Entrepreneurial Component
GROW IOWA VALUES FINANCIAL ASSISTANCE PROGRAM
INVESTING IN NEW IDEAS AND TECHNOLOGY!
The Iowa Department of Economic Development (IDED) has retooled our direct financial assistance programs to provide the flexibility and responsiveness necessary to support business needs. The Grow Iowa Values Financial Assistance Program (GIVFAP) serves as the funding source for projects that are focused on job creation or retention, value-added agriculture and entrepreneurial efforts. This program, combined with Iowa’s nationally recognized business climate, tax incentives and proactive state government make Iowa a great place to do business.
Entrepreneurial Projects
Financial and/or technical assistance is available to support and encourage the growth of early-stage businesses that are developing a new product or new technology.
Eligibility Requirements:
- An eligible business is a business that has been competing in a particular industry for three years or less.
- The business must be located in or planning to locate in Iowa.
- An applicant must consult with and obtain a letter of endorsement from an IDED-approved Iowa business accelerator or from another recognized entrepreneurial development organization such as a John Pappajohn Entrepreneurial Center (JPEC) [www.pappajohn.com/entrepreneur/], a Small Business Development Center (SBDC) [www.iowasbdc.org], or an equivalent organization recognized by the IDED.
- The individual or business must have a business plan that details the business growth strategy, management team, production/management plan, marketing plan, financial plan, and other standard elements of a business plan.
- Priority will be given to businesses competing in those sectors of the Iowa economy with the greatest potential for growth and expansion. Sectors having such potential include but are not limited to biotechnology, recyclable materials, software development computer related products, advanced materials and advanced manufacturing.
- Businesses engaged in retail sales, personal services, consulting, franchises, the provision of health care or other professional services, and distributors of products or services will not be considered targeted industries and are not eligible for this program.
Criteria
- Type of Business
- Management Team and Management Expertise
- Business Capitalization
- Strength of the Business Plan
Assistance Available:
Two types of assistance are available under the entrepreneurial component: financial assistance and technical assistance. Both forms of assistance are limited to 50 percent or less of the total project costs.
Financial Assistance: Up to $250,000 may be awarded to a single applicant in the form of financial assistance. This funding may be used to leverage conventional financing; for business expenses or working capital; to purchase machinery, equipment, software or other business expenses deemed reasonable and appropriate by IDED. Awards will be in the form of a loan, royalty agreement, or other form of an equity like investment as determined by IDED upon approval of application.
Access the Financial Assistance Application Process.
Technical Assistance: Up to $25,000 may be awarded to a single applicant in the form of financing for technical assistance provided by a third party. The request for this type of assistance may be submitted either in conjunction with a request for financial assistance or in a separate application. Applications submitted that are not in conjunction with a request for financial assistance must demonstrate financial need for the technical assistance. Awards will be in the form of a grant, loan, royalty agreement, or other form of an equity like investment as determined by IDED upon approval of application.
Access the Technical Assistance Application [MS Word: 153k].
To Learn More:
Individuals interested in the program should contact the Iowa Department of Economic Development to determine eligibility or to obtain information specific to their needs.
Phone: 515.725.3133
E-mail:
businessfinance@iowa.gov