Strong business, short on collateral? A state program can help close the gap
Iowa's Collateral Support Program can back part of the collateral a lender needs on a qualifying business loan, and it was recently expanded. Your lender applies on your behalf.
Plenty of good businesses can repay a loan but come up short on collateral. Iowa's Collateral Support Program was built for that gap.
Through the program, the Iowa Economic Development Authority can provide collateral support of up to 40 percent of the collateral shortfall on a qualifying business loan. The North Central Iowa Small Business Development Center reports the program has recently been expanded to cover larger loans.
Your lender applies on your behalf, so the first step is asking your bank whether it takes part. If you are not sure you are loan ready yet, Iowa SBDC business advisors help owners build projections, review statements and work through lender concerns at no cost.
Call HUB 712 at 712-775-3687 and we will point you to the right person.
North Central Iowa Small Business Development Center