Iowa Administrative Code
Agency 261 - Economic Development Authority
Part III - Community Development Division
Chapter 36 - Downtown Loan Guarantee Program
Rule 261-36.5 - Loan Guarantee Limitations

Universal Citation: IA Admin Code 261-36.5

Current through Register Vol. 47, No. 6, September 18, 2024

(1) For a loan amount less than or equal to $500,000, the authority may guarantee up to 50 percent of the loan amount. For a loan amount greater than $500,000, the authority may provide a maximum loan guarantee of up to $250,000.

(2) A project loan must be secured by a mortgage against the project property.

(3) The authority may guarantee loans for up to five years. The authority may extend the loan guarantee for an additional five years if an underwriting review finds that an extension would be beneficial. Extensions are subject to approval by the director.

(4) The loan must not be insured or guaranteed by another local, state, or federal guarantee program.

(5) The loan guarantee is not transferable if the loan or the project is sold or transferred.

(6) In the event of a loss due to default, the loan guarantee proportionally pays the guarantee percentage of the loss to the lender as established in the agreement executed pursuant to rule 261-36.7(15).

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