15.431 Downtown loan guarantee program.
1. The economic development authority, in partnership with the Iowa finance authority, shall establish and administer a downtown loan guarantee program to encourage Iowa downtown businesses and banks to reinvest and reopen following the COVID-19 pandemic.
2. In order for a loan to be guaranteed, all of the following conditions must be true:
a. The loan finances an eligible downtown resource center community catalyst building remediation grant project or main street Iowa challenge grant within a designated district.
b. The loan finances a rehabilitation project, or finances acquisition or refinancing costs associated with the project.
c. At least twenty-five percent of the project costs are used for construction on the project or renovation.
d. The project includes a housing component.
e. The loan is used for construction of the project, permanent financing of the project, or both.
f. A federally insured financial lending institution issued the loan.
g. The loan does not reimburse the borrower for working capital, operations, or similar expenses.
h. The project meets downtown resource center and main street Iowa design review.
3. a. For a loan amount less than or equal to five hundred thousand dollars, the economic development authority may guarantee up to fifty percent of the loan amount.
b. For a loan amount greater than five hundred thousand dollars, the economic development authority may provide a maximum loan guarantee of up to two hundred fifty thousand dollars.
4. A project loan must be secured by a mortgage against the project property.
5. The economic development authority may guarantee loans for up to five years. The economic development authority may extend the loan guarantee for an additional five years if an underwriting review finds that an extension would be beneficial.
6. The lender shall pay an annual loan guarantee fee as set forth by rule.
7. The economic development authority reserves the right to deny a loan guarantee for unreasonable bank loan fees or interest rate.
8. The loan must not be insured or guaranteed by another local, state, or federal guarantee program.
9. The loan guarantee is not transferable if the loan or the project is sold or transferred.
10. In the event of a loss due to default, the loan guarantee proportionally pays the guarantee percentage of the loss to the lender.
11. Moneys for the program may consist of any moneys appropriated by the general assembly for purposes of this section, and any other moneys that are lawfully available to the economic development authority, including moneys transferred or deposited from other funds created pursuant to section 15.106A, subsection 1, paragraph “o”.
2021 Acts, ch 177, §45
NEW section
Structure Iowa Code
Title I - STATE SOVEREIGNTY AND MANAGEMENT
Chapter 15 - ECONOMIC DEVELOPMENT AUTHORITY
Section 15.101 - Findings and purpose — collaboration described.
Section 15.103 - Economic development board.
Section 15.104 - Duties of the board.
Section 15.105 - Economic development authority.
Section 15.106 - Conflicts of interest.
Section 15.106A - General powers of the authority — legislative findings.
Section 15.106B - Specific program powers — fees.
Section 15.106C - Director — responsibilities.
Section 15.106D - Private activity bonds and notes.
Section 15.106E - Review of authority operations.
Section 15.107 - Bioscience development corporation.
Section 15.107A - Duties and responsibilities of the corporation.
Section 15.107B - Annual reporting requirements.
Section 15.107C - Oversight of corporation.
Section 15.108 - Primary responsibilities.
Section 15.109 - Additional duties.
Section 15.110 - Restrictions relating to councils of governments.
Section 15.111 - Rural development coordination.
Section 15.112 - Farmworks matching funds.
Section 15.113 - Tax lien and delinquency search requirement.
Section 15.114 - Microenterprise development advisory committee.
Section 15.115 - Technology commercialization specialist.
Section 15.116 - Technology commercialization committee.
Section 15.117 - Chief technology officer.
Section 15.117A - Iowa innovation council.
Section 15.118 - Confidentiality of information in financial assistance applications.
Section 15.119 - Aggregate tax credit limit for certain economic development programs.
Section 15.120 - The Iowa energy center.
Section 15.201 - Agricultural marketing program.
Section 15.202 - Grants and gifts.
Section 15.203 - Agricultural products advisory council — duties.
Section 15.204 - Value-added agricultural linked investment loan program — eligibility requirements.
Section 15.231 - Community catalyst building remediation program — fund.
Section 15.240 - Community microenterprise development organization grant program.
Section 15.241 - Iowa “self-employment loan program”.
Section 15.246 - Case management program.
Section 15.247 - Targeted small business financial assistance program.
Section 15.251 - Industrial new job training program certificates — fee.
Section 15.261 - Vacant state buildings demolition fund.
Section 15.262 - Vacant state buildings rehabilitation fund.
Section 15.269 - Cogeneration pilot program.
Section 15.271 - Statement of purpose — intent.
Section 15.272 - Statewide welcome center program.
Section 15.273 - Cooperative tourism program.
Section 15.292 - Brownfield redevelopment program.
Section 15.293 - Brownfield redevelopment fund.
Section 15.293A - Redevelopment tax credits.
Section 15.293B - Application — registration — agreement.
Section 15.294 - Brownfield redevelopment advisory council.
Section 15.300 - Findings and intent.
Section 15.301 - Save our small businesses fund and program.
Section 15.313 - Strategic infrastructure program — fund.
Section 15.317 - Eligibility requirements.
Section 15.318 - Eligible business application and agreement — maximum tax credits.
Section 15.319 - Renewable chemical production tax credit.
Section 15.320 - Reports to general assembly.
Section 15.322 - Future repeal.
Section 15.325 - Negotiations — state and local officials — restrictions.
Section 15.329 - Eligible business.
Section 15.330A - Maintenance of agreements.
Section 15.331 - New jobs credit from withholding.
Section 15.331A - Sales and use tax refund.
Section 15.331B - Exemption from land ownership restrictions for nonresident aliens.
Section 15.331C - Third-party developer tax credit.
Section 15.332 - Value-added property tax exemption.
Section 15.333 - Investment tax credit.
Section 15.333A - Insurance premium tax credits.
Section 15.334 - Exemption from taxation for machinery, equipment, and computers.
Section 15.334A - Sales and use tax exemption.
Section 15.335 - Research activities credit.
Section 15.335A - Tax incentives.
Section 15.335B - Assistance for certain programs and projects.
Section 15.336 - Other incentives.
Section 15.337 - Waiver of program qualification requirements.
Section 15.338 - Nuisance property remediation assistance — fund.
Section 15.341 - Workforce development fund program.
Section 15.342A - Workforce development fund account.
Section 15.343 - Workforce development fund.
Section 15.344 - Common system — assessment and tracking.
Section 15.349 - Shelter assistance fund.
Section 15.353 - Housing project requirements.
Section 15.354 - Housing project application and agreement.
Section 15.355 - Workforce housing tax incentives.
Section 15.368 - World food prize award and support.
Section 15.371 - Manufacturing 4.0 technology investment program.
Section 15.401 - Renewable fuels.
Section 15.412 - Innovation and commercialization development fund.