Areas Served: City of Des Moines
The City of Des Moines offers several incentives and loans for businesses in city limits.
Grants: Assistance that does not have to be repaid.
Contemporary examples of federal grant programs include programs in the U.S. Economic Development Administration, CDBG, and various specialized federal programs for environmental.
Loans: Permits firms that have difficulty borrowing from the private sector to obtain funding at market or below-market rates, often with less equity than would be required for a private sector loan.
Public loan programs often have of a higher default rate due to the higher risk of the loan and can result in financial loss to taxpayers.
Revolving Loans: Repayments from outstanding loans are “recycled” to make loans to other businesses.
Revolving loan funds can provide a self-renewing pool of funds once they are established and the loans are being repaid.
Maximum loan amount is $50,000 or 50% of total project cost, whichever is greater.
Site Development: The City can offer land for private redevelopment.
The sites are sold at a reduced cost with the City able to provide various incentives such as subsidizing acquisition, undertaking demolition and other site preparation, and provide infrastructure and other area amenities.
Loan Guarantees: A governmental unit assures payment of a large portion of a private bank loan in case the borrower company defaults.
Loan guarantees can promote development by reducing the risk to private banks when they make loans.
Loan Pooling: Two or more lenders contribute to a fund from which loans are made.
Equity Financing: As a condition of the governmental financial assistance, the governmental entity is given a portion of part ownership in an enterprise.
Contact InformationCity of Des Moines
Address: 400 Robert D Ray Drive
City: Des Moines
State: Iowa
Website:
http://www.dmgov.org/EconomicDevelopment/Pages/Incentives.aspx
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