Implementation of the plan begins with capitalization of a pool of funds, followed by near equity and conventional loans and technical assistance to area small businesses.

Capitalization

Cedar Valley Growth Fund I, Inc. will be capitalized initially through contributions.

• Contributions – As an IRS Section 501(c)(3) not-for-profit corporation, qualifying contributions to the CVGFI fund are deductible for federal and state tax purposes. Please consult your tax preparer for additional advice.

Small Business Assistance

Cedar Valley Growth Fund I, Inc. will use the funds garnered to capitalize a revolving loan fund that will make near equity and conventional rate loans. The interest received on the loans will be used to provide technical assistance to area small businesses and to increase the funds within the revolving loan funds and for CVGFI administration.

• Loans – It is anticipated that the typical CVGFI loan to an area small business will be less than $50,000, at near market rate interest, and for a term of one to five years. As each business is unique, the actual terms may vary depending upon the circumstances.

• Technical assistance – The type and amount of technical assistance may vary, based upon the immediate needs of the business. Technical assistance will be provided free or at a nominal cost to the small business by area professionals in fields such as accounting, marketing, manufacturing, etc. with CVGFI essentially subsidizing the majority of the cost.

<The Plan Goals>