$85 million for Jumpstart Business Recovery

Posted: January 28, 2010

The state of Iowa received $85 million dollars for additional business recovery. This money is available on a first come basis and subject to a duplication of benefits review.

The $85 million dollars will be used to fund four new programs; a summary of each is below.

Program 1: Loan Interest Supplement
This program will provide reimbursement assistance in the form of interest to businesses that have disaster related loans which were executed due to physical damage or economic injury. This includes loans given through the Small Business Administration (SBA) and chartered financial institutions. The maximum award is three years interest expenses (paid quarterly), up to $50,000.

Program 2: Expanded Business Rental Assistance
This program will provide reimbursement assistance to a business located in or planning to locate in business rental space that was physically damaged by the Flood of 2008. For the first time, this program expands the eligible reimbursement to also cover equipment, fixtures and inventory purchased as a result of the 2008 Flood. The maximum combined award for rental and equipment is $50,000; this includes six months of rental reimbursement and 50% of replacement cost for equipment.

Program 3: Commercial Rental Revenue Gap
This program was designed to assist with cash flow for commercial building owners to offset the loss of revenue from rental space that was physically damaged by the 2008 Flood. Awards will be calculated based on the base rent of the property lease at the time of the 2008 disaster. Maximum award amount is $25,000 per unit, up to 12 months of lost rental revenue.

Program 4: Residential Rental Landlord Business Support
This program is designed to assist with cash flow for residential rental unit owners and to offset the loss of revenue from rental space physically damaged by the 2008 Flood. Awards will be calculated based on the base rent of the property lease at the time of the 2008 disaster. Maximum award amount is $15,000 per business (based on business tax ID), up to 12 months of lost rental revenue.

Impacted Iowa City businesses should contact Wendy Ford, Economic Development Coordinator, at 319-356-5248 or wendy-ford@iowa-city.org at the City of Iowa City and applications can be found at: http://www.icgov.org/default/fs/?id=1881

Impacted Coralville businesses should contact Tracy Dekoter, Economic Development Coordinator, at 319-365-9941 x130 or tracy.dekoter@ecicog.org at ECICOG and applications can be found at: http://www.ecicog.org/recovery