Loan Participation Program for Manufacturing 4. 0 Investments is sponsored by Iowa Economic Development Authority. This program helps Iowa manufacturers invest in new technologies transforming the industry, including those related to AI and advanced manufacturing.

It is part of a larger initiative supporting early-stage startup companies in biosciences, advanced manufacturing, and information technology.

The State Small Business Credit Initiative (SSBCI) is a $96 million investment in growing Iowa’s small businesses, startups, and manufacturers. The funding is available through the U.S. Treasury Department’s SSBCI, a small business aid program that was expanded through the federal American Rescue Plan Act.

Iowa’s SSBCI dollars will focus on encouraging venture capital and investment in scalable innovation companies through multiple programs including the Small Business Collateral Support Program. Iowa Manufacturing 4. 0 Loan Participation Program The Iowa Economic Development Authority (IEDA) is partnering with lenders throughout Iowa to assist manufacturers making the transition to Industry 4.

0 technologies. The Manufacturing 4. 0 Loan Participation Program (LPP) will help offset the risk for Iowa’s lenders in extending capital for manufacturers seeking to compete in a new digital world.

$10 million has been allocated to assist Iowa manufacturers in investing in innovative technologies and revolutionizing the sector. The state will cover a portion of the loan, helping to reduce the risk for lenders. The Iowa Economic Development Authority (IEDA) is partnering with lenders throughout Iowa to assist manufacturers making the transition to Industry 4.

0 technologies. The Manufacturing 4. 0 Loan Participation Program (LPP) will help offset the risk for Iowa’s lenders in extending capital for manufacturers seeking to compete in a new digital world.

$10 million has been allocated to assist Iowa manufacturers in investing in innovative technologies and revolutionizing the sector. The state will cover a portion of the loan, helping to reduce the risk for lenders. Manufacturers interested in the program should contact a commercial lender directly to inquire about using the Manufacturing 4.

0 LLP as a lending option for them when making an investment in Manufacturing 4. 0 technologies. The lender will originate the loan and determine all loan terms with the borrower.

Once terms are agreed upon, the lender can apply on behalf of the borrow and request up to 20% participation in a loan through the state’s Manufacturing 4. 0 LLP.

To be eligible for loan participation, Iowa manufacturers must meet the following requirements: Incorporated or authorized to do business in Iowa Derive a minimum of 51% of their revenue from the sale of manufactured goods, or via a contribution to automation activities Must have less than 500 employees across all locations and divisions Cannot earn any portion of revenue from lending activities Priority given to companies with a NAICS codes falling between 31-33 Must meet other criteria outlined in the application by the lender and/or U.S. Treasury requirements How can the funds be used?

Acquiring Industry 4. 0 fixed asset equipment such as: Specialized equipment for automation Collaborative robotics and equipment for process improvements Acquiring Software assets required to implement Industry 4.

0 technology such as: The implementation of Industrial Internet of Things (IIoT) Predictive maintenance software Industrial wearable technology for injury prevention Data visualization software Construction or renovations of owner-occupied real estate to support Industry 4. 0 equipment installation How will manufacturers access the program? Manufacturers will be encouraged to contact their current lender and ask about the program.

Alternatively, lenders may promote the program if they are already a participating lender. IEDA will also hold a list of currently participating lenders and can provide the list to manufacturers inquiring about the program. Information about the program and its benefits will also be available to lenders on IEDA’s Manufacturing 4.

0 website . This program is offered on a first-come, first-served basis to qualified Iowa manufacturers until funds are no longer available. However, as loans are repaid, funds will be recycled back into the program.

Once a lender is approved, the lender will apply for loan participation on behalf of the applicant. The minimum request allowable is $20,000 or 20% of a $100,000 loan. The maximum request allowable is $2 million or 20% of a $10 million loan.

The loan application and loan participation request will be reviewed and analyzed by the Manufacturing 4. 0 Review Committee. Once the participation level requested by the lender has been approved by IEDA, a participation certificate will be issued to the lender for inclusion in the final loan closing documents.

