CEBA — HQJC Disaster Recovery
Additional Resources for Businesses Affected by Disaster
In addition to the “Jumpstart” Small Business Assistance Program, businesses affected by recent disasters may request that the Iowa Department of Economic Development (IDED) Board waive certain requirements associated with the State of Iowa’s traditional financial assistance programs.
Who is eligible to seek a waiver?
A non-retail business which:
- Is located in a presidentially-declared disaster area;
- Applies for assistance within 12 months of the date of the presidential disaster declaration;
- Has sustained substantial physical damage1 resulting from the disaster;
- Will commit to bringing its employment level up to at least 90% of its pre-disaster employment level within six months of receiving assistance from the State; and
- Will commit to paying wages that are no less than wages paid prior to the disaster.
1 “Substantial damage” means damage of any origin sustained by a structure whereby the cost of restoring the structure to its previous condition would be equal to or greater than 50% of the market value of the structure before the damage occurred.
Available Assistance
CEBA — Disaster Recovery
A business seeking a loan or forgivable loan for disaster recovery may apply to IDED for assistance through the Community Economic Betterment Account (CEBA) Program. As part of the application process, the business may request a waiver of one or more program requirements provided such requirement is non-statutory. Examples of requirements which are non-statutory or established by administrative rule include:
- Qualifying wage requirement.
- Limitation on funding projects that have started (project initiation).
- $500,000 limit on the forgivable loan portion of the award.
- Requirement that the local government invest in the project.
The business must meet all the statutory requirements outlined in the CEBA law (Iowa Code Sections 15.315-15.325). Award amounts will be determined on project-by-project basis.
HQJC — Disaster Recovery
A business seeking tax credits and/or refunds may apply to IDED for assistance through the High Quality Job Creation (HQJC) Program. As part of the application process, the business may request a waiver of the average county wage calculation. All other requirements of the HQJC program will be applicable.
If the business’ application and waiver request is approved, the business may receive one or more of the following based on the amount of qualifying investment in the project:
- Investment tax credit equal to 1% of the qualifying investment (amortized over 5 years).
- Refund of sales and use taxes paid to contractors or subcontractors during construction.
- Doubling of the state’s refundable research activities credit.
How to Get Started:
Companies seeking assistance for disaster recovery through the CEBA and/or HQJC programs should submit a completed Project Review Form to the Department. The Project Review Form can be found at:
http://www.iowaeconomicdevelopment.com/applications/bus_dev/
Upon receipt of the Project Review Form, IDED’s Business Finance staff will review the information provided and contact the company or its representative with further directions.
To Learn More: