The TSB Financial Assistance Program is designed to assist in the creation and expansion of Iowa small businesses that have an annual gross sales of $3 million and are at least 51 percent owned, operated and managed by women, minorities or persons with a disability. The business must be certified as a "Targeted Small Business" by the Iowa Department of Inspections and Appeals before applying for or receiving TSB funds.

Awards may be obtained in one of the following forms of assistance:

• Low-interest loans. Loans of up to $25,000 may be provided at interest rates of 0-5 percent, to be repaid in monthly installments over a five- to seven-year period. The first installment can be deferred for three months for a start-up business and one month for an existing business.

• Loan guarantees are available up to $40,000. Loan guarantees can cover up to 75 percent of a loan obtained from a bank or other conventional lender. The interest rate is at the discretion of the lender.

• In limited cases, equity grants - to be used to leverage other financing (SBA or conventional) - are available in amounts of up to $25,000.

TSB funds may be used to purchase equipment, acquire inventory, provide operating capital or to leverage additional funding.