Democrats propose $100 million in Iowa small business grants
(The Center Square) – The Iowa Economic Development Authority may receive $100 million for the 2021 fiscal year if Iowa legislators pass Senate File 325.
The bill was introduced and referred to the Appropriations committee Feb. 11, and paves the way for the EDA to provide grants to certain small businesses in the state with monies taken from the state’s General Fund.
Eligibility for the program’s grants would be expanded to include sole proprietors of businesses with no employees, and businesses that employed up to 50 people. Both business categories would be required to have been established before March 17, 2020.
To be eligible for grants, a business must have been physically located in Iowa since before March 17, 2020; not be in violation of any laws in the past five years; solely employ individuals legally authorized to work in the state; and not currently be in bankruptcy.
Businesses would be eligible for a single grant of $5,000 to $20,000. Any money that the small business program does not use would be available through the program until June 30, 2022.
The EDA implemented the Iowa Small Business Relief Program last year with funding received through the Coronavirus Aid, Relief and Economic Security Act. In order to qualify to receive grants ranging from $5,000 to $25,000, businesses had to have experienced business disruption due to the pandemic as well as employed two to 25 people before March 17, 2020.
The businesses that received funds are listed here.
Sen. Joe Bolkcom, D-Iowa City, is one of the bill’s several sponsors, whom are all Democrats. Bolkcom said that while Iowa businesses have received funding resources through programs such as the Paycheck Protection Program, the state “has not invested any of its money in helping businesses,” Bolkcom told The Center Square in a phone interview.
“People are still losing money. People are still laid off. … We’ve had a whole host of business closures – bars, restaurants. People have just not been able to make it through this period. More help is definitely needed,” Bolkom said.
The Iowa EDA has an overview of funding assistance opportunities that are available to businesses on its website.
About 20% of the 813 companies in 76 Iowa counties that responded to the 2020 Business Expansion and Strategic Trends (BEST) of Iowa Initiative were “experiencing financial stress,” but companies are adapting amid the challenges the pandemic has presented, according to a news release from the Iowa Economic Development Authority.
“Only 5.3% of companies reported postponing or cancelling plans to expand while 297 companies have plans to expand, totaling $2.62 billion of capital investments and the creation of 3,941 new jobs,” the news release stated.
There were 6,173 initial unemployment claims filed between Jan. 31 and Feb. 6, up 395 from last week’s adjusted numbers, according to a Feb. 11 Iowa Workforce Development Communications news release. Of the 6,173, 5,594 were from individuals who work and live in Iowa, and 579 claims were from individuals who work in Iowa and live in another state. Continuing weekly unemployment claims last week were 48,701, which was an increase of 2,898 from the previous week.
“Small business remains one of the hardest hit economic sectors,” U.S. Small Business Administration’s Iowa District Office district director Jayne Armstrong told The Center Square in a texted statement.
“IEDA [Iowa Economic Development Authority] has done an excellent job responding quickly to meet the needs of small business throughout the pandemic. If there is one positive outcome of the pandemic, it is that Iowa and America now recognize that without small business, there is no economy,” she said.
Disclaimer: This content is distributed by The Center Square
