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Wellmark Blue Cross and Blue Shield has committed up to $5 million to four John Pappajohn Entrepreneurial Centers in Iowa to fund the startup of Iowa businesses. The $5 million is part of $25 million Wellmark pledged in 2002 designated for Iowa-based economic development opportunities. Venture projects will be identified, investigated and recommended by Pappajohn Centers in four locations at The University of Iowa, University of Northern Iowa, Iowa State University and North Iowa Area Community College (NIACC) to Equity Dynamics. Equity Dynamics, at no cost to Wellmark, will further review the recommended projects, perform the necessary financial due diligence and, if appropriate, approve funding. Funding ranges from $10,000 - $100,000 with a second note option for a total of $150,000 in funding per company. Wellmark will have the right to convert the loan to equity at a future date should they choose. The term of the loan will be for a period of up to five years with an interest rate of 7 percent. Wellmark seeks only Iowa based for-profit corporations. Since 2003, Wellmark has made over 60 venture capital investments in 34 communities throughout the state, including Cedar Rapids, Clinton, Davenport Ellsworth, Fairfield, Harlan, Hiawatha, Lake Mills, Mason City, Mt. Pleasant, Pella, Sheffield, Washington, and Waterloo, among others.
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