Business Assistance Programs

Waterloo/Cedar Falls, IA MSA

(800) 369-0513 (U.S.A.) or (319) 232-1156
or info@cedarvalleyalliance.com

Site Acquisition & Permitting Assistance

Property Tax Abatement & Rebatement

NOTE: PROGRAM APPLICABLE TO MANUFACTURING AND SELECT VALUE-ADDED BUSINESS SERVICE PROVIDERS.

For a custom incentive proposal for new or expanding existing businesses contact: Lisa Skubal or Linda Laylin at (319) 232-1156 or (800) 369-0513 for assistance or email info@cedarvalleyalliance.com

Site Acquisition & Permitting Assistance

Program - 5 Municipally-Owned Industrial/Business Parks.
Assistance - Reduced land cost, $0-$65,000 per acre.
Use - Industrial/Office related projects.
Qualifications - Varies, based on increased assessed value made to site.

Program - City "One-Stop" Permitting Center
Assistance - Technical help w/ filing documents to expedite process.
Use - Business expansion and new location.
Qualifications - None.

Program - State Environmental Permitting - Iowa's Regulatory Assistance Program
Assistance - Technical help w/ filing documents including help with document preparation and submission of permit applications with the Iowa Department of Natural Resources and other state regulatory agencies.
Use - Business expansion and new locations.
Qualifications - None.

Property Tax Abatement & Rebatement

Program - City of Cedar Falls Tax Rebatement
Assistance - 75% abated year 1, 60% abated year 2, 45% abated year 3, 30% abated year 4, and 15% abated year 5.
Use - New construction; property improvement.
Qualifications - Industrial related construction. Minimum $1 million assessed value.

Program - City of Waterloo Tax Rebatement
Assistance - 50% annually for 5 years.
Use - New construction; property improvement.
Qualifications - Industrial related construction.

Program - Evansdale Industrial Tax Rebatement.
Assistance - Upfront rebate 10% of actual valuation.
Use - New industrial construction.
Qualifications - Determined by actual facility investment. Rebate provided when building permit is issued.

Program - Iowa's Enterprise Zone Program
Assistance - Double job training assistance, extended property tax abatement over 10 years, 10% investment tax credit against state corporate income tax form, 13% research & development tax credit against state corporate income tax form. 5% sales, service and use tax refund paid during construction or equipping facility.
Use - Value-added production or business service in downtown Waterloo, Iowa.
Qualifications - Create at least 10 new full-time at 90% of the average county/regional wage whichever is lower, $500,000 investment, excludes retail. Positions must be created over three years then maintained for an additional 10 years, must provide all full-time employees with a standard medical and dental insurance plan of which the business pays 80% of the premiums for employee-only coverage or provide a monetarily-equivalent benefit package.

Job Training

Program - Iowa Industrial New Jobs Training Program
Assistance - Reimbursement of trainees and trainers' wages, travel, materials.
Use - Training Iowa workers. Administered locally by Hawkeye Community College.
Qualifications - Determined by annual payroll/jobs created over 3-10 years.

Program - Iowa's Enterprise Zone Program
Assistance - Double job training assistance – select geographic area.
Use - Value-added production or business service in downtown Waterloo, Iowa.
Qualifications - Create at least 10 new full-time at 90% of the average county/regional wage whichever is lower, $500,000 investment, excludes retail. Positions must be created over three years then maintained for an additional 10 years, must provide all full-time employees with a standard medical and dental insurance plan of which the business pays 80% of the premiums for employee-only coverage or provide a monetarily-equivalent benefit package.

Grants

Program - RISE Economic Development Program
Assistance - Infrastructure construction costs, up to $100,000 maximum.
Use - Road extensions or improvements.
Qualifications - Filed by city.

Program - Rail Revolving Loan and Grant Program
Assistance - Infrastructure construction costs. Limited funding.
Use - Includes railroad mainlines, branch lines, switching yards, sidings, rail connections, intermodal yards and highway grade separation.
Qualifications - Filed by city;. Applicant must demonstrate project provides benefits to Iowa in terms of economic development and job growth. Can't use for at-grade surface repair or replacement, signals, gates or other crossing protection not associated with new construction or reconstruction.

Program - Value-Added Agricultural Products And Processes Financial Assistance Program (VAAPFAP)

Assistance - Innovative Agricultural Products and Processes: provides financial assistance for projects that use Iowa agricultural commodities to produce higher-value products that are not commonly produced in Iowa.

