Picture

Loan Injection Program (LIP)

Picture
Purpose
The purpose of the Loan Injection Program is to assist projects located in target areas within the City of Des Moines to utilize Small Business Association 504 loans.

General Eligibility
LIP loans are for use only in conjunction with SBA 504 projects located in Community Development Block Grant (CDBG) target areas or designated industrial parks within the City of Des Moines. 
Projects must demonstrate the financial necessity of LIP financing. create or retain at least one job for every $10,000 of LIP assistance or meet other CDBG national objectives and can’t exceed 10% of total project costs or $50,000, whichever is less.

Terms and Conditions
  • Interest rates are negotiable.
  • Term length and amortization are negotiable, subject to SBA 504 regulations.
  • A subordinate mortgage, security interest or other collateral approved by our office for use of loan proceeds, and a personal guarantee are required.
  • Businesses must meet federal requirements of equal employment opportunity, environmental clearance, labor standards provisions and SBA 504 regulations.

Required Information
An SBA 504 application and documentation of the need for LIP funding are required as determined by our loan review committee.

The Process
Upon receipt of completed application materials, loan review committee and SBA approvals will be sought. Typical turnaround time is 30 days.

Our Mission

Our mission is to enhance economic development in the City of Des Moines and the Greater Des Moines area.

Our goal is to make the funding programs we administer straightforward and easy to access.