U.S. Department of Commerce Invests $13.1 Million in CARES Act Funding to Capitalize Revolving Loan Funds to Help Small Businesses Across Iowa Respond to Coronavirus
WASHINGTON – Today, U.S. Secretary of Commerce Wilbur Ross announced that the Department’s Economic Development Administration (EDA) is awarding $13.1 million in CARES Act Recovery Assistance grants to capitalize and administer Revolving Loan Funds (RLFs) that will provide critical gap financing to small businesses and entrepreneurs that have been adversely affected by the coronavirus pandemic across Iowa.
“President Trump is working diligently every day to support our nation’s economy following the impacts of COVID-19 through the CARES Act,” said Secretary of Commerce Wilbur Ross. “These investments will provide small businesses across Iowa with the necessary capital to rebound from the coronavirus pandemic and, in turn, create a stronger and more resilient state economy for the future.”
“These investments come at a crucial time to help Iowa’s and our nation’s economy come roaring back and provide hard-working Americans with new opportunities,” said Dana Gartzke, Performing the Delegated Duties of the Assistant Secretary of Commerce for Economic Development. “Small businesses are the lifeblood of our communities, and EDA is pleased to invest these CARES Act funds so that Iowa businesses have access to capital to respond to and recover from the coronavirus pandemic.”
“COVID19 has forced us not only to rethink how we live and work but also restructure our economy to continue feeding, fueling and manufacturing high-quality products for the world,” said Governor Kim Reynolds. “These resources come at a critical time for our state as we focus on combating the virus and reopening the economy. I want to thank President Trump, Commerce Secretary Wilbur Ross, and the entire Administration for being a strong, consistent partner for Iowa during these unprecedented times.”
“I’m glad the Economic Development Administration has awarded $13.1 million in CARES Act Recovery Assistance grants to support communities across Iowa,” said Senator Chuck Grassley. “Communities both small and large have been negatively impacted by the COVID-19 pandemic. By using these grants to capitalize and administer Revolving Loan Funds, they can help coronavirus impacted businesses to retain and create jobs while continuing to innovate during these trying times.”
“I am pleased the Department of Commerce’s Economic Development Administration has used the funding included in the CARES Act to established revolving loan funds to help small businesses and entrepreneurs whose businesses have been negatively affected by the COVID-19 pandemic,” said Congressman Dave Loebsack (IA-02). “We must do all we can to ensure our small businesses are able to safely reopen and thrive.”
“As this pandemic continues, Iowa’s small businesses are continuing to face dire economic circumstances – and I’m still hearing from business owners that need additional assistance to keep them afloat,” said Congresswoman Cindy Axne (IA-03). I’m pleased to see more than $2.5 million in funding approved by Congress coming back to help small businesses in central and southwest Iowa preserve jobs, keep their bills paid, and continue serving our communities.”
The EDA investments announced today are:
- East Central Iowa Council of Governments, Cedar Rapids, Iowa, will receive a $4.675 million EDA CARES Act Recovery Assistance grant to strengthen the regional entrepreneurial ecosystem and support industry sectors that have been heavily impacted by COVID-19 by capitalizing and administering an RLF to provide loans to businesses in Benton, Iowa, Johnson, Jones, Linn, and Washington counties.
- Region XII Council of Governments, Carroll, Iowa, will receive a $2 million EDA CARES Act Recovery Assistance grant to foster recovery and resiliency in the business community by capitalizing and administering an RLF that will provide loans to coronavirus impacted businesses in Audubon, Carroll, Crawford, Greene, Guthrie, and Sac counties.
- Southeast Iowa Regional Planning Commission, West Burlington, Iowa, will receive a $1.65 million EDA CARES Act Recovery Assistance grant to capitalize and administer an RLF to provide loans to help coronavirus impacted businesses in Des Moines, Henry, Lee, and Louisa counties retain and create jobs and innovate their operations.
- Southern Iowa Development Group Inc., Creston, Iowa, will receive a $1.529 million EDA CARES Act Recovery Assistance grant to by capitalizing and administering an RLF that will provide loans to coronavirus impacted businesses in Adair, Adams, Clarke, Decatur, Madison, Ringgold, Taylor and Union counties.
- Iowa Northland Regional Economic Development Commission, Waterloo, Iowa, will receive a $550,000 EDA CARES Act Recovery Assistance grant to capitalize and administering an RLF that will allow businesses in Black Hawk, Bremer, Buchanan, Butler, Chickasaw, and Grundy counties affected by COVID-19 to apply for attractive loans to diversify the region’s agriculture-focused economy, sustain the workforce, and foster growth opportunities.
- Mid-Iowa Development Association Council of Governments, Fort Dodge, Iowa, will receive a $550,000 EDA CARES Act Recovery Assistance grant to encourage new or expanded development activities by capitalizing and administering an RLF to provide loans to coronavirus impacted businesses in Calhoun, Hamilton, Humboldt, Pocahontas, Webster, and Wright counties.
- Mid-Iowa Development Fund, Inc., Polk City, Iowa, will a receive a $550,000 EDA CARES Act Recovery Assistance grant to assist small businesses in building on their past successes and forging forward with new ways of doing business by capitalizing and administering an RLF to provide loans to coronavirus impacted businesses in Dallas, Polk, Jasper, Story, Boone, Marion, and Warren counties.
- North Iowa Area Council of Governments, Mason City, Iowa, will receive a $550,000 EDA CARES Act Recovery Assistance grant to provide financing to enhance business development by capitalizing and administering an RLF to provide loans to coronavirus impacted businesses in Cerro Gordo, Floyd, Franklin, Hancock, Kossuth, Mitchell, Winnebago and Worth counties.
- Southwest Iowa Planning Council, Atlantic, Iowa, will receive a $550,000 EDA CARES Act Recovery Assistance grant to capitalize and administer an RLF that will provide loans to support businesses disproportionately impacted by the coronavirus pandemic in Cass, Fremont, Harrison, Montgomery, Shelby, and Page counties.
- Upper Explorerland Regional Planning Commission, Pottsville, Iowa, will receive a $549,831 EDA CARES Act Recovery Assistance grant to grow the region’s critical small business and manufacturing sector by capitalizing and administering an RLF to provide loans to coronavirus impacted businesses in Allamakee, Clayton, Fayette, Howard and Winneshiek counties.
These current EDA RLF grantees are some of the more than 850 existing, high-performing EDA RLF, Economic Development District, University Center, and Tribal grant recipients invited to apply for supplemental funding under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
The CARES Act, signed into law by President Donald J. Trump, provides EDA with $1.5 billion for economic development assistance programs to help communities prevent, prepare for, and respond to the coronavirus pandemic.
On May 7, Secretary Ross announced that EDA is accepting applications for CARES Act Recovery Assistance funding opportunities.
EDA CARES Act Recovery Assistance, which is being administered under the authority of the bureau’s flexible Economic Adjustment Assistance (EAA) (PDF) program, provides a wide-range of financial assistance to eligible communities and regions as they respond to and recover from the impacts of the coronavirus pandemic. For complete information, please visit our recently updated EDA CARES Act Recovery Assistance page.
About the U.S. Economic Development Administration (www.eda.gov)
The mission of the U.S. Economic Development Administration (EDA) is to lead the federal economic development agenda by promoting competitiveness and preparing the nation's regions for growth and success in the worldwide economy. An agency within the U.S. Department of Commerce, EDA makes investments in economically distressed communities in order to create jobs for U.S. workers, promote American innovation, and accelerate long-term sustainable economic growth.