The Iowa Economic Development Authority (IEDA) is committed to helping Iowans achieve their business goals. The Small Business Assistance Programs are designed to help women, minorities and persons with disabilities receive business assistance. These programs not only support multiculturalism in Iowa, but grow and expand Iowa’s economy.
The Targeted Small Business (TSB) Assistance Program supports the creation and expansion of specified businesses. To qualify for the program, a business must be operating for profit and have annual gross sales of less than $4 million and be at least 51% owned, operated and managed by women, minorities or persons with disabilities. A business can receive “Targeted Small Business” certification through the Iowa Department of Inspections and Appeals or from the Iowa Department of Transportation’s Disadvantaged Business Enterprise program.
Forms of Assistance
- Loans of up to $50,000 may be provided at interest rates of 0-5% that must be repaid in monthly installments over a five to seven year period. The first installment can be deferred for three months for a start-up business and one month for an existing business.
- Loan guarantees are available in limited cases for lines of credit up to $50,000. Loan guarantees can cover up to 80% of a loan obtained from a bank or other conventional leader. Interest rates are at the discretion of the lender.
- Equity grants may be available in amounts up to $50,000, but must be used to leverage SBA or conventional bank loans.
- Applicant must be able to invest 10% cash of the total project cost. For example, if a loan of $30,000 is sought, the applicant must have $3,000 (10%) of his or her own cash.
- TSB funds may be used to purchase equipment, acquire inventory, provide operating capital or leverage additional funding.
- Another advantage of being a certified targeted small business is the exclusive access TSBs are given to a 48-hour Iowa TSB Procurement website. State agencies seeking goods and services place their job bids on this website 48 hours before they are shared on public website, giving the TSB an edge in competing for the job.