Are you a business owner in Iowa? Or, are you considering starting a business in the Hawkeye state? Take a look through this comprehensive list of business grants and loans—only available to Iowa-based businesses. One of these funding options may be just what you need to open or grow your business.
Department or Agency: Iowa Center for Economic Success
Loan or Grant title: Small Business Loans
Entrepreneurs and start-up business owners who have lived in Iowa for at least six months may be eligible to apply for a Small Business Loan through the Iowa Center for Economic Success. The loan fund was created to provide access to capital and increase small business development in the state. Loan amounts of up to $50,000 are available to cover most business expenses incurred in the process of developing and expanding a business.
Department or Agency: Iowa Economic Development
Loan or Grant title: Targeted Small Business Loans
Businesses that are at least 51% owned and operated by a person who is a female, minority, or disabled may qualify for a Targeted Small Business Loan through Iowa Economic Development. Eligible businesses are not required to have Targeted Small Business Certification through the organization, however, certification is encouraged. Loan amounts range up to $50,000 and can be used for expenses such as equipment costs, inventory, and operating costs. Applicants must live in Iowa for at least six months before applying for the loan.
Department or Agency: Manufacturing 4.0
Loan or Grant title: Loan Participation Program
To spark investment in technology across the state of Iowa, Manufacturing 4.0 is offering loans to manufacturers authorized to do business in the state. Loans range from $200,000 to $2 million and funds can be used toward software and fixed-asset equipment. Eligible manufacturing businesses must have less than 500 employees.
Department or Agency: Iowa Valley Business and Community Solutions
Loan or Grant title: Training Grants
New and current businesses that are expanding within or relocating to Iowa may be eligible for a grant through Iowa Valley Business and Community Solutions’ Training Program. Funds can cover travel reimbursement, adult education, job training, and testing for employees. These grants are aimed at businesses in manufacturing; businesses in healthcare and retail industries are not eligible to receive this training grant.
Department or Agency: City of Muscatine
Loan or Grant title: Small Business Forgivable Loan Program
New and existing businesses looking to expand may be eligible for a Small Business Forgivable Loan through the City of Muscatine, which was created to promote economic growth locally. Loans of up to $25,000 can be used toward building improvements and other business expenses associated with starting a new business. If businesses are not new, they must have a plan to expand into a new market, product, or service in order to be eligible for the forgivable loan.
Department or Agency: Jewell
Loan or Grant title: REGENT Grant
Jewell’s REGENT Grant was created to revitalize the city of Jewell by helping to improve buildings and signage for Jade business members. Qualified applicants may receive 50% reimbursement, up to $500, for interior or exterior building renovations and up to $250 for signage improvements.
Department or Agency: City of Davenport
Loan or Grant title: Small Business Loan Program
The driving force behind the City of Davenport’s Small Business Loan Program is to create jobs throughout the area. Businesses may be eligible to receive up to $30,000 for each new full-time employee. To be eligible, the business owner must be a low- to moderate-income individual and the new jobs must be created to employ low- to moderate-income people. See the website for additional details and requirements.
Department or Agency: City of Walnut
Loan or Grant title: Small Business Start-up Grant Program
To encourage local entrepreneurs, businesses located within the commercial districts in the City of Walnut may be eligible for a start-up grant of up to $5,000. A business must be operational for less than one year to be considered a start-up. Additional qualifications include having less than $350,000 in gross receipts or having less than five full-time employees on staff.
Department or Agency: Iowa Economic Development Authority (IEDA)
Loan or Grant title: Iowa Manufacturing 4.0 Loan Participation Program
Part of the State Small Business Credit Initiative (SSBCI), the Iowa Economic Development Authority’s (IEDA) loan participation program is designed to help Iowa manufacturers transition to 4.0 technologies. Through the program, IEDA partners up with Iowa lenders to help supply capital to eligible manufacturing companies, with loans from $1-2 million. To qualify, your manufacturing business needs to be based in Iowa, have fewer than 500 employees, and get at least 51% of your revenue from the sale of manufactured goods.
