Appendix 1

Chapter 1 Materials For Download

Organizational Assessment Worksheet

Business Emergency Preparedness Social Media Toolkit

https://www.ready.gov/business-emergency-preparedness-social-media-toolkit



Appendix 4

Chapter 4 Materials For Download

Understanding Current Cash Flow Worksheet

Understanding Your Risk Worksheet

COVID FUNDING FOR FOR-PROFIT AND NONPROFIT ENTITIES

There are many resources to help organizations — both for-profit and nonprofit — at times of need. That can include instances during a crisis or otherwise. The following list of assets is not all-inclusive but does provide an important overview of the most-used programs.  

SBA Economic Injury Disaster Loans

How much can a business borrow?

• SBA will determine your loan amount based on working capital needs.
• Interest rates:
• 3.75% small businesses
• 2.75% for nonprofit organizations
• Terms up to 30 years
• Payments deferred for one year

How can loan funds be used?

• Working capital loans
• Pay fixed debts, payroll, accounts payable, and other bills that could have been paid had the disaster not occurred
• Can now use to refinance for long-term debt

Collateral requirements?

• Over $25,000 require collateral
• SBA will not decline a loan for lack of collateral.

Important information

• Apply online at www.SBA.gov/Disaster — no cost to apply and no obligation to take the loan if offered

Paycheck Protection Plan (PPP)
The Paycheck Protection Program (PPP) provides loans to help businesses keep their workforce employed during the COVID-19 crisis. Borrowers may be eligible for PPP loan forgiveness.

How much can a business borrow?

• Currently, there is a first and second round of PPP.
• Calculate the average monthly payroll costs.
• Monthly payroll costs include gross wages up to a max of $100,000 per employee.
• (+) Any pre-tax employee contributions for health insurance, life, disability, vision, and dental insurance
• (+) Employer contributions to employee retirement plans
• (+) Employer state and local taxes assessed on employee compensation, primarily state unemployment insurance tax
• Monthly payroll costs x 2.5 = maximum loan amount
• Monthly payroll costs x 3.5 = maximum loan amount for NAICS 72 sectors if applying for a second round

Loan details

• PPP loans have an interest rate of 1%.
• Loans issued prior to June 5, 2020, have a maturity of two years. Loans issued after June 5, 2020, have a maturity of five years.
• Loan payments will be deferred for borrowers who apply for loan forgiveness until SBA remits the borrower's loan forgiveness amount to the lender. If a borrower does not apply for loan forgiveness, payments are deferred 10 months after the end of the covered period for the borrower’s loan forgiveness (between eight weeks and 24 weeks).

Collateral requirement

• No collateral or personal guarantees are required.

How can funds be used?

• Funds can be used for payroll costs, rent, and utilities.

Who is eligible?

• Sole proprietors, independent contractors, and self-employed persons
• Any small business concern that meets SBA’s size standards (either the industry size standard or the alternative size standard)
• Any business, 501(c)(3) or 501(c)(6) nonprofit organization, 501(c)(19) veterans organization, or tribal business concern (Sec. 31(b)(2)(C) of the Small Business Act) that meets the SBA’s size standard.

USDA Business and Industry Guaranteed Loan Program (COVID-specific)

This program offers loan guarantees to rural businesses and agricultural producers for working capital to prevent, prepare, and respond to the economic impacts of COVID-19. Application deadline: September 15, 2021, unless extended.

How much can a business borrow?

• Loan amounts may vary but can be guaranteed up to 90% with terms up to 10 years.

How can loan funds be used?

• These loans must be used as working capital to prevent, prepare for, or respond to the effects of the COVID-19 pandemic.

Collateral requirement

• Sufficient collateral is required at least equal to the loan amount.

Important information

• Land may be used only to support rural businesses, including agricultural producers, that were in operation on February 15, 2020.
• Eligible businesses must be in a rural area not in a city or town with a population of more than 50,000 inhabitants.

