In yet another move to get capital flowing again, Iowa Gov. Chet Culver has signed legislation creating the Save Our Small Business fund, which will provide loans up to $50,000.
Starting Aug. 1, Iowa small businesses will have access to the fund that will provide loans at 3.9% between $2,500 and $50,000. Administered through the Department of Economic Development and the Iowa Foundation for Microenterprise and Community Vitality under Iowa State University, the loans are available to Iowa businesses with 35 or fewer employees.
A business plan must be approved by a small business development center or a nonprofit agency dealing with business technical assistance. The fund will only be available from Aug. 1 to March 31, 2011 or when the money runs out, Iowa Rep. Bob Kressig noted in his recent newsletter. Kressig is a board member at the $1.7 billion Veridian Credit Union in Waterloo, Iowa.
The SOS fund cannot be used for payroll obligations. Companies with environmental or worker safety law violations do not qualify for the fund's use.