The City of Ames Revolving Loan Fund was developed to provide for a local match for various state financial assistance programs. The purpose of the loan is to assist area businesses in expansions and relocation. The program was designed for gap financing with city loan representing no more than 15% of total financing. The emphasis is on the projects that expand the tax base and create quality jobs. Loans are typically made for five years at 1/2 of prime. The maximum amount of any one loan is $50,000. Generally, awards are between $1,000-$2,000 per job created. Applications can be made at any time. Loan applications are reviewed by a revolving loan fund committee and subject to Ames City Council approval.
The Ames Seed Capital Fund is a pool of funds contributed by private sources (corporations and individuals) for the purpose of providing equity financing. The Fund is a program of the Ames Economic Development Commission that is designed to provide working capital assistance for small business start-ups and expansions. Investment in a business will not exceed $100,000 with $50,000-$60,000 being the average. The investment is structured as a variation of stock or debentures with an option to purchase stock at a fixed dollar amount. The Fund's goals are to provide a solution to specific small business financing needs, help create and retain jobs, and provide positive economic impact to the community. The Fund shall be profit oriented with an expected return of two to ten times the original investment over a five year period.
The City of Ames and the Ames Economic Development Commission can provide up to $50,000 in financial assistance to provide a local match for State financial assistance programs and to fill financing gaps in economic development projects. The assistance is typically in the form of a no-interest or low interest loan, but it can take the form of a forgivable loan for projects with high paying jobs and significant capital investment.
The Ames City Council has approved an ordinance for a partial exemption from property tax of the actual value added to real estate by the new construction of industrial real estate, research facilities, warehouses, owner-operated cattle facilities, and distribution centers. The amount of actual value added that is eligible to be exempt from taxation is as follows: Year 1, 75%; Year 2, 60%; Year 3, 45%; Year 4, 30%; Year 5, 15%. Applications are filed with the Ames City Assessor and must be submitted by February 1 after the year of construction. Companies may file for prior approval.
For details on how to submit an application for financial assistance, or for more information, contact the AEDC.