New and expanding businesses in Algona have a wide range of resources available for financing through the City of Algona, Algona Municipal Utilities and the Kossuth County Economic Development Corporation.
Revolving Loans Funds
Small Business Revolving Loan Fund
Formerly called the Retail Revolving Loan Fund, the City of Algona’s Small Business Revolving Loan Fund program provides financing up to $20,000, with a maximum term of five years. There are no job creation or wage requirements for the Small Business RLF.
City of Algona Commercial and Industrial Revolving Loan Fund
This program provides financial assistance to encourage new business start-ups, expansion of existing businesses, and the relocation of out-of-state businesses to Algona. Funds may be used for the acquisition, construction, reconstruction, or installation of commercial or industrial buildings, structures, and other real property; acquisition of equipment and machinery; reuse of vacant or abandoned facilities; modernization of plant equipment or machinery; and product development and marketing.
This fund is closely tied to employment, requiring the creation of five or more permanent full-time jobs (with an average wage of at least 100% of Low-to-Moderate Income wage rate) or a minimum ratio of one permanent full-time job created or retained for every $10,000 in assistance. City RLF funds cannot exceed more than 25% of the total project cost. Contact City Hall at 515-295-2411 for more information.
Algona Municipal Utilities Revolving Loan Fund
Through the RLF, Algona Municipal Utilities (AMU) seeks to improve the quality of life by contributing to the long-term improvement in the economy, including job creation and retention, diversification of the economy, improving workforce skills, and upgrading infrastructure. The RLF provides financing from $5,000 to $175,000. Loan interest rates vary based on prime interest rate.
Kossuth County Economic Development Corporation Revolving Loan Fund
The Kossuth County Economic Development Corporation (KCEDC) RLF was established to encourage existing local and new businesses to expand by providing supplemental financing. This RLF supports growth of community industrial parks and entices business and industry to expand in Kossuth County. Generally, the term of the loan will not exceed 10 years and the loaned funds shall provide no more than 35% of the financing for any project up to a maximum of $50,000. To learn more, visit the KCEDC website or call (515) 295-7979.
Read more about business incentives and financing options here.