O’Brien County

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 ocedc@tcaexpress.net