Iowa

A. State of Iowa Programs

To be eligible for funding from state programs, your project must create or retain jobs in Iowa.

Community Economic Betterment Account (CEBA) - This program provides forgivable and low-interest loans to aid economic development, site development, or infrastructure costs related to a project resulting in new or retained employment. Up to $1 million may be provided for each project, and businesses must meet certain wage thresholds. Applications are evaluated based upon the number of jobs created; both public and private matching funds; the level of need by the business; and the impact of the project on the local economy and the State of Iowa.

Economic Development Set-Aside (EDSA) Program - Projects that are located in cities with populations of less than 50,000, or in a county may be eligible for forgivable or low-interest loans from this program. The maximum incentive level from this program is $500,000 for a project which creates or retains jobs. The business seeking assistance must meet certain wage thresholds. Applications are evaluated based upon the number of jobs created; both public and private matching funds; the level of need by the business; and the impact of the project on the local economy and the State of Iowa.

Enterprise Zones - Enterprise Zones are designed to stimulate development by targeting economically distressed areas in Iowa. The program provides state and
local tax incentives for projects that create new investment and new jobs. Eligible businesses must create a qualifying investment of at least $500,000 and create ten full-time jobs. Benefits include a 10% investment tax credit, a refund of sales tax paid on construction costs, and a doubling of the State*s research and development tax credit and New Jobs Training program funding.

High Quality Job Creation Program - Provides qualifying businesses tax credits to offset the cost incurred to locate, expand or modernize an Iowa facility. Qualifying businesses are non-retail and non-service businesses and must meet a set of qualifications relating to the type of business, wages and benefits paid
to employees and the amount of investment in the project.

Industrial New Jobs Training Program - This program is available to new or expanding industrial (non-retail) businesses that produce products or services. The program is administered through the local community college and is designed to help pay the costs of developing work specific skills in employees. Western Iowa Tech Community College, located in Sioux City, will work with the company to design a training program to meet their specific needs.

Retraining Program - When a business retools or replaces obsolete equipment or methods with new ones, it often needs a workforce with different skills. Western Iowa Tech Community College will design a program to help businesses retrain workers in an environment of technological change.

Revitalize Iowa's Sound Economy (RISE) - This program can be used to pay for the costs of transportation directly related to the economic development project, such as a railroad spur or a road.

Small Business New Jobs Training Program - This program is similar to the Iowa Industrial New Jobs Training Program, but is designed for smaller businesses. The funds may be used for skill assessment, orientation, pre-employment training, instructional salaries, seminar fees, and on-the-job training.

Targeted Jobs Withholding Tax Credit Program - The City of Sioux City is one of four pilot cities selected to participate in this new program. The program is designed to assist businesses considering locations in states outside Iowa. For qualifying projects, the program provides a credit of 3% on withholding taxes paid
on jobs paid the average county wage for up to ten years. Qualifying projects must create at least $500,000 in capital invest or create ten new jobs. All funding awarded through the program must be matched by the business.

Value-Added Agriculture Products & Processes Financial Assistance Program (VAAPFAP) - Provides loans and forgivable loans to assist agriculture-related businesses to process crops and other agricultural commodities into new and innovative, refined, consumer-ready food, fiber, and fuel products.

B. City of Sioux City Programs

These programs are available to businesses located within the corporate city limits of Sioux City. The funds are generally available for business projects that will add to the employment or taxable property base of Sioux City.

Community Development Block Grant Funds (CDBG) - This program is administered by the city under federal guidelines. The funds can be used by the city for a range of activities, including business incentives.

City Sales Tax Economic Development Fund - Sioux City has designated a portion of its local option sales tax revenue for economic development. These funds can be used for a variety of business development purposes.

Tax Increment Financing - The city has several designated Urban Renewal Areas or Tax Increment Financing Areas. If your business is located in one of those areas, it may be eligible for public improvement financing that uses the additional, or incremental taxes that the project will generate to help finance the cost of the project.

Tax Exemptions - Also called Tax Abatement. Under some circumstances, and within certain pre-defined geographical areas, the city has the authority to abate taxes that are to be paid on improvements to property within the area.

Industrial Revenue Bonds - The city can issue bonds for some economic development projects. The bonds are normally issued at a lower rate of interest than might otherwise be available to the business.

Acquisition - In urban renewal areas the city can acquire property through condemnation or purchase for redevelopment. The city can then sell the acquired property at a fair market value and absorb the excess costs of the acquisition such as the cost of relocating preexisting property owners or tenants.

C. Private Sources in Iowa

Siouxland Initiative III (TSI) - The Siouxland Initiative is the tri-state economic development program of the Siouxland Chamber of Commerce. It is a nonprofit entity made up of business and civic leaders in the Siouxland area. TSI can provide creative financial assistance to help attract businesses to the Siouxland area, help retain and expand existing businesses, develop new small businesses and enhance the quality of life in the Siouxland area.

Siouxland Economic Development Corporation (SEDC) - The SEDC is a nonprofit corporation which administers several different loan programs, including a micro-loan program. The SEDC portfolio includes Small Business Administration (SBA) loans, Economic Development Administration (EDA) loans, Community Development Block Grant (CDBG) loans, and loans from its own internal sources of cash.

Mid American Energy - The utility company actively promotes economic development in its service area. As a part of those efforts, it has a program that can provide assistance to businesses that are starting up, moving to, or expanding in the Siouxland area.

Northwest Iowa Power Cooperative (NIPCO) - NIPCO is a generation and transmission (G & T) cooperative serving wholesale power to nine member rural electric cooperatives and many municipal electric systems in western Iowa. NIPCO promotes economic development in its service area and actively pursues business development and expansion projects. In addition, NIPCO can provide land and building data, demographics for the area, and financial assistance.

Western Iowa Tech Community College (WIT) - WIT administers the Iowa Industrial New Jobs Training Program, the Iowa Small Business New Jobs Training Program and the Iowa Retraining Program (see the captions under Section I).