RESOURCES AVAILABLE TO IOWA SMALL BUSINESSES
The state and federal government are taking action to assist businesses during the COVID-19 pandemic. Here are some resources that have been announced.
THE U.S. SMALL BUSINESS ADMINISTRATION (SBA) has issued a disaster declaration for Iowa as of Jan. 3, 2020 and continuing. The declaration allows pandemic-impacted small businesses to apply for low-interest support loans. The declaration comes after Iowa Gov. Kim Reynolds submitted a federal funding request via the SBA’s Economic Injury Disaster Loan program.
SBA Economic Injury Disaster Loans are working capital loans to help small businesses, small agricultural cooperatives, small businesses engaged in aquaculture, and most private, non-profit organizations of all sizes meet their ordinary and necessary financial obligations that cannot be met as a direct result of the disaster. These loans are intended to assist through the disaster recovery period.
You can find details on the SBA’s Economic Injury Disaster Loan Program and information on how to apply for it at sba.gov/page/coronavirus-covid-19-small-business-guidance-loan-resources.
IOWA ECONOMIC DEVELOPMENT IS OFFERING MORE SUPPORT for Iowa small business owners facing economic pain from the COVID-19 pandemic in the form of new relief grants, tax deferrals and low-interest loans. A new Small Business Relief Program will provide financial assistance to Iowa-based small businesses with two to 25 employees experiencing business disruption. Eligible companies can receive grants ranging from $5,000 to $25,000, in addition to the potential deferral of sales and use or withholding taxes due and a waiver of penalties and interest. The deadline to apply is March 31 at noon. Visit iowaeconomicdevelopment.com/ and click on COVID-19 Response and Resources.
FINANCIAL ASSISTANCE FOR TARGETED SMALL BUSINESSES IMPACTED BY COVID-19. A fund has been created to support Targeted Small Businesses (TSB) with zero employees that have been economically impacted by the COVID-19 pandemic. The program offers eligible small businesses grants ranging from $5,000-$10,000 to businesses that are single owners with no employees that are also TSB certified, or have an application submitted to the Iowa Economic Development Authority (IEDA) by April 10, 2020 to become TSB certified.
This program will continue to process applications on an ongoing basis until all funds are exhausted. Applications are processed in both order of receipt of application and submission of all required documents and Targeted Small Business certification approval. Visit iowaeconomicdevelopment.com/ and click on COVID-19 Response and Resources.
Iowa Center for Economic Success will review grant applications for eligibility and determine the grant amount by the level of impact including loss in sales revenue and employees. The Iowa Center for Economic Success will also provide recommendations of award decisions to IEDA. IEDA will verify and/or finalize the applicant’s TSB certification and notify the applicant of the award decision.
Documents Required for Upload in the Online Application
- 3-month income statement
- Revenues - March 2019
- Revenues - March 2020 to date
- Balance Sheet (as of application date)
- Completed Business W-9 Form
Additionally, you will be asked to provide:
- Date of business establishment
- Description of Economic Impact Loss (loss of sales or revenue)
- Estimated loss of revenues March 15, 2020 - April 15, 2020
- Description of how funds will be utilized to maintain operations or reopen after the disaster
To be eligible for a TSB Sole Operator Fund grant, eligible businesses must:
- Be experiencing business disruption due to the COVID-19 pandemic; and
- Be a Targeted Small Business or have an application in process by April 10, 2020 to become certified as a Targeted Small business in accordance with Chapter 52 of Iowa Code.; and
- Be a single owner business with no employees, or a corporation with only one owner and no employees; and
- Verify that Targeted Small Business income is the primary source of income for the business owner
To be eligible for TSB Certification, businesses must be:
- Located in the state of Iowa; and
- Operating for a profit; and
- Make less than $4 million in gross income, computed as an average of the preceding three fiscal years; and
- Majority owned (51% or more), operated and managed by a female, individual with minority status, service disabled veteran or individual with a disability
The funds may not be used to pay debts incurred prior to March 17, 2020.
REMOTE NOTARIZATION NOW IN EFFECT. The in-person requirement for notarizing documents is temporarily waived, subject to requirements from last year’s legislation, for the duration of the COVID-19 emergency. You can find the temporary guidelines that apply during the emergency waiver of the in-person requirement on the Secretary of State’s website https://sos.iowa.gov/news/2020_03_25-2.html. Questions may be emailed to the Secretary of State at firstname.lastname@example.org