“Small business” is defined as a business with a net worth of $7 million or less (including affiliates) and average net profit after tax cannot exceed $2.5 million (average last two years). Business owners must be a U.S. citizen or resident alien with a green card.

Eligible Businesses

• Organized as for-profit businesses located in the state of Iowa.
• Start-up businesses as well as existing businesses are eligible to obtain financing through the 504 Loan Program.
• Business must have a net worth of $7 million or less (including affiliates) and average net profit after tax cannot exceed $2.5 million (average last two years).
• Business owners must be a U.S. citizen or resident alien with a green card.

Ineligible Businesses

• Not-for-profit businesses.
• Businesses engaged in any illegal activity.
• Businesses deriving more than one-third of gross annual revenue from legal gambling activities.
• Businesses primarily engaged in the business of lending (banks, finance companies, investment companies, life insurance companies).
• Passive businesses owned by developers and landlords that do not actively use or occupy the assets acquired or improved with the loan proceeds.
• Businesses principally engaged in teaching, instructing, counseling or indoctrinating religion or religious beliefs, whether in a religious or secular setting.