CARES Act Revolving Loan Fund Program

The CARES Act RLF program is designed to assist private industrial and commercial borrowers negatively impacted by the COVID-19 pandemic. This RLF is funded in part by the U.S. Department of Commerce's Economic Development Administration and varies by local partner organization.

• Terms up to seven years for working capital, including inventory
• Terms up to 10 years for fixed asset loans
• 0% to 4% interest

FUNDING FOR NONPROFIT ENTITIES

USDA Community Facilities Direct Loan and Grant Program

This program provides affordable funding to develop essential community facilities in rural areas. Facilities include health care clinics, adult and childcare centers, assisted living facilities, and many other community-based initiatives. 

What kinds of funding are available?

• Low-interest direct loans or grants

What are the terms?

• Funding is provided through a competitive process.
• Loan repayment terms may not be longer than useful life or a maximum of 40 years.

What are eligible rural areas?

• Rural areas including cities, villages, and townships with no more than 20,000 residents

Important information

• Grants and direct funding have many additional requirements. Talk to your local council of government to learn more.

Local Philanthropy and Community Foundations

Both private and community foundations can be sources of financial support for nonprofit organizations. They vary by location but are mission-oriented and often consider nonprofits to be eligible applicants. In Iowa, the Iowa Council of Foundations is a source of information for most philanthropic entities in the state. 

FUNDING FOR FOR-PROFIT

SBA 7(a) Loan Program

How much can a business borrow?

• Loan amounts up to $5 million
• Terms up to 25 years
• Payments deferred for one year

How can loan funds be used?

• Pay fixed debts, payroll, accounts payable, and other bills that could have been paid had the disaster not occurred
• Can now use to refinance for long-term debt

Collateral requirements?

• Over $350,000 require collateral

Important information

• SBA partners with financial institutions such as banks and credit unions. 
• You will need to reach out to your bank or credit union who underwrites, closes, and services the loan.

Go to https://www.sba.gov/partners/lenders/microloan-program/list-lenders to find a lender in your area.

SBA Community Advantage 7(a) Pilot Loan Program

How much can a business borrow?

• Loan amounts up to $250,000
• Terms up to 25 years

How can loan funds be used?

• Community Advantage is a pilot program introduced by the U.S. SBA to meet the credit, management, and technical assistance needs of small businesses in underserved markets.

Collateral requirement

• Over $350,000 require collateral

Important information

• SBA partners with financial institutions such as banks and credit unions. 
• You will need to reach out to your bank or credit union who underwrites, closes, and services the loan.

Go to https://www.sba.gov/partners/lenders/microloan-program/list-lenders to find a lender in your area.

SBA Microloan Program

How much can a business borrow?

• Loan amounts up to $50,000 with terms up to seven years

How can loan funds be used?

• These loans are for supplies, furniture, fixtures, materials, equipment, or working capital.

Collateral requirement

• Required at your lender’s discretion. They will look at your debt-to-income ratios for the past two years and your cash flow position.

Important information

• Decisions to approve are made by the lender, not SBA.

SBA 504 Program

A 504 loan can be used for a range of assets that promote business growth and job creation.

These include the purchase or construction of: 

• Existing buildings or land 
• New facilities 
• Long-term machinery and equipment

Or the improvement or modernization of: 

• Land, streets, utilities, parking lots and landscaping, or existing facilities 

A 504 loan cannot be used for: 

• Working capital or inventory 
• Consolidating, repaying, or refinancing debt 
• Speculation or investment in rental real estate

Repayment terms

• Both 10- and 20-year maturity terms

Revolving Loan Funds (RLFs)

How much can a business borrow?

• Typically, between $10,000 and $250,000
• Terms vary from three to five years for working capital and up to 10 years for machinery
• Some revolving loan funds fill a gap for financing

How can loan funds be used?

