October 12, 2022
For more information contact:
Staci Hupp Ballard, Iowa Economic Development Agency
IEDA Announces $96 Million Investment in Small Businesses and Entrepreneurs in Iowa
October 12, 2022 (DES MOINES, IA) – The Iowa Economic Development Authority (IEDA) today announced a $96 million investment in the growth of small businesses in Iowa, including startups, manufacturers and businesses owned by veterans and individuals from all backgrounds. Funding is provided through the US Treasury Department’s State Small Business Credit Initiative (SSBCI), a small business assistance program augmented by the federal American Rescue Plan Act.
The Iowa Food Supply Chain Strengthening and Rural Development Support Program created during the 2021 legislative session was so successful that lawmakers renewed it during the 2022 legislative session. Eligible companies will receive grants of up to $100,000, with a total of $1,000,000 available through the program in the current fiscal year.
“Small businesses and entrepreneurs dream big, fuel Iowa’s economy and make our communities better places to live,” said Gov. Kim Reynolds. “Iowa has had the fastest economic recovery through the pandemic, in large part due to the creativity and resilience of our small businesses. This funding will build on the momentum by investing in our small businesses and entrepreneurs just as they chose to invest in Iowa.”
The Treasury Department approved Iowa’s amount based on a plan submitted by IEDA. Iowa’s SSBCI Dollars will focus on promoting venture capital and investment in scalable innovation companies through the following programs:
- Loan sharing program for investments in Manufacturing 4.0: $28 million to help Iowa manufacturers invest in the new technologies that are transforming the industry. The state will buy part of the loan to offset the risk for lenders.
- Small Business Collateral Support Program: $15 million to help small businesses make up for a lack of collateral when they secure credit through commercial lenders. Eligible borrowers include small businesses that are 51% owned by women, people from all backgrounds, veterans, people with disabilities and longtime rural residents; and small businesses that support arts and culture in Iowa.
- Venture Capital Innovation Fund Program: $22 million to improve funding opportunities in government entrepreneurship programs. This fund will also provide more funding to fill gaps in the development stages of startups as companies work on concept, launch and expansion.
- Venture Capital Co-Investment Fund Program: $31 million to process and hold holdings in private companies and ensure investments qualify.
“Iowa’s small businesses have faced some of the greatest economic challenges in recent years, but they also have some of the greatest success stories, and we’ve seen two straight years of record-breaking growth in new businesses,” said Debi Durham, executive director of IEDA and the Iowa Treasury. “Our team looks forward to working with our small business and innovation partners to bring this new effort to life.”
The SSBCI was founded in 2010 to improve access to capital for traditionally underserved small businesses and entrepreneurs. It has been reauthorized and expanded by the American Rescue Plan to build on that success as businesses emerge from the pandemic.
Planning for the SSBCI application process is underway. Visit iowaeda.com/ssbci for more information.
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