Iowa Small Business Relief Program Launches

Applications for financial assistance under the new Iowa Small Business Relief Program are now available on the Iowa Economic Development Authority website.  The application deadline is March 31, 2020 at 12:00 p.m.

The Iowa Small Business Relief Program offers eligible small businesses two types of financial assistance:

• Grants ranging from $5,000 to $25,000
• Deferral of sales and use or withholding taxes due and waiver of related penalty and interest.

The purpose of the Program is to assist eligible businesses in maintaining operations or reopening businesses following the COVID-19 pandemic. Funds may not be used to pay debts incurred prior to March 17.

To be eligible for a grant under the Iowa Small Business Relief Program, a business must:

• Have a physical location in Iowa,
• Have employed 2 to 25 people prior to March 17, 2020,
• Be experiencing business disruption due to the COVID-19 pandemic.

To be eligible for business tax deferral, a business must:

• Have a physical location in Iowa,
• Be experiencing business disruption due to the COVID-19 pandemic.

The Iowa Economic Development Authority will review grant applications for eligibility and determination of the grant amount based upon the level of impact on the small business, including loss in sales revenue and employees. The Iowa Department of Revenue will review applications for tax assistance to determine if it is appropriate to grant a deferral of eligible taxes and waiver of penalty and interest.

Notification of award decisions and disbursement of grant funds will be made in early April and disbursements will be made shortly thereafter.

If you have any questions or need assistance regarding the Iowa Small Business Relief Program or any other economic assistance program for your business, please contact your Nyemaster Goode attorney.