Department or Agency: Iowa Economic Development Authority (IEDA)
Loan or Grant title: Small Business Collateral Support Program
Another SSBCI initiative, the Small Business Collateral Support Program covers 40% of the collateral for qualifying Socially and Economically Disadvantaged (SEDI) owned businesses to get loans between $75,000 and $250,000. Eligible businesses need to have fewer than 125 employees and need to be owned, operated, and actively controlled by someone who falls into one of the following categories: women, individuals who belong to a minority group, veterans, individuals who have a disability, and long-term residents of a rural community or a CDFI investment area.
Department or Agency: Iowa Economic Development Authority (IEDA)
Loan or Grant title: Innovation Acceleration Fund
The Iowa Innovation Acceleration Fund gives capital to Iowa-based innovative technology companies to increase the pace of market development and create high-paying jobs within the state. The fund gives up to $250,000 to early-stage companies that need support launching, up to $500,000 to companies that need support scaling, and up to $1 million to companies that have an established customer base and need help expanding. To qualify, businesses need to have fewer than 500 employees and be committed to commercializing the product in the advanced manufacturing, biosciences, or information technology industries.
Department or Agency: Iowa Economic Development Authority (IEDA)
Loan or Grant title: Demonstration Fund
The Iowa Demonstration Fund awards qualifying businesses with up to $175,000 to develop and bring new technologies and concepts to market. Businesses can use the funds for a variety of purposes, including purchasing equipment, creating marketing materials, and acquiring marketing or management personnel. To qualify, companies need to be based in Iowa, have fewer than 500 employees, and commit to commercializing products in advanced manufacturing, biosciences, or information technology industries.
Department or Agency: Iowa Economic Development Authority (IEDA)
Loan or Grant title: Proof of Commercial Relevance
The Proof of Commercial Relevance program gives qualifying businesses in advanced manufacturing, biosciences, or information technology low-interest loans of up to $50,000 to put toward activities that validate the market potential of their products. Think: beta testing or intellectual property development. Eligible businesses need to be based in Iowa, have fewer than 500 employees, and be seeking support with market validation prior to their commercial launch.
Department or Agency: Iowa Economic Development Authority (IEDA)
Loan or Grant title: Butchery Innovation and Revitalization Fund
Iowa’s Butchery Innovation and Revitalization Fund gives businesses grants of up to $100,000 for projects related to small-scale meat processing, licensed custom lockers, and mobile slaughter units. To qualify, businesses need to be based in Iowa and have fewer than 75 employees. Grant applications for 2024 are closed, but check back in the winter to apply.
Department or Agency: Iowa Workforce Development (IWD)
Loan or Grant title: Iowa Student Internship Program
Iowa’s Student Internship Program gives grants to small and medium-size businesses in certain industries that implement internship programs designed to transition interns to full-time employees. For every $1 an employer contributes to a student intern’s wages, the IWD will match $1, up to $3,100 per intern (with a maximum of three interns per fiscal year). Qualified businesses need to be in advanced manufacturing, biosciences, or information technology, have fewer than 500 employees, and pay at least twice the minimum hourly wage ($14.50/hr).
Department or Agency: Iowa Workforce Development (IWD)
Loan or Grant title: STEM Internship Program
Similar to the Student Internship Program, the STEM Internship Program gives grants to businesses that hire STEM interns with the intention of transitioning them to full-time employment. For every $2 an intern earns in wages and every $1 an employer contributes, the IWD will also match $1, up to $5,000 per intern (with a maximum total of $50,000 per year).
Department or Agency: Iowa Workforce Development (IWD)
Loan or Grant title: Industrial New Jobs Training Program
The Industrial New Jobs Training Program—which is administered by Iowa’s 15 community colleges—gives qualifying businesses financial support to properly train their new employees. Participating businesses can get up to 50% of their training expenses reimbursed. To qualify, businesses need to located in or relocating to Iowa and engaged interstate or intrastate commerce for the purpose of manufacturing, processing, assembling products, warehousing, wholesaling, or conducting research and development.
Department or Agency: Iowa Economic Development Authority (IEDA)
Loan or Grant title: Employee Stock Ownership Plan Feasibility Study
IEDA created the Employee Stock Ownership Plan (ESOP) Feasibility Study program to help Iowa business owners create ESOPs, which would allow them to sell their businesses to one of their employees when they retire. Qualifying businesses can get a 50% reimbursement (not to exceed $25,000) for the cost incurred to obtain a feasibility study by an independent professional.
