O’Brien County
Revolving Loan Fund
Investing in our County’s Future
Who are we
8 communities in NW Iowa Archer, Calumet, Hartley, Paullina,
Primghar, and Sutherland, Sheldon, Sanborn
Population – 15,000
Where we are
Establishing the fund
When - In 1989 OCEDC started planning the O'Brien County Revolving Loan Fund
Purpose - to further the public purpose of economic development
Outcome - the creation of new jobs and income, or the retention of existing jobs and income that would otherwise be lost.
Initial Funding
Initial funding for the revolving loan fund was through contributions made from each of the 8 communities in O’Brien County and the O’Brien County Board of Supervisors. Contributions were established on a per capita source based on a 1980 consensus
Beginning Balance
4 years after the initial plan was set in motion, the RLF was first operational in April of 1993 with a beginning fund balance of $60,711.91
Review Process
Applications to the IRP program will be reviewed by the Revolving Loan Fund Program committee facilitated by the O’Brien County Economic Development Corporation. This committee is comprised of 6 financial lenders within the county:
Lending Limits
The RLF fund is for GAP Financing Total O’Brien County RLF funds
requested should not exceed 33.333% of the total projects costs with a maximum loan per project of $100,000
RLF uses or purposesRevolving Loan funds may be used for the
following: Land Purchases Building Purchases Building Construction Machinery Purchases Equipment Purchases Any other uses deemed appropriate by the
RL Committee
Terms
Typically the review committee approves a 10 year amortization with a 5 year balloon.
Applicants can request interest only payments for the first 3-6 months, typically during the construction phase.
Collateral Requirements
O’Brien County maintains at least a second position on realty, personal guarantee or intangibles in an amount equal to the loan.
Value of loan position
Hotel Lender had 1st OCEDC had 2nd
Lender borrowed more money and took 3rd
Bank Forecloses OCEDC received
our payoff in full
Application Costs:
A $50.00 application fee payable to the O’Brien County Economic Development Corporation, must accompany the completed application.
The applicant must pay any loan documentation costs.
A 1% loan application fee will be due upon closing.
Current Portfolio Balance
This fund has increased to a current loan portfolio in excess of $500,000.00.
Funding Sources
The O’Brien County Board of Supervisors annually contribute to the Revolving Loan Fund in the amount of $50,000.00
Exhausted Funds
In 2005 our RLF account was depleted and we saw the need to seek additional funding. An IRP application to the USDA was submitted and approved in the amount of $500,000.00
IRP Award January 2006
IRP Balance
IRP funds were received October 2006. Out of this funding we have already loaned out $300,000 and currently we are waiting for 2 applications to be submitted to the RLF Committee.
Bogenrief Studio’s
Sutherland, Iowa Stained Glass Artist
DK Plastics
Archer, Iowa Plastic
manufacturer
Deluxe Feeds
Deluxe Feeds
Midwest EnRG Flakes
Sheldon, Iowa
Pizza Ranch
Sheldon, Iowa
Hammersmark Books
Hartley, Iowa Independent publisher
specializing in innovative agriculture and commodities topics.
ND Millwerk Salvage & Sales
Paullina Iowa Vintage pieces
from the 1890's thru the 1930's
Hartog Elevator
Sanborn, Iowa
Success Rate
OCEDC has assisted 14 applicants Funded a total of $633,797.38 2 applicants have defaulted at a total
amount of $119,096.33 Success rate of approximately 81%
Contact Information
Kiana Johnson Executive Director O’Brien County Economic Development P.O. Box 616 Primghar, IA 51245 712-957-1313 [email protected]