Business Incentive Package

Luana Savings Bank (formerly First State Bank Iowa) would like to take this opportunity to annouce it’s new business creation incentive package:

The 3 Million Dollar Loan Fund
 

Purpose of the Loan
 
Luana Savings Bank will provide assistance for private (for-profit) businesses engaged in retail and/or service type of activities.
 
Provided by: Luana Savings Bank - 755 W Bridge Rd, Polk City IA 50226
 
Loan Eligibility
 
The eligibility of a proposed project for a possible Incentive Fund Loan will be determined by the Incentive Fund Committee.
 
Eligibility Criteria:

• Completed Application Form (Loan Application Form)
• All projects need to be located within the city limits of Polk City. On a case by  case basis, the Loan Committee may waive this requirement and provide loan funds to a business located outside of the city limits of Polk City if the committee determines doing so will have a positive economic impact on the community of Polk City.
• Nature of Business
• Proposed use of funds
• Overall Benefits to community:
  • Net increase in space occupied
  • Job creation (present and future)
  • Inventory/Services: Expansion or diversification

Procedures
 
Upon receipt of application, the Incentive Fund Committee will determine eligibility within two business weeks. Applicants will be required to make a formal presentation to this committee. Results will be forwarded to the applicant and desired financial institutions. Return applications to:

LUANA SAVINGS BANK 

755 W Bridge Rd

 Polk City, IA 50226

Incentive Fund Committee:

• 5 representatives of the Luana Savings Bank
• A representative of the Polk City Council

Loan Terms
 
2% under prime - current rate 3%
3 year guaranteed fixed rate
Repayment: Based on the use of the funds
Collateral: Determined by financial institution.
Option: $3,000 per employee, incentive in place of under prime interest rate
 
Loan Approval
 
Once the Incentive Fund Committee determines the applicant eligible for a loan, the applicant will be asked to continue the loan process within the bank.

Documentation needed by the bank will include, but is not limited to:
 

1. Personal/Corporate financial statement and tax returns
2. Source and use of funds
3. Borrower’s business experience and past history
4. Business Plan including cash flow projections
5. Collateral for loan

Loans will be made according to the credit and loan policies normally followed by the individual financial institution.
 
Loan Proceeds
 
Loan may be used for:

1. Purchase of real estate for a business
2. Purchase of empty building for a business
3. Exterior remodeling of currently occupied building
4. Rehabilitation or modification of currently unoccupied building
5. Purchase of equipment and fixtures
6. Purchase of inventory lines
7. Working capital necessary to support an expansion or a new operation
8. Purchase of an existing business
9. New construction projects

Please contact Luana Savings Bank for more information:  515-984-7100.