IADG has a broad knowledge of the financial resources available at the federal, state and local 
levels to spur investment, fuel job growth, and support community revitalization. Rural Iowa offers some particular advantages that should be considered. Listed below are programs that IADG frequently uses to assist with business location or expansion projects. To learn more about Iowa's financial assistance programs, contact the IADG team to discuss the most appropriate programs to support your project.
FEDERAL
Rural Economic Development Loan & Grant Program (REDL&G)
Flyer - Program overview and recent project highlights
Rural Economic Development Loan Program (REDL)
The USDA Rural Economic Development Loan Program was specifically designed to assist business expansions in rural areas. The program is targeted toward advanced manufacturing and value-added agriculture projects resulting in job creation. IADG's members can apply to this unique USDA program that allows for up to $1.5 million in 0% interest financing to assist with your business expansion. In fact, IADG and our members have a tremendous track record, having brought nearly $106.1 million in loans to Iowa under this program.
Maximum Loan Amount: $1.5 million
Maximum Term: 10 years
Interest Rate: 0% Interest
Maximum Payment Deferment: 24 Months
* Maximum amount subject to change by USDA
Rural Economic Development Grant Program (REDG) to Support Community Revolving Loan Funds
Recognizing the role community development projects have in supporting the local economy, the USDA Rural Economic Development Grant Program is designed to provide financial assistance to local government and non-profit entities. IADG's members can apply to this unique USDA program. Whether new infrastructure, educational, or medically oriented projects, the program allows for up to $360,000 in 0% interest financing to assist community development projects. As an added bonus, as the initial loan is repaid, it goes back into a locally controlled revolving loan fund, which can be utilized to assist other business and community development projects.
As a result of our success with this program, IADG members have secured $60.7 million in grants, which also led to the development and operation of 73 individual REDG revolving loan funds across Iowa. These RLFS have a combined capitalization of nearly $76 million. To see if this program may be an option for your community, contact the IADG Staff.
Maximum grant: $300,000*
Required matching funds: $60,000 (20%)
Interest Rate of Initial Loan: 0%
Terms: 10 years
Maximum Payment Deferment: 24 months
* Maximum amount subject to change by USDA
New Markets Tax Credits
The New Markets Tax Credit (NMTC) program was created to address the lack of capital available to business and economic development ventures in federally defined "distressed census tracts" throughout the country. The NMTC provides the incentive of a 39% federal tax credit to qualifying investors. IADG works closely with the Iowa Community Development and Iowa Business Growth to help market this economic development tool.
Learn more and view eligible counties in Iowa.
STATE
The State of Iowa offers direct financial assistance and tax incentives to support business growth, workforce training, and infrastructure development. Connect with the Iowa Economic Development Authority to view available programs or contact an IADG staff person for assistance identifying tools to support your business project.