(Des Moines) Iowa Governor Kim Reynolds, on Monday, announced the launch of a new Iowa Small Business Relief Program that will provide financial assistance to small businesses that have been economically impacted by the COVID-19 pandemic. The State’s plan comes on the heels of The United States Small Business Administration’s Disaster Declaration announced on Saturday, offering low-interest support loans.
“These three actions will provide some much-needed relief for struggling small businesses as well as some help with cash flow,” stated Governor Reynolds. “I understand this doesn’t make up for having your businesses closed for a period or your customers staying home. But it is our hope we can help businesses weather the storm. As your Governor, I am committed to helping them do just that.”
The plan developed by several state agencies offers grant funding ranging from $5,000 to $25,000 to small business owners with two to 25 employees. Additionally, the Iowa Department of Revenue will automatically extend the sales and withholding tax deadline for any business receiving a grant. It will consider an extension for any business applying for a grant. Iowa Workforce Development will also allow businesses with fewer than 50-employees to delay their first-quarter unemployment tax payments until July 31, 2020.
Eligible businesses must be experiencing business disruption due to the COVID-19 pandemic and have employed between 2-25 people before March 17, 2020
The Small Business Relief Grants will assist eligible businesses in maintaining operations or reopening the store following the COVID-19 pandemic. Businesses may not use the funds to pay debts incurred before March 17, 2020.
The Iowa Economic Development Authority will review grant applications for eligibility and will determine the grant amount by the level of impact, including the loss in sales revenue and employees.
(Photo: courtesy of Kelsey Kremer/Des Moines Register
