Iowa Small Business Relief Program Application Opens March 24
Mar 23, 2020
On March 23, Governor Reynolds, along with representatives from the Iowa Economic Development Authority (IEDA), Iowa Workforce Development (IWD) and the Iowa Department of Revenue (DOR), announced a new Iowa Small Business Relief Program that will provide financial assistance to small businesses and tax deferrals to any Iowa businesses that have been economically impacted by the COVID-19 pandemic.
The program offers eligible small businesses grants ranging from $5,000 - $25,000 in addition to offering Iowa businesses a deferral of sales and use or withholding taxes due and waiver of penalty and interest. Applications for the grant and tax deferral are available here starting Tuesday, March 24 at 8 a.m. The application deadline is Tuesday, March 31 at noon. The program may be restricted due to funding availability.
Iowa Small Business Relief Grant Program
The Small Business Relief Grants will assist eligible businesses in maintaining operations right now or reopening business following the COVID-19 pandemic. The funds may not be used to pay debts incurred prior to March 17, 2020. The IEDA will review grant applications for eligibility and will determine the grant amount by the level of impact including loss in sales revenue and employees. Notification of award decisions and disbursement of grant funds will be expedited.
To be eligible for a small business relief grant, businesses must:
- Be experiencing business disruption due to the COVID-19 pandemic
- Have employed between 2 - 25 people prior to March 17, 2020
The Iowa DOR will review each application to determine if it is appropriate to grant a deferral of the eligible taxes and waiver of penalty and interest. IEDA Director Durham emphasized that today’s announcement for assistance is intended to be a “stop gap” to help keep businesses’ doors open, and it will be reassessed once the latest federal legislation is finalized.
Keep in mind: Businesses should work with their current lenders and/or banker to determine what options work best for their business.