The Waverly Area Development Fund (WADF) has reduced the rate of a key business loan and is now offering a 4% fixed rate amortized over up to 10 years, a drop of two percentage points, according to city of Waverly Planning and Development Specialist Connie Tolan.
The WADF is a low-interest loan fund that offers gap financing for qualifying projects in Waverly, Shell Rock and Bremer County. The fund has been in existence for many years and has helped to finance many business start-ups and expansions, according to Tolan.
“The interest rate is reviewed at least annually by the board, and at their meeting in February the board voted to adjust the rate from 6% to 4% based on the current interest rate environment,†Tolan said.
This initiative aims to empower local businesses and stimulate economic growth by providing more accessible and affordable financing options, a news release stated.
WADF President Levi Epley said the goal is to provide businesses with the financial resources they need to grow in this area, according to the news release.
“By reducing interest rates, we hope to make it easier for entrepreneurs to access capital, create jobs, and drive long-term economic success,†Epley stated.
The fund complements funding from traditional lenders by filling gaps in financing, according to Tolan. Owner equity is also required in a project to qualify for a loan.
“Payments are amortized over 10 years, so at the end of that term the loan is repaid in full,†Tolan explained.
The new 4% interest rate will apply to qualifying loans through WADF’s loan fund, which is primarily intended to fill financing gaps for commercial, industrial and retail establishments in the Waverly, Shell Rock and Bremer County areas. Eligible borrowers can be from Waverly, Shell Rock, Denver, Frederika, Janesville, Plainfield, Readlyn, Sumner and Tripoli.
The funds may be used for various business-related expenses, including land and building acquisition, site preparation, construction, machinery and equipment purchases, renovations, and working capital. The stated purpose of this fund is to retain and create employment opportunities, leverage other public and private investments, facilitate economic growth, and encourage industrial, commercial and retail development in designated areas.
Local business owners and potential applicants can learn more about eligibility for the Waverly Area Development Fund 4% interest rate loan program by visiting or contacting Tolan, Waverly Area Economic Development, at 319-352-9210.
The Waverly Area Development Fund is dedicated to fostering economic prosperity by providing financial support and resources to local businesses and community projects through strategic investments and partnerships in the Waverly region.