Renewable Fuels and Co-Products: provides financial assistance for development of renewable fuel production facilities such as biodiesel or ethanol facilities that yield co-products used for livestock feed.

Agricultural Biotechnology Industry, Biomass and Alternative Energy: provides financial assistance to agricultural businesses that utilize scientifically enhanced plants or animals that can be raised by producers. Assistance is also available for agricultural biomass businesses that utilize commodity crops, agricultural by-products, or animal feedstock in the production of chemicals, protein products, or other similar products. Businesses involved in the production of alternate energy which could include ethanol, biodiesel, biomass, hydrogen, or the production of wind energy can also benefit from this program.

Organic Processing and Emerging Markets: provides assistance to businesses that add value through further processing of organic products and through emerging markets.

Project Creation Assistance: available for projects that may be ineligible under the regular program because of their “precommercial” status.

Use: No single project may receive more than 25% of the program’s annual fund appropriation. Financial assistance is provided to qualifying projects in the form of loans and forgivable loans.

Qualifications:

The feasibility of the existing or proposed facility to remain a viable enterprise.
The degree to which the facility will increase the utilization of agricultural commodities produced in Iowa.
The extent to which the existing or proposed facility is located in a rural region of the state.
The proportion of private funds to be contributed to the project.
The level of economic development need in the region where the value-adding facility is to be located.
The degree to which the facility produces a co-product that is marketed in the same locality as the facility.
The proposed project must be located in Iowa.
The applicant must have a business plan demonstrating a viable market and managerial and technical capabilities to execute the plan.
The business should also have a third-party feasibility study confirming the viability of the proposed business.
The grantee must not use funds for any activity directly related to farming.
Jobs created must pay a starting wage of 130% of county average including select benefits.

Program - High Quality Jobs Program (HQJC)
The High Quality Job Creation Program provides qualifying businesses tax credits to off-set the cost incurred to locate, expand, or modernize an Iowa facility. To qualify for this very flexible assistance package that includes tax credits, exemptions and/ or refunds, a business must be a non-retail or non-service business and meet at least four of the eligibility requirements.

Assistance - Actual award amounts will be based on the business's level of need; the quality of the jobs; the percentage of created jobs defined as high-quality; and the economic impact of the project. This includes:

A refund of state sales, service, or use taxes paid to contractors or subcontractors during construction.

For warehouse or distribution center projects, a refund of sales and use taxes paid on racks, shelving, and conveyor equipment.

An investment tax credit equal to a percentage of the qualifying investment, amortized over 5 years. This tax credit is earned when the corresponding asset is placed in service and can be carried forward for up to seven additional years or until depleted, whichever occurs first.

The State's refundable research activities credit may be doubled while the business is participating in the program.

Use - New construction, working capital, machinery and equipment.

Qualifications – A business must meet at least four of the following requirements:

Offer a pension or profit sharing plan for all employees.

Produce value-added goods or be in one of 11 targeted industries.

Provide medical and dental insurance and pay 80% of the premiums.

Offer child care services.

Invest at least 1% of pretax profits in research and development.

Invest at least 1% of pretax profits in worker training.

Have active productivity and worker safety improvement program(s).

Purchase and occupy a vacant building which is at least 20,000 square feet.

In addition must pay 130% of the county average county wage for a given quarter the application is submitted.

Tax Credits

Program - New Jobs Tax Credit
Assistance - State income tax credit of $1,368 per job created for 2008 if wages exceed $22,800 annually.
Use - Hiring new Iowa workers.
Qualifications - May be carried forward up to 10 years against your Iowa Corporate Income Tax. To qualify, you must be involved in the Iowa Industrial New Jobs Training Program.

Low Interest Loans

Program- Iowa Community Economic Betterment Account (CEBA)

Assistance - No interest/low interest loan program. $3,000 per job created. Up to $1,000,000. Project can't be a competitor of existing Iowa businesses. The CEBA program also contains a "Venture Project" component specifically designed for early-stage and start-up businesses. Financial assistance is provided in forms conducive to the company's stage of maturity. The Venture Project component allows for longer-term job creation and investment performance periods than otherwise offered through CEBA. Telemarketing and warehousing excluded from program.
Use - Fixed assets, working capital
Qualifications -

The proposed or existing operation must be located in Iowa.

