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Financial Assistance Programs
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Financial Assistance Programs
Business Development Incentives
Community Economic Betterment Account – CEBA
The CEBA program provides financial assistance to companies that create new employment opportunities and/or retain existing jobs, and make new capital investment in Iowa. This assistance is intended for new businesses getting off the ground, the expansion or maintenance of existing businesses, and as an incentive to attract out-of-state business to the State of Iowa.
Assistance is provided in the form of loans or forgivable loans. After giving consideration to the creation and type of employment contributions the business makes to the state or its community and other aspects, the applicant may be eligible for assistance of up to $1 million. For corporations with employee pay scales in line with the standards of their city or town, applications can be completed through the town, city, or a community college.
Economic Development Set-Aside Program – EDSA
The EDSA program provides financial assistance to companies that create quality employment opportunities in low- and middle-income areas. This assistance is intended for new businesses getting off the ground, the expansion or maintenance of existing businesses, and as an incentive to attract out-of-state business to the State of Iowa. Corporations applying for EDSA assistance must have plans to establish businesses in towns in Iowa with populations of less than 50,000.
Assistance is provided in the form of loans or forgivable loans. The EDSA program can provide assistance up to $1million. For companies with employee pay scales in line with the standards of their county, applications can be completed through the city or county.
Value-Added Agricultural Products and Processes Financial Assistance Program – VAAPFAP
This program provides assistance for new and existing businesses in projects that use Iowa agricultural commodities to produce higher-value products that are not commonly produced in Iowa, or develop renewable fuel production facilities that yield co-products (such as biodiesel from soybeans or ethanol from corn).
Assistance is available as direct loans or forgivable loans.
Tax Exemptions and Incentives
Enterprise Zone Benefits
Enterprise Zones are designed to stimulate development by targeting economically distressed areas in Iowa. For corporations with advanced business plans, the state is increasing the levels of property and state tax exemption.
A corporation receiving such benefits must be committed to making the minimum qualifying investment of $500,000 over a three year period, fortifying regional employee wage and benefit packages, and creating at least 10 full-time jobs over a three year period.
High Quality Job Creation Program
Entrepreneurial Assistance Programs
Entrepreneurial Ventures Assistance Program – EVA
EVA fosters and supports the development of venture companies where the focus is on technology, in the interest of realizing high growth.
When applying for assistance, it is necessary to determine the capital required based on a specific business plan. Further, venture companies must have their development curriculum completed, or have equivalent experience.
Venture Network of Iowa – VNI
VNI aims to inspire business activity throughout Io through the provision of a forum once every two months to act as a catalyst for investors, entrepreneurs and business advisors. At the VNI forums, ideas for new businesses or products presented by Iowa entrepreneurs are transmitted over an optic fiber cable network to interested investors in the aim to promote information exchange with venture capitalists.
The same information is transmitted simultaneously to remote areas in the state by the Iowa Department of Economic Development (IDED).
Infrastructure Assistance Programs
Physical Infrastructure Assistance Program – PIAP
The PIAP is designed to financially assist capital-intensive infrastructure projects that create unique opportunities for quality, high-wage jobs and demonstrate a statewide impact. Both Iowa communities and new or existing businesses are eligible for this innovative program.
PIAP is designed to take a comprehensive approach to address a wide variety of critical infrastructure needs. This program may also be used to remediate contaminated sites that have potential development opportunities contingent on the cleanup. Assistance is provided in the form of loans, forgivable loans and cost indemnification agreements.
Public Facilities Set-Aside Program – PFSA
The PFSA program provides financial assistance to cities with less than 50,000 in population and to counties for public infrastructure improvements that enable businesses to create new job opportunities. Projects that will create manufacturing jobs, add value to Iowa resources and/or increase out-of-state exports will be given priority.
Eligible projects include adding or improving sanitary sewer systems, water systems, streets, roads, railway and airport improvement, and construction.
Rail Economic Development Program
The Iowa Department of Transportation, in order to help create new employment opportunities and maintain employment in the vital railroad industry, provides support to new and existing companies that lay down new track or revitalize existing lines.
Revitalize Iowa’s Sound Economy – RISE
This program falls under the jurisdiction of the Iowa Department of Transportation, and was established to provide assistance to companies that work to improve city, county and state roads. This includes the support of new business development and assisting existing businesses in developing regional areas. The amount of support provided will be determined based on consideration of economic feasibility and probable effects.
Additional funding may be available from the federal and state governments, regional autonomies and private businesses for regional roads or for standardizing road quality. Assistance is available as a line of credit or an ordinary loan.
Additional IDED Services
In addition to the aforementioned services, the IDED provides information on other services that may benefit your business. Our support comes not only from IDED, but also from other bureaus, regional autonomies, county support systems of Iowa State and the federal government.
Further, IDED works to meet the needs of all businesses, cooperating with small corporations around the country, providing businesses with resources necessary to start operations, supporting the U.S. Department of Agriculture, filing for qualification tests, and a host of other services to help you.
If your business would like to know more about any of these original services, you may contact us at the phone number on the next page, or access the website.
IDED hopes that through the provision of all possible privileges, we have a service that will prove useful for your business.