A presentation from the Iowa Business Growth Company, which helps bring capital to communities that have formerly had inadequate access to capital, and compensates investors for perceived risks of investing in low-income communities. An overview of the various businesses and programs that have been impacted by the company so far.

1. Iowa Business Growth
Company
5409 NW 88th Street
Johnston, Iowa 50161
515-223-4511
dan@iowabusinessgrowth.co

2. Who/What is Iowa Business Growth
Company???
A For-Profit, Certified Development Company est. 1981
Market, Package and Service the SBA 504 Loan Program
Outstanding portfolio - $108.4 million
304 outstanding loans
Territory is Iowa
Market, Structure and Service New Markets Tax Credit projects2

3. New Markets Tax Credits

4. Program Overview
Bringing capital to
communities that have
had inadequate access
to capital
And/or

5. Program Overview
Designed to compensate
Investors for perceived
risk of investing in Low-
income communities

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7. Project Big Bird
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Impacts:
• 34.2% poverty rate
• Unemployment 1.79 times national average
• Median income 50.7% of area median income
• Economic Development Hot Zone
• Project cost: $10 million
• 320 direct jobs
• NMTC allocation: $10 million

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9. Pinnacle Foods
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Impacts:
• 16.7% poverty rate
• Unemployment 1.29 times national average
• Median income 74% of area median income
• Rural
• Project cost: $40 million
• 65 direct jobs
• NMTC allocation: $10 million
• Additional Community Benefit: $175,000

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Wright on the Park - Before

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Wright on the Park - After

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15. Wright on the Park, Mason City
Renovation of former bank building and hotel designed by Frank Lloyd
Wright. Will be used as a boutique hotel, restaurant, and conference
center.
Project size: $18.9 million
2008 ICD NMTC Allocation used: $10 million
Investor: US Bank
Project Construction
Direct Jobs 11 25
$1.47 million of the benefit will go to a Mason City Foundation for support15

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17. Winegard Company
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Impacts:
• 24.6% poverty rate
• Unemployment 1.7 times national average
• Median income 69.3% of area median income
• Rural
• Project cost: $17 million
• 70 direct jobs
• NMTC allocation: $12 million
• Additional Community Benefit: $400,000

18. CRST
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19. CRST
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Impacts:
42.4% poverty rate
Median income 52.1% of area median income
Project cost: $43.8 million
953 direct jobs
NMTC allocation: $ 15.8 million
Additional Community Benefit: $290,000

20. Dubuque “Pre-NMTCs”
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28. Dubuque an example of a
“New Market” Community
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35. Roshek Building Redevelopment in
Dubuque
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38. Impacts:
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• 24.9% poverty rate
• Unemployment 1.52 times national average
• Median income 53.3% of area median
income
• Economic Development Hot Zone
• Project cost: $38.9 million
• 1,300 direct jobs
• NMTC allocation: $10 million
• Additional Community Benefit: $589,000

39. Program Overview
$10 million dollar Project will produce 39% tax Credit
($10,000,000 * 39% = $3,900,000)
$3.9 million dollar tax credit converts into cash at 85¢
($3,900,000 * .85¢ = $3,315,000)
Transaction costs vary but typically can reach $400,000
($3,315,000 - $400,000 = $2,915,000)
Economic Benefit = $2,915,000
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40. Program Overview
$30 million dollar Project will produce 39% tax Credit
($30,000,000 * 39% = $11,700,000)
$11.7 million dollar tax credit converts into cash at 85¢
($11,700,000 * .85¢ = $9,945,000)
Transaction costs vary but typically can reach $400,000
($9,945,000 - $800,000 = $9,145,000)
Economic Benefit = $9,145,000
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41. Community Development Entities
(CDEs):
CDEs must:
Have a primary mission of serving low-income communities
or low-income persons;
Maintain accountability to residents of low-income
communities through their representation on any governing
board or advisory board;
Must be certified by the CDFI Fund division of the Treasury.

42. Recent History of Program
“Availability/Request”
December 21, 2000
Congress enacts the NMTC as a part of the Community Renewal Tax Relief Act of
2000.
2010 Allocation
$3.5 Billion available, $23.5 Billion requested (6.7 times available allocation)
2011 Allocation
$3.5 Billion available, $26.7 Billion requested (7.6 times available allocation)
2012 Allocation
$3.5 Billion Available, $21.9 Billion requested (6.3 times available allocation)

43. Characteristics of the
Allocatees:
2006
$4.1 Billion available
254 CDEs applied – 63 awarded allocation (24.8%)
Average Award was $65 million
2008
$3.5 Billion available
239 CDEs applied – 70 awarded allocation (29.3%)
Average Award was $50 million
2009
$5 Billion available
249 CDEs applied – 99 awarded allocation (39.8%)
Average Award was $50 million

44. Low Income Communities
Census tracts where:
Poverty rate exceeds 20% or
Median income is below 80% of the greater of:
Statewide median income or
Metropolitan area median income.

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46. Iowa Community Development
5 time Allocatee of New Market Tax Credits
2006 - $45 million Award
2008 - $50 million Award
2009 - $70 million Award
2010 - $35 million Award
2013 - $45 million Award
18 Projects
Communities served
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47. Iowa Community Development
-Status of Allocations
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48. Iowa
Business
Growth
Company
Thank you!
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