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NGExpert financial copywriter
Page written by Chris Godfrey. Last reviewed on September 4, 2024. Next review due October 1, 2025.
If you’re an Iowa-based business owner in need of funds, small business grants could be your solution. Provided by government departments, corporations, foundations and other organizations, business grants are effectively free money. There’s no need to repay the funds if you spend them where you said you would.
Small business owners and entrepreneurs in Iowa can improve their chances of winning a business grant by preparing in advance. Key tasks to take care of include:
Iowa has no shortage of small business grants and they come in many shapes and sizes, which means finding the right grant for you may require some homework. Here are the best places to begin your search:
If you have an Iowa-based business or center of operations, you may be eligible for grant funds from Iowa Valley if the training is facilitated by your local community college. There are two grants available, covering manufacturing and workforce training programs and they are suitable for existing and new businesses in Iowa. Depending on the grant program you select, up to $100,000 in total awards per business spread over three years may be available. Matching funds are required for awards over $4,999.
Iowa Grantwatch operates a directory of current grant opportunities, although not all may be specific to Iowa-based organizations. Up to 2,000 grants may be available at any one time, with award values and qualifying criteria varying by category and mission goal.
MORE: Grants for women, black women, disabled business owners, minorities and veterans
US Grants is a another one-stop portal to find and apply for government grants, stimulus packages and funding opportunities from local, state and federal government agencies. Available Iowa small business grants include funding initiatives for organizations that operate in the fields of tech, health, research, sciences, agriculture, the environment, etc.
MORE: Grants for farmers.
Offered by the Iowa Economic Development Authority, the Iowa Innovation Acceleration Fund promotes the formation and growth of businesses that engage in the transfer of technology to competitive, profitable companies that create high-paying jobs. Funds are designed to accelerate the pace of market development, leverage private investment and industrial expansion efforts that result in significant capital investment.
The fund gives up to $250,000 to early-stage companies that need support launching, up to $500,000 to companies that need support scaling, and up to $1 million to companies that have an established customer base and need help expanding. To qualify, businesses need to have fewer than 500 employees and be committed to commercializing the product in the advanced manufacturing, biosciences, or information technology industries.
The City of Walnut offers a Small Business Start-Up Grant that’s designed to encourage entrepreneurs to launch and support businesses within the city. The program provides up to $5,000 in grant funds to eligible businesses located in designated commercial districts within the city limits of Walnut. To qualify, your business must have gross receipts of less than $350,000 or employ less than the equivalent of 5 full-time employees. For a small business to qualify as a start-up, the organization must be within its first year of operation.
Iowa SourceLink is an information hub for Iowa small businesses. The site provides easy access to grant programs, licensing data and application forms, city development programs, business registration information and more. There are no fees to use this resource.
The WomensNet Amber Grants awards multiple grants per year to women wishing to start or grow their own business. $10,000 is offered monthly in three separate categories (total of $30,000 per month available). Participants who win a monthly prize also automatically qualify for the draw for an annual $25,000 award – with three prizes available, one for each award category.
You can apply for any of these grants by completing an online application and paying a $15 entrance fee.
MORE: Grants for women.
The National Association for the Self-Employed (NASE) provides business growth grants of up to $4,000 to members. Since 2006, nearly $1,000,000 has been awarded, with grants used for marketing, advertising, hiring employees, expanding facilities and other specific business needs. All minorities may apply, but you must be a member of NASE to participate. (Membership fees may be applicable).
Business loans may provide an alternative source of funding for your business or new venture. Online lenders will typically be the best option for this type of financing, but you may pay higher interest rates and fees than you would with traditional banks. Credit checks are standard with most commercial financing, but depending on the type of loan you choose, you may not need to provide collateral:
You receive a single, lump-sum cash injection and then pay it back in regular instalments over a fixed period of up to 25 years. Collateral may be required.
A business line of credit is a business loan that functions like a high-value credit card. Borrowers can withdraw as much as they want when they want from a loan facility up to the limit of their borrowing. You only pay interest on the sums you withdraw, not the whole credit line. This can significantly reduce your borrowing costs. Collateral may be required.
Also known as account receivables financing. Borrow against the value of your unpaid invoices. The lender will usually provide up to 95% of the invoice value within a few days or even hours of the bill being raised. Your invoices act as security for the loan, no added collateral required.
Equipment loans use the asset you’re financing as security – no added collateral is required. You use the equipment as you pay for it and the lender maintains a lien on the machinery. Once you pay the loan back, the lender releases the lien, and you own the equipment outright.
Merchant cash advances are designed for businesses that accept customer payments by credit and debit card. You borrow against the value of your card sales. As your card sales increase, your borrowing limit goes up. Pay the loan back with a fixed percentage of your card sales on a daily, weekly or monthly basis. Your sales act as security for the loan, no added collateral is required.
Revenue-based financing functions like a merchant cash advance but with higher borrowing limits. Based on the size and regularity of their total revenues, (not just their credit card sales), businesses may receive a lump sum and pay it back over a short-term schedule, typically by small deductions from their daily sales. This type of loan can usually be secured quickly as qualification rules are less intensive and credit scores are not so critical. No added collateral is required.
Nonprofit and community-based lenders can provide SBA Microloans to business owners who may struggle to secure standard business financing. Available up to $50,000, SBA microloans also come with more relaxed qualifying rules and can usually be secured with FICO scores as low as 500, or even with no credit score at all. Be aware that these type of business loans often require a personal guarantee that makes you personally responsible for the debt.
Working with business finance experts can make all the difference when applying for grant funding. Contact Swoop to discuss your borrowing needs, get help with your application and compare top quality small business grants and business loans from a choice of providers. Give your business the chance it deserves. Register with Swoop today.
Written by
Chris is a freelance copywriter and content creator. He has been active in the marketing, advertising, and publishing industries for more than twenty-five years. Writing for Wells Fargo Bank, Visa, Experian, Ebay, Flywire, insurers and pension funds, his words have appeared online and in print to inform, entertain and explain the complex world of US consumer and business finance.
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