Financial Assistance

IADG has a broad knowledge of the financial resources available at the federal, state and local IADG can assist in identifying financial assistance for your projectlevels 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)

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 towards 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 million in 0% interest financing to assist with your business expansion.  In fact, IADG and our members have a tremendous track record having brought over $44 million in loans to Iowa under this program.

Maximum Loan Amount: $1 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 operate 41 individual REDG revolving loan funds across Iowa with combined capitalization of over $43 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. 

Contact IADG to learn more about Iowa Community Development, Iowa Business Growth and the New Market Tax Credit.

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. 

Local

Ripple Effect Program  

Ripple Effect, provides a portfolio of financial and technical assistance program options for Ripple Effect provides assistance through Iowa independent telecommunication companiesbusiness and community development through rural independent telecommunication companies (ITCs) and their development partners. Ripple Effect offers flexible guidelines for securing financial contributions that must be matched by a financial commitment from the ITC and its local development partners.

Financial assistance includes direct loan assistance to business and industry and grants to communities and non-profits for planning initiatives.  Connect with RippleEffectWorks.org to learn more.

Revolving Loan Funds

IADG members operate 45 individual revolving loan funds (RLFs) across Iowa with a combined capitalization of over $48 million.  RLF Loan maximums and terms are determined locally.  So Click here for contact information of the RLF closest to you.  Or, to learn more about this program and how it can assist your business or community development project, contact IADG today.

Tax Increment Financing

Through tax increment financing (TIF), city councils or county boards of supervisors may capture new taxes generated from the increase in taxable valuation as a result of new construction related to an industrial or commercial building project.  These captured funds can then be used to provide economic development incentives to a business or industry.  TIF may be used to offset the cost of public improvements and utilities that will serve the new private development, to finance direct grants or loans to a company, or to provide the local match for federal or state economic development assistance programs.

IADG can provide information on TIF and how it has been utilized as well as assistance in submitting a request to the city or county where the building project is to be located.

Contact the IADG staff today for more information.

The IADG Energy Bank Revolving Loan Fund

The Iowa Area Development Group (IADG) now offers Iowa businesses and industries a low interest financing option for energy efficiency improvements, renewable energy projects and energy management and implementation plans. The establishment of the IADG Energy Bank Revolving Loan Fund is intended to provide an ongoing source of low interest financing for the implementation of cost effective projects that will save energy, improve facilities and processes, and enhance job creation and profitability. Click here for more information.

Contact the IADG staff today for assistance with your next project.