Enterprise Zones!allow for partial real estate tax exemptions over a 10-year schedule.!New
construction qualifies for the tax exemption, as does renovation work that increases the actual value of
commercial and industrial property by 15%.
!
The schedule of partial tax exemptions is as follows:
1st year!!!!!!! 80% exempt
2nd year!!!!!! 70% exempt
3rd year!!!!!!! 60% exempt
4th year!!!!!!! 50% exempt
5th year!!!!!!! 40% exempt
6th year!!!!!!! 40% exempt
7th year!!!!!!! 30% exempt
8th year!!!!!!! 30% exempt
9th year!!!!!!! 20%exempt
10th year!!!!!!20% exempt
Small Business Forgivable Loan The City of Muscatine offers a Small Business Forgivable Loans for
building improvements and startup cost associated with the creation of a new business or to existing
businesses significantly expanding into a new market, product or service.!
Businesses can obtain a loan for up to $25,000 for the business at a term of 5 years with 20% of the
original loan forgiven annually at the anniversary of the origination of the loan. Funds are allocated up
to $15,000 for startup cost and up to $10,000 for code compliance.!Businesses receiving funding must
be new businesses or be significantly expanding business operations to be eligible. Applicant must meet
1:1 requirements of applicant investment versus grant funding. This may be waived in whole or in part
by the City Administrator upon recommendation of the review committee. Inventory is not an eligible
grant funded expense but does count toward match.!
The City has allocated $100,000 in funding annually. Funds will be awarded to qualifying businesses
based on availability of funds. More information and application forms can be found by visiting
www.muscatineiowa.gov/smallbusinessforgivableloan.
Building Improvements Loan Program the City of Muscatine and three local banks, Central State
Bank, First National Bank of Muscatine, and Community Bank and Trust, have partnered to launch a
new loan program to assist property owners in Muscatine's downtown to make improvements to their
buildings and properties. The local banks are committed to the City of Muscatine's downtown and have
set aside $1,000,000 for this loan program.
Property owners will first work with City of Muscatine staff to detail the improvements to be completed
with a building improvement plan. With the City's approval, applicants can approach the three lending
institutions to secure funds for their improvement project. Loans will receive a fixed rate at 1% below
prime for the first three years with a variable adjustable rate thereafter for a term no longer than 10
years. The initial district for these loans will run 12 City blocks. The loans will be a minimum of $5,000,
and borrowers will still be subject to the banks normal credit standards.
Most improvements are eligible; however, there are some improvements that are ineligible such as no
signage, inventory or modifications that take away from the historic character of the property and
historic district. More information and application forms can be found by visiting
www.muscatineiowa.gov/924/building-improvements-loan-program.