Muscatine County Housing Revolving Loan Fund


The objective of the Muscatine County Revolving Loan Fund (RLF) is to further the public purpose of economic development by providing low to moderately priced housing through joint public and private investments.

Before RLF funds are used as financial assistance to private persons or on behalf of private persons for economic development, the GMCCI shall determine that a public purpose will reasonably be accomplished by the dispensing or use of these funds. The GMCCI shall give consideration to factors including but not limited to the following:

a. Development policies in the dispensing of public funds should be targeted toward businesses that generate public gains and benefits which gains and benefits are warranted in comparison to the amount of funds dispensed.

1. Use of Housing RLF Funds

A. RLF funds may be used for the following:

- Single Family residences targeted to low and moderate income families

- Multi-family residences that will provide housing targeted to the moderate lower income definition

- Renovation of aforementioned projects

- Other uses deemed necessary and proper by the GMCCI Finance Committee

2. Project Participation/Lending Limits

A. Any eligible project located within the boundaries of Muscatine County may apply for funds.

B. The RLF financial participation in an eligible project cannot exceed 40% of the total project cost or a maximum of $60,000, whichever is less.

C. The RLF applicant must provide a minimum of 60% of the total project cost through equity injection, additional financing, or some combination of the two.

D. The RLF applicant must provide a minimum of 20% of the total project cost in the form of equity.

E. If the applicant chooses to utilize conventional financing as a portion of their 60% minimum total project contribution, they must first attempt to use a lending institution located within Muscatine County to be eligible to use RLF funds. If no Muscatine County lending institutions are willing or able to participate, applicant is free to pursue financing outside of Muscatine County.

F. Persons serving on the Board of Directors of the GMCCI, the Finance Committee, or employees of the GMCCI shall fully disclose any interest or involvement that they or members of their immediate families have with any applicant company. Members of the Board of Directors or Finance Committee will abstain from voting on applications submitted by applicant companies with which they or members or their immediate families have any financial interest or active involvement. Further, members of the GMCCI Board of Directors, the Finance Committee or staff will refrain from participating in any discussion of an application for financial assistance through the RLF from any company in which they or members of their immediate family have a financial interest or active involvement unless requested to participate by the GMCCI Finance Committee.

3. Loan Structure and Terms

A. All funds loaned from the Housing RLF will be at a minimum 3% fixed interest rate for the full term of the loan. A lower interest rate will be considered when receipt of state funds requires a lower interest rate.

B. All interest earned will be paid back into the RLF.

C. There will be a 10-year maximum loan payback period.

D. If the RLF is ever dissolved, current outstanding loans will continue for the term of the loan.

E. Loan terms will be negotiated by the Finance Committe and the applicant.

F. If the recipient of RLF funds fails to comply with any provisions of their specific loan agreement, any portion of these guidelines or to meet job creation/retention or payroll goals offered as justification for us of RLF funds, the Finance Committee reserves the right to call the loan due, accelerate payment or utilize other remedies to enforce compliance after consultation with the participating private lender(s).

Using the Muscatine County Housing Revolving Loan Fund

The following information is provided to help you determine if your business is eligible to receive loans from the Greater Muscatine Chamber of Commerce & Industry (GMCCI) Revolving Loan Fund (RLF).

1. Review the attached guidelines to determine eligibility of your project. Particularly address these issues:

A) Does your project provide needed low to moderately priced housing?

B) What is the total project cost?

C) Can you supply the necessary equity?

2. If you have answered these questions and feel your project is eligible, your next step would be to contact the GMCCI or a private lending institution located within Muscatine County with the details of your project.

3. The GMCCI working with the lending institution will then make an initial determination as to the feasibility of the project and its compliance with Housing Revolving Loan Fund Guidelines.

4. If the initial determination is favorable you should obtain application materials, complete them providing all requested information and submit them first to the lending institution for their examination, or in cases where no private lender is involved, the GMCCI.

5. You should then await word from the appropriate party as to the progress of your application. If further information is required you may receive a request for a conference with the private lender, the GMCCI, or both.

For further information, contact:

Deb Hutton
Financial Services & Membership Manager
Greater Muscatine Chamber of Commerce & Industry
319 East 2nd Street, Suite 102
Muscatine, IA 52761
(563) 263-8895