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The city of Des Moines is offering a total of $100,000 in loans to small business owners who may be kickstarting or looking to grow their venture.
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The Small Business Impact Loan Program will provide financial assistance to small businesses without access to traditional funding sources such as bank loans to assist with everything from fresh coats of paint to site plan and inventory costs.
The program is part of the city’s new small business support center. Headed by two city staff members in the Development Services department, the resource is meant to help first-time business owners navigate city requirements such as zoning, licenses and permits, as well as connect local business owners with resources across the state.
Here’s what to know for business owners interested in applying for the program.
How does it work?
The loans will range from a minimum of $5,000 to a maximum of $20,000. The city has allocated $100,000 to the program in 2025.
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Repayment time could be between three to five years depending on the loan size and scope of the project, according to the city.
To apply, owners are required to have a business plan, a location, business insurance, cost estimates for the projects and tax history, according to the city.
The applicants also must show that they haven’t been able to access traditional funding such as a bank loan due to circumstances like limited credit history.
What can businesses use the loan money for?
The city lists several eligible uses for the loan including:
- Building renovations.
- Exterior improvements such as landscaping, fencing, and parking lot upgrades.
- Professional design services such as site plan and building permit costs.
- Inventory.
- Website development and design.
What businesses are ineligible?
The loans cannot be used to pay operational costs like rent and payroll or to pay existing debt. Businesses with more than 20 full-time employees also don’t qualify.
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Here are some of the businesses ineligible for the loan:
- Liquor and tobacco stores.
- Pawnshops.
- Chain stores.
- Home-based businesses unless they are moving into a brick-and-mortar.
- Schools.
- Religious institutions.
How to apply
Prospective applicants must first submit a pre-qualification form explaining the business and how they would use the funding. This will help city staff determine if the applicant is eligible for the loan before they fill out the application, according to city officials.
The city is accepting pre-qualification forms through Jan. 17. Applications for the loan will open on Feb. 1 and are due Feb. 28.
Both the pre-qualification forms and applications can be downloaded on the city’s website at and sent to [email protected].
How soon could the loans be awarded?
According to the city, here’s the timeline:
- Jan. 3 – 17: Pre-qualification form period.
- Jan. 18 – 31: City staff review pre-qualification forms and notify prospective applicants of eligibility.
- Feb. 1: Application window opens.
- Feb. 28: Applications due.
- March 1 – 14: Applications reviewed and scored by city staff.
- March 17: Businesses notified if they’ve been approved or denied.
Virginia Barreda is the Des Moines city government reporter for the Register. She can be reached at [email protected]. Follow her on Twitter at @vbarreda2.
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