DES MOINES, Iowa — Gov. Kim Reynolds announced Wednesday the launch of the Iowa Small Business Relief Program, aimed at bringing financial assistance to small businesses economically harmed by the COVID-19 pandemic.
The program offers eligible small businesses grants ranging from $5,000 to $25,000 and a deferral of sales taxes and use or withholding taxes due and a waiver of penalty and interest.
“Small businesses are the source of thriving main streets and community pride across Iowa,” Reynolds said. “The Small Business Relief Grant Program is another way we can support our small businesses during this unprecedented time.”
To qualify for Iowa Small Business Relief Program Grant eligibility, a business must:
- Be experiencing business disruption due to the COVID-19 pandemic
- Have employed between 2-25 people prior to March 17, 2020
The Small Business Relief Grants will assist eligible businesses in maintaining operations or reopening business following the COVID-19 pandemic. The funds may not be used to pay debts incurred prior to March 17, 2020.
The Iowa Economic Development Authority (IEDA) will review grant applications for eligibility and will determine the grant amount by the level of impact including loss in sales revenue and employees. Notification of award decisions and disbursement of grant funds will be expedited.
On the provision of tax assistance, the Iowa Department of Revenue will review each application as applicable to determine if it is appropriate to grant a deferral of the eligible taxes and a waiver of penalty and interest.
The dual application for grant assistance and tax deferral is available at the IEDA website. Applications will be available from Tuesday, March 24 at 8 a.m., and the application deadline is Tuesday, March 31 at 12 p.m. The program may be restricted due to funding availability.
In addition, the U.S. Small Business Administration will be conducting small business disaster assistance webinars on Tuesday, March 24 from 2:30-4 p.m. and Thursday, March 26 from 2:30-4 p.m.
Unemployment benefits appear to be for 39 weeks instead of the normal 26 weeks. Evidently, they are automatically adding the additional weeks some are eligible for to everyone’s claim because of the virus.