State of Iowa Financial Assistance Programs
Community Economic Betterment Account (CEBA)
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. 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.
Economic Development Set-Aside Program (EDSA)
The EDSA program provides 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. At least 51 percent of the created/retained employment opportunities must be made available to individuals presently earning wages defined as low-and-moderate income.
Value-Added Products and Processes Financial Assistance Program (VAAPFAP)
The Value-Added Agricultural Products and Processes Financial Assistance Program seeks to increase the innovative utilization of Iowa's agricultural commodities. It accomplishes this by investing in the development of new agri-products and new processing technologies. Financial assistance is provided in the form of loans and forgivable loans.
New Jobs and Income Program (NJIP)
The Iowa New Jobs and Income Program provides a package of tax credits and exemptions to businesses making a capital investment of at least $11,414,000 and creating 50 or more jobs meeting wage and benefit targets. Qualifying businesses participating in NJIP receive substantial benefits.
Business locating or expanding in an Enterprise Zone making a minimum capital investment of $500,000 and creating at least 10 full-time jobs meeting wage and benefit targets may receive tax benefits including local property tax exemption on the value-added to the property; additional funding for training new employees (in addition to those authorized under the Iowa Industrial New Jobs Training Program); a refund of state sales, service or use taxes paid to contractors or subcontractors during construction; an investment tax credit of up to a maximum of 10 percent of new investment in machinery and equipment, land, buildings and improvements to existing buildings (and can be carried forward for up to seven years or until depleted); and an additional research and development tax credit of up to 6.5 percent.
Iowa Industrial New Jobs Training Program (260E)
The Iowa Industrial New Jobs Training Program provides customized classroom instruction, on-the-job training and other training activities for employees in newly created jobs. An employer may be reimbursed up to 50 percent of new employees' wages for on-the-job training. All training is customized to the company's special needs. Community colleges finance the program by the sale of tax-exempt bonds which are repaid by the tax revenue generated by the salaries and capital invested to support the new jobs. As a result company profits are not used to repay the bonds.
For more information on State of Iowa financial assistance programs, visit the Iowa Economic Development Authority's website.