Who qualifies as a lender?

A depository institution, insured credit union or community development financial institution which is experienced in the making of loans to businesses of the type provided under the State Small Business Credit Initiative (SSBCI) regulations, has a physical office in the state of Iowa, and is regulated by the Iowa Division of Banking, the Federal Reserve Board, Iowa Finance Authority, Iowa Division of Credit Unions, or similar regulatory agency.

All terms and fees are established by the lender Collateral support cannot be provided for SBA7 (a) or SBA 504 loans Participating lenders are responsible for their own credit underwriting decision and loan originations An approved Lender Participation Agreement must be on file with IEDA to participate in/apply on behalf of an applicant to the program Small Business Qualified Lenders To learn more about the Manufacturing 4.

0 Loan Participation Program, or to become a participating lender, contact: Anna Lensing | (515) 348 – 6199 | anna. lensing@iowaeda. com Iowa Manufacturing 4.

0 Website Manufacturing 4. 0 Fact Sheet Small Business Qualified Lenders Small Business Collateral Support Program Through the Small Business Collateral Support Program, $15 million is available through the state of Iowa to provide businesses up to 40% of a collateral gap needed to secure a loan through a commercial lender for loans ranging in size of $50,000 to $250,000.

Once a lender is approved, the lender will apply for collateral support on behalf of the applicant. The application will be reviewed by the Small Business Loan Review committee. If approved, certifications and covenants will be executed before the state deposits the collateral funds at the lending institution.

The state will only provide the gap assistance needed to secure the loan based on the lender’s analysis of the collateral shortfall.

To be eligible for collateral support, businesses/business owners must meet the following criteria: Located in the state of Iowa Have an average gross business income of less than $4 million, computed as an average of the preceding three fiscal years Must have a credit score above 600 Must have less than 125 employees across all locations and divisions Cannot earn a portion of revenue from lending activities Must meet other criteria outlined in the application by the lender and/or U.S. Treasury requirements How can the funds be used?

Generate more working capital Marketing and advertising Specific operating expenses Once a lender is approved, the lender will apply for collateral support on behalf of the applicant. The application will be reviewed by the Small Business Loan Review committee. If approved, certifications and covenants will be executed before the state deposits the collateral funds at the lending institution.

The state will only provide the gap assistance needed to secure the loan based on the lender’s analysis of the collateral shortfall.

Small Business Collateral Support Program Approved Providers A depository institution, insured credit union or community development financial institution which is experienced in the making of loans to businesses of the type provided under the State Small Business Credit Initiative (SSBCI) regulations, has a physical office in the state of Iowa, and is regulated by the Iowa Division of Banking, the Federal Reserve Board, Iowa Finance Authority, Iowa Division of Credit Unions, or similar regulatory agency.

All terms and fees are established by the lender Collateral support cannot be provided for SBA7 (a) or SBA 504 loans Participating lenders are responsible for their own credit underwriting decision and loan originations An approved Lender Participation Agreement must be on file with IEDA to participate in/apply on behalf of an applicant to the program Small Business Collateral Support Program Approved Providers To learn more about this program or to become a Participating Lender, contact: Small Business Collateral Support Fact Sheet Small Business Collateral Support Program Approved Providers Venture Capital Innovation Fund Program The Iowa Innovation Continuum Provides a range of funding to help entrepreneurs overcome the principal challenges of launching new start-ups that leverage discoveries and talent at Iowa’s world-class public and private research universities, accelerator, and incubator programs and organizations.

The program seeks to accelerate the growth of companies, significantly expand Iowa’s targeted innovation clusters and bolster private capital investment in Iowa’s innovative companies.

The Iowa Innovation Continuum Provides a range of funding to help entrepreneurs overcome the principal challenges of launching new start-ups that leverage discoveries and talent at Iowa’s world-class public and private research universities, accelerator, and incubator programs and organizations.

The program seeks to accelerate the growth of companies, significantly expand Iowa’s targeted innovation clusters and bolster private capital investment in Iowa’s innovative companies.

