Small Business Owners of West Des Moines now have another resource to expand operations. A new program is being created and it is termed as ‘Targeted Small Business Program’. This program will offer loans ranging up-to $5,000 and $20,000. With this financial support it is possible for entrepreneurs to expand operations or relocate within the city.
West Des Moines Development connection is a wing of West Des Moines Chamber of Commerce and it announced to contribute $50,000 toward the program. The city council also made a one time approval of $50,000 toward the program. The development connection shall also use repayments made by businesses to make future loans.
The loans made are meant to fill in gaps. So, business owners can rely on it to overcome their shortcomings when it comes to financing their enterprise. It helps to bridge gap between total project cost and the individual contribution from the owner’s end. This fund also eases money flow and is unlike conventional loans where lending norms are stringent.
It is, however, essential that a business owner makes 51 percent contribution to a project cost. This will put the lender’s mind at ease as then they can be sure that the borrower has the capacity to make repayments of rest of the granted amount.
This new program is definitely going to help businesses grow and expand. The program shall be available to companies having 150 or fewer employees located in West Des Moines area.
Once the money is received, it can be used to make purchases of property in the form of land, buildings and materials. It can also be used to buy machinery and meet training expenses of employees.
This article was submitted by Raj Tulshan, Director of Business Development of Biz2Credit. Biz2Credit is a small business marketplace that connects entrepreneurs with financing options and advice to grow their business. Send all questions to firstname.lastname@example.org