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Additional Financial Assistance Available through Small Business Disaster Recovery Grant Program

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Small businesses, family farms and non-profit organizations impacted by the 2008 summer disasters can now apply for additional financial assistance through the Small Business Disaster Recovery Grant Program. The program, administered by Iowa Workforce Development (IWD), provides up to a $5,000 grant for damages incurred from last year’s floods and tornadoes.

To be eligible, a business, non-profit agency or farm must have existed prior to the disaster; have 25 or fewer employees; be located in a county that was declared eligible for Public Assistance by the Federal Emergency Management Agency (FEMA); and experienced a dislocation of at least one worker as a result of the disaster. Businesses do not need to have a Small Business Administration (SBA) loan or have received FEMA assistance in order to qualify for this program.

“This opportunity for extra relief in disaster-recovery will greatly benefit small business owners, farmers and non-profit organizations,” Terry Schumaker, Workforce Development Partnership director of economic development, said.

The grant can be used to reimburse or pay for the cost of repairing or replacing property and items damaged by the flood. Other costs the grant can cover include disaster-related insurance co-payments and deductibles, as long as the costs are associated with the business and not the individual.

The Small Business Disaster Recovery grant cannot be used for costs that have been covered by other sources including, but not limited to, FEMA, SBA, Jumpstart funds and insurance claims. Also, salary payments and capital improvements expenses are not eligible to be paid under the program.

About $1.7 million is available for the program statewide on a first-come, first-serve basis. The Rebuild Iowa Office and IWD encourage business owners who may be eligible to apply as soon as possible due to the limited amount of grants available at this time.

For full program information and application materials go to: www.rio.iowa.gov and click on Small Business Disaster Recovery Grant Program Information link. For more information, contact Schumaker at (641)422-4170.

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