Financial Incentive Solutions - Let IADG connect you with the right people and programs.

Financial Assistance

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 businesses with business location or expansion projects. To learn more about Iowa's financial assistance programs, contact the IADG team to discuss the most appropriate program to support your project.

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 and money, improve facilities and processes, and enhance job creation and profitability. Click here for more information.


Rural Economic Development Loan & Grant Program (REDL&G)

0% Rural Economic Development Loan

The Rural Economic Development Loan Program was specifically designed to assist job creation projects in rural areas. Rural Electric Cooperatives can apply to this unique USDA program that allows for up to $1 million in 0% interest financing to assist with your business expansion.

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

Grants to Support Community Revolving Loan Funds

This nationally competitive program is designed to spur job creation in rural areas by creating or enhancing a revolving loan fund. IADG members operate 41 individual revolving loan funds across Iowa. To see if this may be an option for your community, contact the IADG Staff.

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.


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. 

Ripple Effect Program

Ripple Effect, provides a portfolio of financial and technical assistance program options for business 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.


Revolving Loan Funds

The Rural Economic Development Grant Program is designed to spur community development projects and job creation in rural areas by creating or enhancing a revolving loan fund. Rural Electric Cooperatives can apply to this unique USDA program that allows for up to $360,000 in 0% interest financing to assist a non-profit organization with a community development project.

Maximum grant: $300,000
Required matching funds: $60,000
Interest Rate of Initial Loan: 0%
Terms: 10 years
Maximum Payment Deferment: 24 months

As the original loans are repaid, they stay in the locally administered revolving loan fund (RLF) to support business expansions and other community development projects. As a result of this successful program, IADG members operate 40 individual revolving loan funds across Iowa.Click here for the RLF map.

To learn more about this program and how it can assist your community project, contact IADG today.

Tax Increment Financing (TIF)

City councils or county boards of supervisors may use the property taxes resulting from the increase in taxable valuation caused by the construction of new industrial or commercial facilities to provide economic development incentives to a business or industry. Tax Increment Financing 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, as welll as assistance in submitting a request to the city or county where the project is located.

Contact the IADG staff today for more information.