Tri States Public Radio Staff
Low-Interest Gap Financing
Fri September 21, 2012
SEIRPC Has Money to Lend
The Southeast Iowa Regional Planning Commission (SEIRPC) is trying to get more money in the hands of potential employers.
The organization currently administers four regional revolving loan funds. Its executive committee has signed off on a plan to increase the maximum amount of money available through the funds.
Executive Director Mike Norris says instead of $125,000, potential businesses in Lee, Des Moines, Henry and Louisa Counties could access $250,000.
The low-interest loans are considered gap financing to make up for what a bank or other lending institution does not cover for a project.
Norris says offering more money could attract larger projects and insure the future of the current funds.
"We have to have a minimum utilization rate for the money," says Norris, "so in the right circumstance, being able to lend more money will also preserve it for future use."
Norris says more than $350,000 has already been provided to businesses through the revolving loan funds this year, with more applications to consider.
He says that is nearly double what is awarded during recent years.
SEIRPC's Board of Directors should vote on the proposal later this month.
SEIRPC's Mike Norris