The business must create or retain jobs that meet CEBA county or regional wage standards.

The business must make a capital investment related to the proposed project.

The business must demonstrate a need for the requested funds.

The project must not proceed prior to the funding decision.

Business must be a targeted industry: Information Technology, Finance, Advanced Manufacturing or Biotechnology.

Project Evaluation.

Projects are also Evaluated According to the Following Criteria:

The quality of the created/retained jobs (i.e., employee wages and benefit packages).

The significant, positive impact the project makes on the community and the net economic gain to the state.

For CEBA participation, the amount of community support to be contributed to the project.

Site development: clearance, demolition and building removal.

The impact of the proposed project on in-state competitors.

Program - High Quality Jobs Program (HQJC)
The High Quality Job Creation Program provides qualifying businesses tax credits to off-set the cost incurred to locate, expand or modernize an Iowa facility. To qualify for this very flexible assistance package that includes tax credits, exemptions and/ or refunds, a business must be a non-retail or non-service business and meet at least four of the eligibility requirements.

A refund of state sales, service, or use taxes paid to contractors or subcontractors during construction.

For warehouse or distribution center projects, a refund of sales and use taxes paid on racks, shelving, and conveyor equipment.

The State's refundable research activities credit may be doubled while the business is participating in the program.

Use - New construction, working capital, machinery and equipment.

Qualifications – A business must meet at least four of the following requirements:

Offer a pension or profit sharing plan for all employees.

Produce value-added goods or be in one of 11 targeted industries.

Provide medical and dental insurance and pay 80% of the premiums.

Offer child care services.

Invest at least 1% of pretax profits in research and development.

Invest at least 1% of pretax profits in worker training.

Have active productivity and worker safety improvement program(s).

Purchase and occupy a vacant building which is at least 20,000 square feet.

In addition must pay 130% of the county average county wage for a given quarter the application is submitted.

Program - Value-Added Agricultural Products and Processes Financial Assistance Program (VAAPFAP)

Assistance - Innovative Agricultural Products and Processes: provides financial assistance for projects that use Iowa agricultural commodities to produce higher-value products that are not commonly produced in Iowa.

Renewable Fuels and Co-Products: provides financial assistance for development of renewable fuel production facilities such as biodiesel or ethanol facilities that yield co-products used for livestock feed.

Agricultural Biotechnology Industry, Biomass and Alternative Energy: provides financial assistance to agricultural businesses that utilize scientifically enhanced plants or animals that can be raised by producers. Assistance is also available for agricultural biomass businesses that utilize commodity crops, agricultural by-products, or animal feedstock in the production of chemicals, protein products, or other similar products. Businesses involved in the production of alternate energy which could include ethanol, biodiesel, biomass, hydrogen, or the production of wind energy can also benefit from this program.

Organic Processing and Emerging Markets: provides assistance to businesses that add value through further processing of organic products and through emerging markets.

Project Creation Assistance: available for projects that may be ineligible under the regular program because of their “precommercial” status.

Use: No single project may receive more than 25% of the program’s annual fund appropriation. Financial assistance is provided to qualifying projects in the form of loans and forgivable loans.

Qualifications:

The feasibility of the existing or proposed facility to remain a viable enterprise.
The degree to which the facility will increase the utilization of agricultural commodities produced in Iowa.
The extent to which the existing or proposed facility is located in a rural region of the state.
The proportion of private funds to be contributed to the project.
The level of economic development need in the region where the value-adding facility is to be located.
The degree to which the facility produces a co-product that is marketed in the same locality as the facility.
The proposed project must be located in Iowa.
The applicant must have a business plan demonstrating a viable market and managerial and technical capabilities to execute the plan.
The business should also have a third-party feasibility study confirming the viability of the proposed business.
The grantee must not use funds for any activity directly related to farming.
Jobs created must pay a starting wage of 130% of county average including select benefits.

Program - Black Hawk EDC Loan Program
Assistance - Based on available funding, rate varies, term 3-5 years.
Use - Land, building, machinery and equipment.
Qualifications - Project cost, historical & pro forma financials.

Program - SBA 504 Loan Program
Assistance - 40% of total project cost, Second Lien, term 20 years for real estate; 10 years equipment.
Use - Land, building, and certain equipment.
Qualifications - Businesses employing less than 500.