Financial Incentives

The following financial incentive programs are available through cooperative efforts of the State of Iowa, Fayette County, the City of Oelwein, OCAD, and local financial institutions.

Revolving Loan Fund


The City of Oelwein Revolving Loan Fund became available in October of 2007 to make monies available to help businesses in downtown Oelwein improve their properties, expand, land/building acquisitions and more. In 2015, a second fund was received from USDA to enhance the existing program and increase the capabilities of funding new and existing businesses. Applications are available at the OCAD office at 25 W. Charles Street.

 

Eligible Projects:

Any project, which will create permanent employment, diversification of the local economy, or increase to the local tax base in the City of Oelwein. Project activities which can be funded with the RLF funds include, but are not limited to: land acquisition, site preparation, building acquisition, building construction, building remodeling, machinery & equipment, furniture & amp; fixtures, and working capital for business start-up and expansion activities.

 

Eligible Applicants:

Applicants eligible for RLF funds include, but are not limited to: individuals, partnerships, businesses, corporations, and non-profit organizations in the City of Oelwein. Revolving loan funds cannot be used for refinancing existing debt.

 

Application Procedure:

Applications for the RLF will be accepted by the Oelwein Chamber and Area Development office on a contuous basis. The Oelwein Loan Review Board will review completed applications within 30 days of receipt. Applicants will be formally notified of approval, contingency approval, or denial within 10 days of the review. To apply, applicants will need to submit an RLF/IRP applicaion along with an application fee to the address listed at the top of the front page of the application.

 

RLF Programs:

1) Finance special assessments for main street improvements. - No minimum loan amount. Maximum loan amount is $125,000. Interest is tied to the terms of the loan: 3% for up to 3 year loan, 4% for 4 year loan, 5% for 5 year loan. Term of loan not to exceed five years. No application fee.

 

2) Finance façade improvements - Loans are $1,000 - $25,000. Interest rate is 1% for a one year loan, 2% for a loan two - five years. Term of loan not to exceed five years. Applicant must hold title to the property. No application fee.

 

3) Make loans to starting and expanding businesses and community projects - Loans are $5,000 - $125,000. Interest rate is 0% - 8%. Terms of loan are not to exceed five years with potential for balloon loans. The project must have at least 10% equity. Priority given for job creation. Bank denial letter must accompany application. Application fee is $100.

 

4) Loans are up to $50,000. Interest rate is 2%. Terms of loan are not to exceed 24 months with interest only payments. Application fee is $100. A one percent (1%) loan origination shall be waived. Loan funds must be for labor and materials to rehabilitate and resell qualified distressed property.

 

Intake for loan applicants through the Oelwein Chamber and Area Development office. Loans approved through the City of Oelwein RLF Board.

 

Non-discrimination Statement

"This institution is an equal opportunity provider and employer."

If you wish to file a Civil Rights program complaint of discrimination, complete the USDA Program Discrimination Complaint Form, found online at http://www.ascr.usda.gov/complainfilingcust.html, or at any USDA office, or call (866)632-9992 to request the form. You may also write a letter containing all of the information requested in the form. Send your completed complaint form or letter to us by mail at U.S. Department of Agriculture, director, Office of Adjudication, 1400 Independence Avenue, S. W., Washington, D.C. 20250-9410, by fax *202)690-7442 or email at This email address is being protected from spambots. You need JavaScript enabled to view it..

 


Downtown businesses can be successfully remodeled using available loan funds.

Loan Pools were created to encourage business in Oelwein and improvement of existing Oelwein business buildings. Please check with local banks for current rates on the loans they offer.

 

Full disclosure of rules, regulations, application requirements, necessary documentation and other details of the program are contained in the application. Approved borrowers will be subject to other requirements also listed on the application. There is a 60-day limit to close on approved loans. If the applicant cannot close on the loan within 60 days of approval, the business may request an extension.

 

 

 


Tax Abatement

Assistance to industry in the form of property tax abatement over a 3-5 year period, to be used for new construction or property improvement. Qualifications are determined by actual facility investment.

Urban Renewal Program
Incentives to build or remodel residential or business property.

Enterprise Zones - The City of Oelwein works with the Fayette County Enterprise Zone Commission and the State of Iowa to provide building assistance in certain approved areas.

Fayette County has two revolving loan funds available to small business
1.) Job creation oriented loans offer $8,000 to $9,000 in incentives per job created. 2.) Non-job creation oriented loans.

State of Iowa New Jobs and Income Program (NJIP)
Assistance to increase job training for value-added production or service in Iowa through extended property tax abatement and additional state corporate income tax credits. Qualify by creation of at least 50 new production jobs with a median wage that changes quarterly plus a $3 million capital investment.

State of Iowa Industrial New Jobs Training Program
Assistance in the form of reimbursement of trainees and trainers wages, travel, materials. To be used as job training only. Qualifications are based on the number of jobs created and annual payroll over 3 years.

State of Iowa Community Economic Betterment Account (CEBA)
Assistance in the form of low interest, no interest or forgivable loans. Estimate of $3,000 per job created. To be used for fixed assets and/or for working capital. A certain wage is required for each new job created, changing quarterly.

