Hawarden, Iowa - In September of 2008 the City of Hawarden’s Economic Development arm received a grant from the United States Department of Agriculture for the amount of $70,000. This money will be used to establish a revolving loan fund to benefit small businesses retention, start ups and expansions. One program being established is the 5/5/5 program.

The City of Hawarden has created the Hawarden Revolving Loan Fund 5/5/5 Program to provide financial assistance to start-up and existing businesses within the community. The Fund offers a limited amount for loans, not grants. These loans are subject to the availability of funds and offer up to $5,000 for a term of 5 years at 5% interest.

This loan provides supplemental financing to small and medium sized businesses located within Hawarden. Projects must create or retain jobs, improve buildings or equipment, or promote expansion. Program funds can be used for most aspects of start-up or expansion projects and, in some cases, may include needed working capital. Funds cannot be used to refinance existing debt or subsidize payments on existing debt.

The loan objectives are:

 Provide supplemental financing to businesses for start-up or expansion projects
 Offer financial assistance for the acquisition or expansion of real estate, machinery and equipment that will promote the retention and expansion of existing jobs and income located in Hawarden
 Diversify and increase employment opportunities by increasing the number and types of businesses in Hawarden

The criteria include:

 The maximum loan amount shall not exceed $5,000.
 There must be evidence of adequate private equity.
 There must be evidence that loan funds are necessary to make the proposed project feasible.
 There must be evidence that the project is feasible and that the business requesting assistance can continue as a “going concern” in the foreseeable future without additional or ongoing assistance.
 There must be evidence that no significant negative land use or environmental impact will occur as a result of the project.
 The project must be within Hawarden.
 The applicant must be the owner or purchaser of the business or his/her duly authorized representative.

The fund will be managed by the Hawarden Economic Development Revolving Loan Fund Review Committee with final approval of any loans to be given by the Hawarden City Council.