Please see the information below from our friends at the Iowa Lakes Corridor Development Corporation. Many new programs have been announced to help small businesses during these unprecedented times. We appreciate all of the Corridor's assistance in not just Spencer, but throughout the four county region on these efforts. Please be advised that deadlines are approaching for some of these programs.
Grants:
Iowa Economic Development Authority announces Small Business Relief Grants for businesses with 2 – 25 employees
On March 23, Governor Reynolds announced the launch of a new Iowa Small Business Relief Grant to provide financial assistance to small businesses economically impacted by the COVID-19 pandemic. The program offers grants ranging from $5,000-$25,000.
- Funds can be used to assist eligible businesses in maintaining operations or reopening business following the COVID-19 pandemic
- Funds may not be used to pay debts incurred prior to March 17, 2020
- Application deadline is Tuesday, March 31 at 12 p.m. (noon)
- Please be patient and try again later if you're unable to access the online application. The program is NOT first-come, first-served. Each completed application received will be reviewed.
Applicants will need access to standard business ownership information, including primary address, contact information, FEIN, withholding permit number, sales tax permit number, etc. as applicable. Please have this information ready before starting the online application. Carefully review your information before you submit your final application. Once an application has been submitted, we are unable to make modifications to your application.
Eligibility
- Must be experiencing business disruption due to COVID-19 pandemic; and
- Must have employed between 2-25 people prior to March 17, 2020; and
- Must have a physical location in Iowa
How to Apply
- Complete and submit the Application: HERE
- Applications will be reviewed for eligibility, and grant amount will be determined by the level of impact, including loss in sales revenue and employees
- Notification of award decisions and disbursement of grant funds will be made in early April and disbursements shortly thereafter
Iowa Economic Development Authority announces Targeted Small Business Sole Operator Grants
The Targeted Small Business (TSB) program is designed to help women, individuals with minority status, service-connected disabled veterans and individuals with disabilities overcome some of the hurdles to start or grow a small business in Iowa.
A fund has been created to support TSBs with zero employees that have been economically impacted by the COVID-19 pandemic. The program offers eligible small businesses grants ranging from $5,000-$10,000 to businesses that are sole proprietors or single-member LLCs that are also TSB certified, or have an application submitted to the Iowa Economic Development Authority (IEDA) by April 10, 2020 to become TSB certified.
Eligibility
- Be experiencing business disruption due to the COVID-19 pandemic; and
- Be a Targeted Small Business or have an application in process by April 10, 2020 to become certified as a Targeted Small business in accordance with Chapter 52 of Iowa Code.; and
- Be a sole proprietor or single-member LLC with 0 (zero) employees; and
- Verify that Targeted Small Business income is the sole source of income for the business owner
To be eligible for
TSB Certification
, businesses must be:
- Located in the state of Iowa; and
- Operating for a profit; and
- Make less than $4 million in gross income, computed as an average of the preceding three fiscal years; and
- Majority owned (51% or more), operated and managed by a female, individual with minority status, service disabled veteran or individual with a disability
How to Apply
Tax Deferrals
Iowa Economic Development Authority announces Iowa Business Tax Deferral for businesses with any number of employees
Eligibility
- Must be experiencing business disruption due to COVID-19 pandemic; and
- Must have a physical location in Iowa
How to Apply
Loans
Small Business Administration Economic Injury Disaster Loans
This information relates to the currently approved program. Significant changes would take place if the bill under consideration in Congress is approved.
SBA Economic Injury Disaster Loans (EIDLs) are very different from traditional SBA loans.
- Funds originate from US Treasury, not a bank.
- No cost to apply.
- No obligation to take the loan if applied for and offered.
- Max unsecured loan is $25,000.
- Max secured loan is $2 million.
- Available business assets need to be pledged. SBA is waiving the requirement to pledge personal real estate.
- SBA will NOT decline a loan for lack of collateral, but requires borrowers to pledge what is available.
- 3.75% rate for small businesses; 2.75% rate for non-profits
- Up to 30 year terms.
- Use of funds include paying fixed debts, payroll, accounts payable and other bills that could have been paid had the disaster not occurred.
How to Apply
I am NOT a fan of hurting businesses financing short-term operating losses with long-term debt. That said, it may make sense for your business to apply for and receive approval so that you may draw funds if you need them.
Always consult with your banking partners on all matters related to debt financing.
Additional COVID-19 related resources
For additional resources related to COVID-19, visit:
Business Coaching and Assistance
For assistance considering and applying for these programs, please call Brian Dalziel at Iowa Lakes Corridor Development Corporation at 712-264-3474 or email him at
[email protected]
.
For up-to-date reporting on all matters related to COVID-19, please utilize our local news sources:
