Businesses: | Non-profit, consumer and marketing coops, floor plans, gambling concerns, any concern involved in speculation. |
| Area of Operation: | Generally includes Buena Vista, Cherokee, Clay, Crawford, Dickison, Ida, Lyon, Monona, O’Brien, Osceola, Plymouth, Sioux, Woodbury counties in Iowa; Dakota and Dixon counties in Nebraska; Union and Clay counties in South Dakota. |
| Job Creation Criteria: | Preferred, but not required |
| Fees: | Processing Fee: one-time fee of 1% of RLF loan Servicing Fee: annual fee of ½% of declining RLF balance Closing Costs are responsibility of Borrower. |
617 Pierce St, Ste 202
Sioux City, IA 51101
Phone: (712) 279-6430
Website: https://www.siouxlandedc.com
Email: sedc@siouxlandedc.com