The Innovation Continuum consists of five funds that companies may apply for: Proof of Commercial Relevance (POCR) Demonstration Fund (Demo) Iowa Innovation Acceleration Launch Fund Iowa Innovation Acceleration Propel Fund Iowa Innovation Acceleration Expansion Fund Awards are made in the form of royalty agreements, or low interest loans.

To be eligible for innovation continuum funding companies must: Be an Iowa-based company commercializing innovative technology solutions in the information technology, advanced manufacturing, or bioscience sectors, legally formed and registered with the Iowa Secretary of State Have less than 500 employees Have a commitment to commercialize proprietary produt(s) in advanced manufacturing, bioscience or information technology industries Have a minimum of two co-founders/principals actively engaged in the business Meet specific criteria outlined in the application based on funding amount requested Meet private:public matching requirements Carefully review program summaries and guidelines to determine which program, of any, is an appropriate fit Contact VentureNet to request an application: innovation@iowaeda.

com Submit one electronic copy of the application form and all required attachments prior to application deadline VentureNet Iowa reviews applications and ensures compliance with program requirements VentureNet Iowa arranges a review panel for evaluation and feedback Applicant presents proposal to either the Technology Commercialization Committee (TCC) OR the State Small Business Credit Initiative (SSBCI) Committee at the discretion of program managers.

Committee can ask questions to develop a deeper understanding, then will use its best judgement to make a funding recommendation Applicants may be approved as submitted, approved subject to certain modifications or completion of due diligence, or denied To find out more about the Iowa Innovation Continuum or to request an application contact: Adrienne Greenwald | (515) 471 – 1300 | innovation@iowaeda.

com Venture Capital Innovation Program Fact Sheet Venture Capital Co-Investment Fund Program $40 million has been allocated to support early-stage startup companies in biosciences, advanced manufacturing, and information technology.

As the state’s first public venture capital fund, the Venture Capital Co-Investment Fund Program is uniquely positioned to bridge the funding gap for early-stage Iowa startups while spurring future innovation in industries where Iowa is naturally competitive. InnoVenture Iowa is an evergreen venture capital fund, built by (and for) Iowa entrepreneurs.

$40 million has been allocated to support early-stage startup companies in biosciences, advanced manufacturing, and information technology. As the state’s first public venture capital fund, the Venture Capital Co-Investment Fund Program is uniquely positioned to bridge the funding gap for early-stage Iowa startups while spurring future innovation in industries where Iowa is naturally competitive.

InnoVenture Iowa is an evergreen venture capital fund, built by (and for) Iowa entrepreneurs. Industry Focus: Biosciences, Advanced Manufacturing or Information Technology Iowa-Based Companies (Headquartered or Significant Operations) Co-Investment Partners: Private VC Funds, Businesses or Angel Investors Eligible companies must be headquartered, or have significant operations in Iowa.

InnoVenture Iowa seeks to represent 10-25% of fundraising rounds that span from $250,000 to $2 million. Companies seeking investment funding from InnoVenture Iowa should operate loosely within the industries of bioscience, advanced manufacturing or information technology, and will need to show a signed term sheet (from a lead investor) for consideration from the investment committee.

For additional information on the Venture Capital Co-Investment Fund Program, contact: hello@innoventureiowa. com | (515) 657 – 7318 Services for Manufacturing, Collateral Support and Venture Capital Programs The goal of these services is to enhance your business’s readiness, to secure funding, improve your financial literacy, and ultimately, support your long-term success and growth.

The State Small Business Credit Initiative (SSBCI) is a comprehensive program, contributing nearly $10 billion to bolster small businesses an foster entrepreneurship throughout the United States. Small Business Development Centers provide counseling and training to small businesses including working with SBA to develop and provide informational tools to support business start-ups and existing business expansion.

What role does the SBDC play with the SSBCI? Iowa SBDC is crucial in connecting SSBCI resources to underserved small businesses. The SBDC provides technical assistance and links eligible businesses to state small business loan and equity programs, helping them apply for SSBCI-funded capital.

