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178 applications received for broadband grants following $100 million investment

August 17, 2021

The state of Iowa has received 178 applications from broadband providers for the latest Empower Rural Iowa Broadband Grant Program. The request stems from the $100 million broadband investment that was secured this past legislative session.

Most of the grants will go toward providing internet service with download and upload speeds of at least 100 megabits per second.

According to BroadbandNow, Iowa ranks as the 45th best-connected state in the US. Despite relatively even broadband coverage throughout the state, speed tests reveal that Iowa’s average download speed is 47.1 Mbps, which is the second-slowest nationwide. Only Alaska’s average speed is slower than Iowa’s.

Iowa Broadband Map

In total, the 178 applicants requested over $292 million in grant funding, nearly three times the amount of total funds available. Governor Reynolds says she intends to seek federal funds to supplement the $100 million in state grant money that will be awarded.

The grant awards will be announced in September.

Previous Coverage

Gov. Reynolds signs budget bill into law providing $100M to broadband grant program -May 26, 2021

Expanding Broadband Access Across Iowa –Sept. 9, 2020

Tags: broadband grant program Empower Rural Iowa

178 applications received for broadband grants following $100 million investment | 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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