Catastrophic Response RLF
Coon Rapids offers zero percent interest loan to aid local businesses affected by pandemic
Raccoon Valley Electric Cooperative and Carroll Area Development Corp. partners in loan program
In an effort to assist local businesses, the City of Coon Rapids is offering a Catastrophic Response Revolving Loan to small businesses within the city limits affected by the COVID-19 pandemic. The $5,000 loans are intended to provide working-capital assistance to rebuilding business, and with a streamlined process, they intend to get cash into the hands of business owners quickly.
The Catastrophic Response Revolving Loan is a five-year loan at zero percent interest and no fees with the initial payment deferred six months. It is designed for small businesses that did not receive funds from the Payroll Protection Plan. This program is a partnership with Raccoon Valley Electric Cooperative (RVEC) and the Carroll Area Development Corporation (CADC). The loans will come from the RVEC’s Revolving Loan Funds and will be guaranteed by the City of Coon Rapids, allowing businesses to acquire a loan without putting up collateral. For their part, the City of Coon Rapids has guaranteed up to $20,000 for the loan program.
RVEC’s Revolving Loan Fund Program is funded by a grant from USDA, and until now, restrictions prohibited working capital loans to businesses for operating purposes. Due to the business hardship created by the pandemic, RVEC asked and received special permission from USDA to provide loans for working capital to businesses if a local government (like the City of Coon Rapids) would guarantee the loans. RVEC is setting aside $150,000 of its revolving loan fund for this special working capital program. Individual loan approval continues to be with the RVEC Board of Directors.
RVEC partnered with the CADC and the Sac Economic and Tourism Development (SETD) to provide assistance to small businesses in both Carroll and Sac Counties. Coon Rapids will be the first city to partner with RVEC and CADC to offer this Catastrophic Response RLF Plan to their local businesses.
HOW TO APPLY
Click here to download the program overview
Click here to download the program application
Coon Rapids Community Coordinator Katie Mason
(712-999-4769) is the contact person in Coon Rapids for the program. Applications are due to Mason via email ( [email protected]
) or mail (406 Main Street, Coon Rapids, IA 50058). A special loan review committee will meet to evaluate the applicants and make approval recommendations to the RVEC board.
Raccoon Valley Electric Cooperative (RVEC)
headquartered in Glidden, Iowa, is a member-owned, not-for-profit rural electric cooperative. RVEC provides reliable, affordable, responsible energy to businesses and industries, farms and homes in a nine-county service territory in west central Iowa.
Carroll Area Development Corporation (CADC)
provides support to the existing industry base, assists in the establishment of new industry and works to enhance area quality of place for residents and businesses throughout Carroll County, IA. The CADC board and staff are recognized throughout the Midwest for a bold, future-oriented and politically astute commitment to economic and community development in Carroll County. CADC serves as a catalyst and leading resource for growing new and existing business and industry, while embracing its hard earned reputation as a collaborator, advocate and consensus builder on behalf of county businesses and residents.