To learn more, please request counseling. How much funding was awarded to Iowa? $96 million of this initiative is allocated to support Iowa’s small businesses, startups, and manufacturers.

Small Business Collateral Support Program The Iowa Economic Development Authority (IEDA) is committed to promoting economic growth and innovation in communities, and empowering small business owners to change their lives and make an impact in their community.

Through the Small Business Collateral Support Program, the state of Iowa can provide businesses up to 40% of a collateral gap needed to secure a loan through a commercial lender for loans ranging size of $50,000 to $250,000. Small Business Collateral Support Program Provider Agreement IEDA will offer collateral support up to 40% of the loan amount.

The state will only participate in the amount needed to secure the loan based on the lender’s analysis of collateral shortfalls. The average collateral support rate may be closer to 20%. Program Access for Small Businesses Small businesses will be encouraged to contact their current lender and ask about the program.

Alternatively, lenders may also promote the program if they are a participating lender in the program. Once the lender has evaluated the collateral of the borrower and any gaps that exist to securing the loan, the lender can apply for the program on behalf of the applicant for the remainder collateral amount needed to secure the loan.

The Small Business Collateral Support Program is offered on a first-come, first-served basis to qualified Iowa businesses until funds are no longer available, however, once loans are repaid, collateral deposits will be returned to the state and recycled back into the program. Responsibility for Setting the Loan Terms Participating lenders are responsible for their own credit underwriting decisions and loan originations.

IEDA ensures compliance with program requirements, approves the state’s collateral support level and reports to the U.S. Treasury based on information shared by the lender as required in the Provider Participation Agreement (PPA) that must be on file with IEDA to participate in the program. IEDA’s responsibility is to ensure compliance with U.S. Treasury collateral support requirements and reporting.

IEDA will review each participation agreement and collateral support application for compliance with SSBCI standards. IEDA may request additional information from the lender or borrower if necessary to approve applications. Standard reporting documentation will be provided to participating lenders, and an IEDA point of contact will request quarterly reporting data on any collateral support loans.

IEDA will market and promote the State Small Business Collateral Support Program to potential applicants and Iowa’s lending institutions. If approved for collateral support, IEDA will issue a participation certificate to the lender to be included in final loan closing documents, and IEDA will open a pledged collateral support account with the lender.

Lender's Responsibilities By signing the PPA, the lender will agree to service the loan and any collection on loan payments and remittance to the state’s purchased portion. The lender will agree to provide quarterly reports on collateral support loans using the standardized documentation provided by the state.

The lender will agree to notify the state, in writing, of any acceleration of payment under any of the loan documents; the commencement of any collection proceeding against the borrower or any co-guarantor or co-signer of the loan; the seizure, sale, transfer, assignment, foreclosure or attempt to exercise against any collateral securing the loan, any forbearance or similar arrangements or any written notice provided by the lender to the borrower, guarantor or other endorser of the loan.

The state will allow the lender to lead in attempt to recover assets and negotiate any excess recoveries because of its subordinate position. The state will not perform its own underwriting but may request more information from the lender before determining to provide collateral. The lender is notified of the decision, and if approved, prior to closing, IEDA will open a pledged collateral support account with the lender.

At loan closing, the lender will execute a collateral deposit agreement with IEDA, certifying that it has followed prudent underwriting loan processes and the collateral support was critical in the lender making the loan eligible. Funds are deposited into an account with the financial institution, pledged as additional support for the loan. Upon maturity, deposits are returned to IEDA for recycling to other qualified borrowers.

To be eligible for collateral support, businesses/business owners must meet the following requirements: Located in the state of Iowa Have an average gross business income of less than $4 million, computed as an average of the preceding three fiscal years Must have a credit score above 600 Must have less than 125 employees across all locations and divisions Cannot earn a portion of revenue from lending activities Must meet other criteria outlined in the application by the lender and/or U.S. Treasury Cannot have a principal or investee with 20% or more of the ownership stock or stock equivalent who has been convicted of a sex offense against a minor (as defined in section 111 of the Sex Offender Registration and Notification Act (42 U.S.C.

