State officials have expanded the amount of money in the state grant program for small businesses, adding an additional $20 million to the Small Business Relief Program grant pool.
Originally announced last month with a grant pool of $4 million, Iowa Economic Development Authority (IEDA) director Debi Durham announced today that her agency now intends to send a total of $24 million worth of grants to eligible small businesses.
So far, nearly 14,000 applications for grants have been filed by small business owners across the state, requesting a total of more than $148 million for relief amid the coronavirus pandemic.
The new Iowa Small Business Relief Program is designed to offer eligible small businesses grants ranging from $5,000 to $25,000. Approximately half the money is coming from the state’s economic emergency fund and half from the IEDA budget.
“Our team at the IEDA has been working tirelessly behind the scenes to assist as many of our small businesses as possible as they’ve closed their doors or have seen revenues dramatically drop,” said Durham.
Durham said that 503 grants were sent out Tuesday night totaling more than $10 million and more grants will be approved daily until the state hits the $24 million that is being distributed from the state’s economic emergency fund and EDA budget.
The first round of funding is primarily assisting restaurants, bars and breweries in Iowa impacted by the pandemic, as these were the businesses hit by the first wave of closures ordered to help slow the spread of the virus.
“These businesses were among the first to close their normal operations and it’s our goal to get them up and running as soon as possible,” said Gov. Reynolds.
“Every application received was triaged and I use this word very purposefully. Because triaged actually describes this entire effort and this entire process,” added Durham. “We determined eligibility and the businesses identifying the greatest revenue disruption were awarded in the first round of funding that went out last evening.”
Eligible applicants that do not receive a notification this week will be considered for potential funding rounds in the future but a new application will not be opened.
Previous coverage
Treasury Department releases new guidance rules on SBA Loans -April 3, 2020
Senate Stimulus: What it would mean for the tech sector -March 27, 2020
State announces assistance for targeted small businesses -March 26, 2020
Iowa launches Small Business Relief Program in response to COVID-19 -March 24, 2020
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