More financial support coming for Iowa small businesses

By Adam Moore

There’s more support coming for Iowa small business owners facing economic pain from the COVID-19 pandemic, in the form of new relief grants, tax deferrals and low-interest loans.

Gov. Kim Reynolds yesterday announced the launch of a new Small Business Relief Program that will provide financial assistance to Iowa-based small businesses with two to 25 employees experiencing business disruption. Eligible companies can receive grants ranging from $5,000-$25,000, in addition to the potential deferral of sales and use or withholding taxes due and a waiver of penalties and interest.

The program is expected to be in high demand, but is not first-come, first-serve, so state officials counseled businesses to “please be patient and try again later if you are unable to access the application.” That is available here. The deadline to apply is March 31 at noon.

Ms. Reynolds yesterday also announced that first quarter unemployment tax payments that were due April 30 will now be delayed to the second quarter and due July 31, for those companies with 50 or fewer employees – a cutoff that includes more than 95% of Iowa businesses.

Eligible employers must be in good standing with no delinquencies in quarterly payments. All employers must file Quarterly Employers Contribution and Payroll Report electronically by 4:30 p.m. on April 24 to avoid late report filing penalty.

“Iowa’s small businesses are the lifeblood of our communities and the engine behind our economy,” Ms. Reynolds said in a statement. “Now more than ever we need to make sure they have the ability to manage their cash flow. It’s critically important that we continue to take steps in support of our small business community during these challenging times.”

The U.S. Small Business Administration has also announced that business owners in Iowa are eligible to apply for low-interest loans due to coronavirus disruptions under an economic injury disaster declaration from the SBA.

The SBA’s Economic Injury Disaster Loan (EIDL) is available statewide to small businesses and private, nonprofit organizations. EIDLs provide working capital to help small businesses survive until normal operations resume after a disaster.

The loan offers up to $2 million in assistance and can provide vital economic support to small businesses to help overcome the temporary loss of revenue they are experiencing. Interest rates will not exceed 4%, and the repayment period will be determined by the borrower’s ability to repay the loan.

For additional information and to apply for Economic Injury Disaster Loans, click here.