16911)) A depository institution, insured credit union or community development financial institution that is experienced in the making of loans to businesses of the type provided for under the SSBCI regulations The institution has a physical office in the state of Iowa and is regulated by the Iowa Division of Banking, the Federal Reserve Board, Iowa Finance Authority, Iowa Division of Credit Unions or similar regulatory agency The lender is in material compliance with all federal and state laws, rules and regulations Generate more working capital Marketing and advertising Specific operating expenses Paying off existing business or personal debt Passive or investment real estate activities Contributions to charities or non-profits Businesses may not be involved in the adult entertainment industry or be subject to any federal or state liens Purchase of farmland or farm equipment Eligible loans must meet a lender’s credit underwriting criteria SBA 7(a), SBA 504 and USDA loans are ineligible as are any loans that have a government guarentee Minimum loan requests allowable for collateral support are $50,000 Maximum loan requests for collateral support are $250,000 Participating lenders must always maintain at least a 20% interest in the loan Loans with maturities of one year or less will be assessed a 0.

5% fee of the amount of the state’s purchased participation on the loan Loans with maturities of one year to five years will be assessed a 1% fee of the amount of the state’s purchased portion of the loan Loans with maturities of five to ten years will be assessed a 1.

5% fee of the amount of the state’s purchased participation on the loan Iowa Small Business Collateral Support Program Fact Sheet Apply Now *please note this is a provider application to be filled out by a Commercial Lender (not a small business borrower) Questions? Contact: Anna Lensing | anna. lensing@iowaeda.

com | (515) 348 – 6199 Loan Participation Program for Manufacturing 4. 0 Investments The Iowa Economic Development Authority (IEDA) is partnering with lenders throughout Iowa to assist manufacturers in making the transition to Industry 4. 0 technologies.

The Manufacturing 4. 0 Loan Participation Program (LPP) will help offset the risk for Iowa’s lenders in extending capital for manufacturers seeking to compete in a new digital world. Through the U.S. Treasury State Small Business Credit Initiative (SSBCI), Iowa has allocated $10 million to the program.

Manufacturing 4. 0 Loan Provider Participation Agreement Once terms are agreed upon, the lender can apply on behalf of the borrower and request up to 20% participation in a loan through the Manufacturing 4. 0 Loan Participation Program.

Program Access for Manufacturers Manufacturers will be encouraged to contact their current lender to ask about the program. Alternatively, lenders may also promote the program if they are a participating lender in the program. IEDA will also hold a list of participating lenders and can provide the list to manufacturers inquiring about the program.

Information about the program and its benefits will also be available to lenders and manufacturers on IEDA’s Manufacturing 4. 0 website. The program is offered on a first-come, first-served basis to qualified Iowa manufacturers until funds are no longer available, however, as loans are repaid, funds will be recycled back into the program.

Responsibility for Setting the Loan Terms The participating lender will set all terms. Lenders are responsible for their own credit underwriting decisions and loan originations.

IEDA ensures compliance with the program requirements, manages the state’s participation level and reports to the U.S. Treasury based on information shared by the lender as required in the Provider Participation Agreement (PPA) that must be on file with the IEDA to participate in the program. IEDA’s responsibility is to ensure compliance with U.S. Treasury loan participation requirements and reporting.

IEDA will review each participation agreement and application for compliance with SSBCI standards. IEDA may request additional information from the lender or borrower if necessary to approve applications. Standard reporting documentation will be provided to participating lenders, and an IEDA point of contact will request quarterly reporting data on any LLP loans.

IEDA will market and promote the LLP to potential applicants and Iowa’s lending institutions. If approved for loan participation, IEDA will issue a participation certificate to the lender to be included in final loan closing documents. Once an application is approved, IEDA’s accounting team will work with the lender to disburse participation funds.

