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Financial assistance and
incentives are available through OCEDC from federal, state, regional and local
sources for expansions, start-ups, and re-locations. Financial assistance
includes "gap" financing programs (state and federal), SBA 504, 7A and
guarantees along with USDA guarantee programs. Incentive programs include Tax
Increment Financing or property tax abatement, sales tax relief (in certain
circumstances), and training programs. The following, are the specific program
details:
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STATE
OF IOWA PROGRAMS: |
| To be eligible for
funding from state programs, your project must create or retain jobs in
Iowa. |
|
Iowa Department of Economic
Development |
| Community Economic
Betterment Account (CEBA): This program provides forgivable and
low-interest loans to aid economic development, site development, or
infrastructure costs related to a project resulting in new or retained
employment. Up to $1 million may be provided for each project, and
businesses must meet certain wage thresholds. Applications are evaluated
based upon the number of jobs created; both public and private matching
funds; the level of need by the business; and the impact of each project on
the local economy and the State of Iowa. |
| Economic
Development Set-Aside (EDSA) Program: Projects that are located in
cities with populations of less than 50,000, or in a county may be eligible
for forgivable or low-interest loans from this program. The maximum
incentive level from this program is $500,000 for a project, which creates
or retains jobs. The business seeking assistance must meet certain wage
thresholds. Applications are evaluated based upon the number of jobs
created; both the public and private matching funds; the level of need by
the business; and the impact of the project on the local economy and the
State of Iowa. |
| New Jobs and
Income Program (NJIP): This program provides a package of tax credits
and exemptions to businesses making a capital investment of a minimum of
$10.87 million and creating 50 or more jobs meeting specific wage and
benefit targets. Eligibility requirements include: 1) creating 50 or more
new jobs for at least 5 years, 2) pays a median wage of at least $11.96 per
hour or 130% of average county wage for new jobs, which ever is higher, 3)
makes a capital investment of at least $10.87 million, 4) provides and pay
at least 80% of health and dental insurance, 5) business does not close or
significantly reduce operations elsewhere in Iowa. Requires a business plan.
No construction can be started prior to awarding of state funding. |
| Revitalize Iowa's
Sound Economy (RISE): This program can be used to pay for the costs of
transportation directly related to the economic development project, such as
a railroad spur or a road. |
| Iowa Job Training
Programs: The programs are administered through the local community
college and is designed to help pay the costs of developing work specific
skills in employees. |
| Iowa Small
Business New Jobs Training Program: This program is similar to the Iowa
Industrial New Jobs Training Program, but is designed for smaller
businesses. The funds may be used for skill assessment, orientation,
pre-employment training, instructional salaries, seminar fees, and
on-the-job training. |
| Iowa Retraining
Program: When a business retools or replaces obsolete equipment or
methods with new ones, it often needs a workforce with different skills.
Western Iowa Tech Community College will design a program to help businesses
retain workers in an environment of technological change. |
| Community
Development Block Grant Fund (CDBG): This program is administered by the
Iowa Department of Economic Development under federal guidelines. The funds
can be used by the city for a range of activities, including business
incentives. |
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