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Should Iowa’s unemployment benefits change to better aid entrepreneurs?

Anyone who has started a new business knows that along with the great exhilaration and joy, there are many unknowns.

For this reason, state Rep. John Landon, R-Ankeny and Des Moines entrepreneur Gabriel Glynn have teamed up to create legislation that would establish a new pathway for entrepreneurs to receive unemployment insurance benefits.

The legislation, if enacted, would allow the UI system to accept “two business-related meetings” in place of the current requirement. Legislative staff is still working on the definition of “business-related meetings.”

The UI system doesn’t work directly in opposition to those who wish to start new ventures, but it doesn’t encourage it, either. To receive benefits currently, applicants must be eligible and be “actively looking for work” by making at least two job contacts – such as by submitting resumes – a week.

(It is important to note the eligibility rules; this doesn’t mean anyone can just quit their current job and receive UI benefits. The eligibility requirements state that an applicant must have lost his or her job through no fault of their own.)

Glynn said the idea for the legislation came about after he left a job in 2015. Since he wanted to start a new venture, he said conducting interviews with potential employers to receive benefits, would have wasted time.

“This would waste both my time, and theirs. What if there was a way to encourage entrepreneurs – instead of trying to get a job, encourage creating jobs,” he said.

He said he did not apply for unemployment benefits and has not received them.

Under the proposed legislation, Glynn said he thinks the definition of a “business-related meeting” should include “a meeting with the Small Business (Administration), a vendor, a customer, mentor – anything that helps the business grow.”

“The time should be used to further the business,” he said.

State lawmakers have yet to consider the legislation. Speaker of the House Linda Upmeyer has said the budget is the priority in the House of Representatives and other policy bills are on hold until legislators make hard budget decisions.

The proposed legislation would also require applicants to officially register their business with the state of Iowa to be waived from the two-interview requirement. This means that there would be an upfront cost for those wanting to take the new path forward.

The bill would not change the duration of time for receiving benefits. Unemployment insurance benefits are available for up to 26 weeks, and in some circumstances, up to 39 weeks.

“Iowa could be the first state to take this step, and it would show one way that we stand out in supporting entrepreneurs,” Glynn said.

After the bill is introduced, it will go through subcommittee hearings, during which the public can provide testimony on the legislation.

If this bill is something that would impact you or your business, be in the lookout for bill text and updates on when to provide input.

Susan Gentz is the deputy executive director for the Center for Digital Education and a contributing writer for Clay & Milk.

Should Iowa's unemployment benefits change to better aid entrepreneurs? | Clay & Milk
A central Iowa ag-tech accelerator has secured more backers and finally has a name. The Greater Des Moines Partnership first announced the accelerator last year, naming four initial investors. On Monday, the Partnership said the program will be called the "Iowa AgriTech Accelerator" and named three new investors. The new investors include Grinnell Mutual, Kent Corp. and Sukup Manufacturing, all Iowa companies. They join investors Deere & Co., Peoples Co., Farmers Mutual Hail Insurance Co. and DuPont Pioneer. Each investor has agreed to put up $100,000 for the first year of the accelerator. Startups entering the program will receive $40,000 in seed funding in exchange for 6 percent equity. Tej Dhawan, an angel investor and local startup mentor, is serving as interim director until the AgriTech Accelerator names a permanent leader. Dhawan held a similar role with the GIA before Brian Hemesath was named as managing director. As interim director, Dhawan said his main job includes hiring the accelerator's executive director, establishing a business structure and initial recruiting for the first cohort. The accelerator will place few filters, such as location and product, on the applicant pool, Dhawan said. "When you’re seeking innovation, innovation can come from every corner of the world so why restrict ourselves," he said. One area the the AgriTech Accelerator won't recruit from is biotech. For its first cohort, the AgriTech Accelerator will work out of the GIA's space in Des Moines' East Village, Dhawan said. A future, permanent home is still to be decided. The accelerator's program will host startups from mid-July through mid-October, ending with an event connected to the annual World Food Prize. The GIA, which the AgriTech Accelerator is based on, also ends with presentations at an industry event. The accelerator has also started lining up a mentor pool. The Iowa Corn Growers Association, Iowa Soybean Association and the Iowa Pork Producers Association have agreed to provide mentors, as has Iowa State University. While the AgriTech Accelerator is loosely based off of the GIA, it will differ in its business structure, Dhawan said. The GIA runs through a for-profit model for both operations and its investment fund. The AgriTech Accelerator will have a nonprofit model for its operations and a for-profit setup for its fund. Dhawan said the nonprofit model is being used so the accelerator can better work with other nonprofit partners, such as trade associations. "These are all organizations that are nonprofits and can be amazing stakeholders without ever having to be investors in the accelerator," he said. "It becomes easier to work with trade associations in their nonprofit role when we are also a nonprofit." When it's up and running, the AgriTech Accelerator would be one of a handful of ag-focused startup development programs in Iowa. Others include the Ag Startup Engine out of Iowa State University and the Rural Ventures Alliance from Iowa MicroLoan. Matthew Patane is the managing editor and co-founder of Clay & Milk. Send him an email at mpatane@clayandmilk.com.
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