They will also be responsible for the collection of payment remitted to IEDA. Lender's Responsibilities By signing the PPA, the lender will agree to service the loan and any collection on loan payments and remittance to the state’s purchased portion. The lender will agree to provide quarterly reports on Manufacturing 4.

0 LPP loans using the standardized documentation provided by the state.

The lender will agree to notify the state, in writing, of any acceleration of payment under any of the loan documents; the commencement of any collection proceeding against the borrower or any co-guarantor or co-signer of the loan; the seizure, sale, transfer, assignment, foreclosure or attempt to exercise against any collateral securing the loan, any forbearance or similar arrangements or any written notice provided by the lender to the borrower, guarantor or other endorser of the loan.

The state will allow the lender to lead in the attempt to recover assets and negotiate any excess recoveries because of its subordinate position. IEDA’s percentage of the outstanding balance of the loan shall never exceed the amount stated in the final participation certificate issued as part of the loan closing documents.

Iowa for-profit manufacturers with a minimum of 51% of revenue from the sale of manufactured goods Implementing Industry 4.

0 technology or contributing to automation activities Employ 500 or fewer employees Cannot earn any portion of its revenue from the lending activities Must be in good standing with the Iowa Department of Revenue Cannot have a principal or investee with 20% or more of the ownership stock or stock equivalent who has been convicted of a sex offense against a minor (as defined in section 111 of the Sex Offender Registration and Notification Act (42 U.S.C.

16911)) A depository institution, insured credit union or community development financial institution that is experienced in the making of loans to businesses of the type provided for under the SSBCI regulations The institution has a physical office in the state of Iowa and is regulated by the Iowa Division of Banking, the Federal Reserve Board, Iowa Finance Authority, Iowa Division of Credit Unions or similar regulatory agency The lender is in material compliance with all federal and state laws, rules and regulations Acquiring Industry 4.

0 fixed asset equipment: Specialized equipment for automation Collaborative robotics and equipment for process improvements Acquiring software assets required to implement Industry 4.

0 technology: Implementation of Industrial Internet of Things (IIoT) Predictive maintenance software Industrial wearable technology for injury prevention Data visualization software Construction or renovations of owner-occupied real estate to support Industry 4.

0 equipment installation Eligible loans must meet a lender’s credit underwriting criteria SBA 7(a), SBA 504 and USDA loans are ineligible as are any loans that have a government guarentee Minimum loan requests allowable are $20,000 or 20% of a $100,000 loan Maximum requests are $2,000,000 or 20% of a $10,000,000 loan Maximum term is up to 20 years Terms loans with the possibility for balloon payment at the end of the amortization schedule are allowable under this program Participating lenders must always maintain at least a 20% interest in the loan Collateral requirements will be determined by lender.

At the time of loan inception, the lender and IEDA agree that an applicant’s collateral position will be equal (pari-passu) or subordinated to the lender in the event of default Loans with maturities of one year or less will be assessed a 0.

5% fee of the amount of the state’s purchased participation on the loan Loans with maturities of one year to five years will be assessed a 1% fee of the amount of the state’s purchased portion of the loan Loans with maturities of five to ten years will be assessed a 1.

5% fee of the amount of the state’s purchased participation on the loan Loans with maturities greater than ten years will be assessed a 2% fee of the amount of the state’s purchased participation on the loan Manufacturing 4. 0 Loan Participation Program Information for Lenders Manufacturing 4. 0 Loan Provider Participation Agreement Questions?

Contact: Anna Lensing | anna. lensing@iowaeda. com | (515) 348 – 6199 Make an Appointment with an SBDC Counselor Schedule an appointment with one of the SBDC counselors.

Our counselors are well versed in helping Iowan small businesses with the SSBCI resources and can offer you their expertise every step of the way. Iowa Economic Development US Department of Treasury 1805 Collaboration Place, Suite 1331 Ames, IA 50010 America’s SBDC Iowa is an outreach program of Iowa State University’s Ivy College of Business and the Office of Economic Development and Industry Relations.

Funded in part through a cooperative agreement with the U.S. Small Business Administration. Discrimination and Accessibility Policy