• Operating capital
• Acquisition of land and buildings
• New construction, facade, and building renovation
• Landscape and property improvements
• Machinery and equipment

Important information

• As a public investment instrument, revolving loan funds are expected to result in public good — namely projects contributing to economic growth and community revitalization. 
• Borrowers must address performance measures such as:
• Number and type of jobs created or retained
• Increase in tax revenue
• Private funding relative to public investment
• While RLFs take on projects with above average risk, borrowers are held to standard financial requirements in loan security and will need the following:
• Business plan
• Business experience and management information
• Credit history, financial statements, and cash flow projections

Iowa Finance Authority State Revolving Fund (SRF)

The State Revolving Fund (SRF) is the best choice to finance the design and construction of Iowa water and wastewater infrastructure.  

The Clean Water SRF funds wastewater treatment, sewer rehabilitation, stormwater quality improvements, and non-point source projects.

The Drinking Water SRF funds water treatment plants or improvements to existing facilities, water line extensions to existing unserved properties, water storage facilities, wells, and source water protection efforts.

The Department of Natural Resources (DNR) and the Iowa Finance Authority (IFA) jointly administer the SRF. The DNR administers the environmental and permitting aspects to get projects ready for financing. This includes engineering and design approval and construction permits. DNR staff assists applicants through the environmental review process. IFA manages the financing side of the programs. IFA staff works with applicants on loan approvals and disbursements.

Clean Water Loan Program

• Publicly owned wastewater treatment works, including those owned by cities, counties, sanitary districts, and utility management organizations are eligible.
• For non-point source projects, both public and private entities are eligible, including farmers, landowners, watershed organizations, landfills, and rural homeowners.

Drinking Water Loan Program

• Public and private community water systems whether they are for profit or not for profit, non-transient non-community public water supplies if they are either publicly owned or are not for profit, and transient noncommunity systems if they are owned by government entities are eligible.

Construction Loans

• SRF has the lowest cost funds compared to other financing options, with interest rate of 1.75% for loans of up to 20 years. The extended loan term is up to 30 years, based on the average life of the project components, for all Clean Water SRF loans. Communities considered disadvantaged under DNR rules can receive 1.75% on loans from 20-30 years. Other extended term loans will be at 2.75%. For Drinking Water SRF loans, only disadvantaged communities (based on Community Development Block Grant criteria) can qualify for extended terms and the interest rate is 1.75%. There is a 0.5% origination fee and a 0.25% annual servicing fee on outstanding principal.

Planning & Design (P&D) Loans

• P&D loans are offered at 0% interest for up to three years to cover engineering and project development costs. P&D loans can be rolled into an SRF construction loan, or paid off with other permanent financing.

Non-point Source Loans

• Low-interest loans are available to public and private borrowers to address stormwater management, inadequate septic systems, landfill closure, lake restoration, soil erosion control, brownfield cleanup, manure management, and much more.
  

OneRD Guarantee Loan Initiative

USDA has removed unnecessary regulations to increase private investment in rural businesses and rural economic development projects and to improve customer service within four flagship loan guarantee programs. USDA implemented a standard set of requirements, processes, and forms for four Rural Development programs including,

• Water and Waste Disposal Guaranteed Loan Program
• Community Facilities Guaranteed Loan Program
• Business and Industry Loan Guarantee Program
• Rural Energy for America Guaranteed Loan Program

USDA Community Facilities Direct Loan and Grant Program

This program provides affordable funding to develop essential community facilities in rural areas. Facilities include health care clinics, adult and childcare centers, assisted living facilities and many other community-based initiatives. 

What kinds of funding are available?

• Low-interest direct loans and grants
• Maximum amount is $100 million
• 80% loan guarantee by USDA

What are the terms?

• Loan repayment terms may not be longer than useful life or a maximum of 40 years.

What are eligible rural areas?

• Rural areas with populations of 50,000 residents or less

Important information

• To get started with this program contact your local Council of Government.

