Home > Reverse Investment > Financial Assistance Programs 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. 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. Two primary investment tools administered by the Iowa Department of Economic Development (IDED) are the Community Economic Betterment Account and the Economic Development Set-Aside (EDSA) programs. These programs can help finance business operations; including biosciences, advanced manufacturing and information solutions/financial services. The CEBA and EDSA programs provide financial assistance to companies that create new employment opportunities and/or retain existing jobs, and make new capital investment in Iowa. The amount of funding is based, in part, on the number of jobs to be created/retained. Funds are provided in the form of loans and forgivable loans. CEBA and EDSA investments are used to leverage other financial support such as bank financing and private investment, as well as local community support. The CEBA program also contains a modernization project component. This part of the program is specifically designed for business investing in machinery and equipment and/or technology upgrades to improve or maintain their competitive edge in their respective markets. The EDSA program assistance is targeted toward business projects located in communities with populations of less than 50,000. The purpose of the program is to create/retain quality employment opportunities for low- and moderate-income individuals. CEBA and EDSA funds may be used for a wide range of business development purposes, including: ● The quality of the created/retained jobs (i.e., employee wages and benefit packages) ● The significant, positive impact the project makes on the community and the net economic gain to the state ● For CEBA participation, the amount of community support to be contributed to the project ● Site development: clearance, demolition and building removal ● The impact of the proposed project on in-state competitors The amount of funding available on a per-project basis varies between the programs. The CEBA and EDSA programs can provide assistance up to $1 million. As an alternative, nontraditional, short-term float loans, or interim loans greater than $1 million may be available. The funding level for start-up companies varies depending upon employee wage rates. The maximum assistance available through the EDSA program is $1,000,000. The CEBA program also contains a "Venture Project" component specifically designed for early-stage and start-up businesses. Financial assistance is provided in forms conducive to the company's stage of maturity. The Venture Project component allows for longer-term job creation and investment performance periods than otherwise offered through CEBA. ● The proposed or existing operation must be located in Iowa ● The business must create or retain jobs that meet CEBA/EDSA county or regional wage standards ● The business must make a capital investment related to the proposed project ● The business must demonstrate a need for the requested funds ● The project must not proceed prior to the funding decision ● Must meet wage thresholds requirements. Projects are also evaluated according to the following criteria ● The quality of the created/retained jobs (i.e., employee wages and benefit packages) ● The significant positive impact the project makes on the community and the net economic gain to the state ● For CEBA participation, the amount of community support to be contributed to the project ● Site development: clearance, demolition and building removal ● The impact of the proposed project on in-state competitors 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. 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. This program was designed for companies that have production facilities in Iowa and intend to increase or modemize them to promote employment of highly proficient workers. In order to be eligible for this program, the concerned company must meet standards regarding targeted industry, employee benefits and facility construction specifications. Under this program, authorized companies are qualified deductions, tax reduction or exemptions, and tax refund. EVA fosters and supports the development of venture companies where the focus is on technology, in the interest of realizing high growth. EVA offers up to $20,000 for businesses to start operations or for businesses involved in proliferation activities. Technological support of up to $50,000 is also available. When applying for assistance, it is necessary to determine the capital required based on a specific business plan. EVA offers support of up to half the amount deemed necessary to accomplish the entire plan, but support will not exceed $20,000. Further, venture companies must have their development curriculum completed, or have equivalent experience 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). 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. 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. 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. 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. 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.