State of Iowa Income Job Tax Credit
State income tax credit of $1,422 per job created. To be used in hiring new Iowa workers. Credit against state form; can carry forward up to 7 years.

SBA 504 Loan Program
40% of total project cost, Second Lien. Can be used for land, buildings, and certain equipment. For businesses employing less than 500.

Rail/RISE Economic Development Program
80% of infrastructure construction costs, up to $100,000 maximum. Use for rail or road extensions or improvements. Need to be filed by the city; 30-45 days review process.

Iowa Corn Value-Added Grants

Iowa Corn Promotion Board (ICPB) is reactivating its Value-Added Grant Program to offer assistance to farmer-owned coopertives, businesses, groups and individuals interested in establishing value-added corn-based businesses. For information, visit their website at www.iowacorn.org.

 


 

Housing Incentives

Application for Tax Abatement
Under The Urban Revitalization Plan For The City Of Oelwein, Iowa Residential Revitalization Area

All real estate assessed as residential property; assessed as commercial property, if the commercial property consists of three or more separate living quarters with at least 75% of the space used for residential purposes; or assessed as multi-residential property, is eligible to receive a partial exemption from taxation on the actual value added by new construction or improvements. The exemption is for a period of five years and is applicable to the first $75,000 of value added.

Assessed value added must exceed $10,000 for all remodels in order to be eligible for a tax abatement.

New construction applicants are also eligible for 90 percent reimbursement of city property taxes. Value added must exceed $75,000 for the city reimbursement portion. Applicants will pay their city taxes then be reimbursed by bringing in a receipt to City Hall.

Applications must be turned in to City Hall in the month of January. All properties started after January 1, 2017 may apply for the tax abatement. Applicants are encouraged to apply for the abatement the January after they start construction. Applications are only accepted in the month of January each year.

The Oelwein Residential Tax Abatement runs from January of 2018 to January of 2022. The tax abatement lasts for 5 years per application. The tax abatement will stay with the property regardless of the owner.

Estimates for Abatement/ Reimbursement*
Type Assessed Value Added Tax Abatement City Reimbursement Total Five Year Savings
Remodel $10,000 $1,100 $0 $1,100
Remodel $25,000 $2,750 $0 $2,750
Remodel $75,000 $8,272 $0 $8,272
New Construction $250,000 $8,272 $7,940 $16,212
New Construction $350,000 $8,272 $12,477 $20,749
New Construction $450,000 $8,272 $17,014 $25,286

*Estimates based on 2016 County/City Tax Rates, Actuals Will Vary

Name of Applicant:                                                                                                                                                                        

Address of Property:                                                                                                                                                                      

Legal Description of Property:                                                                                                                                                    

Address of Applicant (if different from above):                                                                                                                   

Phone Number (to be reached during day):                                                                                                                         

Email contact:______________________________________________________________________________

Type of Property:                                               Single-family Residential          Commercial or multi-residential

Type of Project:                                                  New Construction
                                                                               
                                                                               
  Improvements

Specify details of construction or improvements:                                                                                                              
                                                                                                                                                                                                               
                                                                                                                                                                                                               

Estimated or Actual Date of Completion:                                                                                                                              

Date                                                                                                                                                                                                     
                                                                                                                Signature of Applicant

CITY COUNCIL ACTION:

Application:    Approved           Disapproved

(Reason if disapproved)                                                                                                                                                                

City Clerk                                                                                             Date                                                                                     

ASSESSOR ACTION:

Application:    Approved           Disapproved

Present Assessed Value $                                                             Assessed Value w/Improvements $                         

Assessor                                                                                              Date                                                                                      

 

(NOTE: Projects must meet Eligibility Requirements established by the City of Oelwein and/or Fayette County Enterprise Zone Commission. Prior approval must be determined prior to construction. This is for information use only. Phone 319-283-1105 to find out how to apply for benefits.)



For a confidential assessment of potential incentives for your proposed building project, relocation or expansion, please contact:

 

Deb Howard, 

Executive Director

Oelwein Chamber & Area Development

25 West Charles, Oelwein IA 50662

319-283-1105

Email: This email address is being protected from spambots. You need JavaScript enabled to view it.



Iowa Department of Economic Development
www.iowalifechanging.com
1-800-245-IOWA
for more information about qualifications
and availability of state programs

Fayette County Economic Development
www.fayettecountyia.com
Sam Whitehead, Executive Director
563-422-5073
This email address is being protected from spambots. You need JavaScript enabled to view it.
for more information about Fayette County programs

City of Oelwein
www.cityofoelwein.org
Mayor, Peggy Sherrets - This email address is being protected from spambots. You need JavaScript enabled to view it.
City Administrator, Dylan Mulfinger - This email address is being protected from spambots. You need JavaScript enabled to view it.

319-283-5440

 

 

 

 

Oelwein Chamber

Oelwein was named "Hub City" because of the rail lines coming into town and the repair shops located there.

Deb Howard

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  This email address is being protected from spambots. You need JavaScript enabled to view it.
  319.283.1105
  319.283.2890
  25 West Charles St. Oelwein, Iowa 50662