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Linked Investments for Tomorrow (LIFT) Program

This program was started in 2006 to replace the five existing LIFT programs (Focused Small Business, Horticulture and Alternative Crops, Rural Small Business, Value Added Agriculture, and Traditional Livestock) with one Small Business Linked Investments Program.

The Small Business Linked Investments Program injects capital into small businesses owned and operated by Iowa residents. One-half of the moneys invested are available for qualifying small businesses which are 51 percent or more owned, operated, and actively managed by one or more women, minority persons, or persons with disabilities.

How Does LIFT Work?

A lender submits applications through the treasurer’s website for those borrowers and businesses which the lender believes are eligible. If the application is approved by the treasurer’s office, the treasurer of state purchases a certificate of deposit from the lender at three percent below the 1-year Treasury bill rate. The minimum rate for the certificate of deposit shall be one percent. The lender makes the loan to the borrower and may charge the borrower up to, but no more than four percent, above the rate of the certificate of deposit. The term of each certificate of deposit cannot exceed one year, but may be renewed at the option of the treasurer on an annual basis for a total term of up to five years. The state does not guarantee the loan nor is the certificate of deposit collateral for the loan.

What are the LIFT Qualifications?

  • The combined net worth of the borrowers and owners of the business cannot exceed $750,000.
  • Existing small businesses must have annual gross sales of $2 million or less at the time of application.
  • The maximum amount of assistance that a borrower or business may receive is $200,000.
  • The loan may be used for the purchase of land, improvements, fixtures, machinery, inventory, supplies, equipment, information technology, licenses, patents, trademarks, or copyright fees and expenses.
  • Loan proceeds shall not be used to finance existing debt.
  • The business must be for-profit.
  • The borrower must not have received financial assistance from the LIFT program prior to July 1, 2006.
  • Home businesses must qualify for a tax deduction for that portion of the home used for business pursuant to regulations of the Internal Revenue Service.
  • Loan proceeds cannot be used for real estate investments, rental, leasing, or speculation.
  • Liquor, beer, and wine sales must not exceed twenty percent of annual sales for establishments holding a class "C" liquor license.
  • Borrowers cannot be delinquent in making child support payments or any other payments due the state.

    • Small business borrowers must contact their financial institution and complete the normal lending process. The lender may approve a loan for any amount or any duration, but LIFT will only provide up to $200,000, which may be renewed for up to five years through the LIFT program.

    Get More Information

    For more information, please contact:

    Treasurer of State Michael L. Fitzgerald
    LIFT Administration
    State Capitol Building, Room 114
    Des Moines, IA 50319

    Call: (515) 281-6878
    Fax: (515) 281-7562
    Email: lift@iowa.gov

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