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Home and Community-Based Revolving Loan Program

A Low-Interest, High-Impact Loan

The Home and Community-Based Services (HCBS) Revolving Loan Program Fund assists the development and expansion of facilities and infrastructure that provide health and wellness programs, health screenings, nutritional assessments, adult day services, respite services and congregate meals for low-income Iowans.

Loan Terms

  • The loans have an interest rate of 1 percent per annum and are fully amortizing with a maximum term of 20 years.

  • The minimum loan amount is $50,000, and the maximum amount is $1 million (subject to available funds).

  • The required debt service coverage ratio for the loans is 1.30 to 1.

  • The loans can be used for the construction loan and permanent financing.

  • IFA will hold the first mortgage on the property.

  • There are recorded affordability and transfer restrictions for the selected period of compliance. In other words, the owners must continue to provide the selected service to low-income individuals, and if the property is sold, the new owner must continue to serve this population as the selected service.

  • Each loan is underwritten by IFA staff.

Application Process

  • These loans are not competitive. Funding is provided to successful applicants as long as money is available. When money cycles back to IFA through the revolving loan process, additional loans will be made.

  • Because the process is not competitive, potential applicants may contact IFA at any time following the release of the application with questions. Staff will communicate with the applicants during the review of the application.

Detailed Program Rules

For the full set of program rules, including purpose, application procedures, and program guidelines, please download the rules packet.


Program Terms

For questions about the this program reach out to:

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