USDA Water and Waste Disposal Guaranteed Loan and Grant Program

This program helps private lenders provide affordable financing to qualified borrowers to improve access to clean, reliable water and waste disposal systems for households and businesses in rural areas. Funds may be used to improve facilities for drinking water, sanitary sewers, solid waste disposal, and storm water disposal facilities.

What kinds of funding are available?

• Low-interest direct loans and grants
• 80% loan guarantee by USDA

What are the terms?

• Loan repayment terms may not be longer than useful life or a maximum of 40 years.

What are eligible rural areas?

• Rural areas with populations of 50,000 residents or less

USDA Community Facilities Program — Transportation Infrastructure

Upgrading or building new transportation infrastructure can come at a high cost, especially for small communities with limited resources. This program offers affordable financing through its loan and grant program.

Types of projects that can be used:

• Road and bridge construction or repair,
• Pedestrian safety upgrades,
• Accessibility improvements,
• Commuter bike lane or path development,
• Other enhancements that would support the Safe Routes to School initiative
• Public transportation system upgrades
• Construction or repair of transportation department facilities

What kinds of funding are available?

• Low-interest direct loans or competitive grants
• 80% loan guarantee by USDA

What kinds of projects are competitive for grants?

• Very small and low-income communities seeking assistance with projects valued at less than $250,000 are the most competitive applicants for grant funding.

What are eligible rural areas?

• Rural areas with populations of 20,000 residents or less

Community Development Block Grant (CDBG) 

The Iowa Economic Development Authority (IEDA) administers the federal Community Development Block Grant (CDBG) program in all of Iowa’s incorporated cities and counties, except those designated as HUD entitlement areas (larger cities). Authorized under the Housing and Community Development Act, the program has a main goal to “develop viable communities by providing decent housing and suitable living environments and expanding economic opportunities, principally for persons of low and moderate incomes.”

All projects must meet the National Objectives as defined by HUD, including:

• Community Facilities and Services: Assists projects such as day care facilities, senior centers, vocational workshops, and stormwater projects.
• Downtown Revitalization Fund: Rehabilitates blighted downtown buildings.
• Employment Transportation: Provides transportation for individuals to travel to job activities or job education opportunities. 
• Housing Rehabilitation: Assists communities with preserving existing housing stock and creating new housing opportunities. 
• Opportunities and Threats Fund: Reserves funds for communities facing an imminent threat to the public requiring immediate assistance.
• Water and Sewer: Assists cities and counties with projects such as sewer, water, and wastewater treatment system improvements, storm sewer projects, and rural water connections.

EDA Build to Scale Program

EDA’s Office of Innovation & Entrepreneurship is committed to furthering tech-based economic development initiatives that accelerate high-quality job growth, create more economic opportunities, and support the future of the next generation of industry-leading companies. Funding is available for organizations that aid companies in developing the next generation of technologies. Under the Build to Scale Program, EDA has two separate competitions that are due in April of each year if funding allows.

Types of competitions

• Venture Challenge is for those who seek to support entrepreneurship and accelerate company growth in their community or region.
• Capital Challenge provides operational support for the formation, launch, or scale of investment funds that seek to invest their capital in scalable startups (i.e., venture funds, seed funds, angel funds) or to organizations with a goal to expand capital deployment within a community, region, or regional industry (i.e., angel networks or investor training programs).

Types of projects that can be used:

• A state
• An Indian tribe
• A city or other political subdivision of a state
• A nonprofit organization
• An institution of higher education
• A public-private partnership
• A science or research park
• A venture development organization
• An economic development organization

Match

• Applicants must provide matching share equal to at least 50% of the total project cost.
  

Request limits

• Venture Challenge applicants may not exceed $750,000 and may not exceed $1,500,000 over a three-year project period.
• Capital Challenge applicants may not exceed $400,000 in funding over a three-year project period.