Iowa Targeted Small Business Financial Assistance Program (TSB)
The Targeted Small Business program was established in 1986 to assist women, minorities, persons with disabilities and low-income individuals to establish or expand small business ventures in Iowa.
Eligibility requirements: An applicant must be a resident of Iowa at least six months to be eligible to apply for assistance. Applicants may be asked to provide necessary documentation to prove legal residency.
The business must be certified as a "targeted small business" by the department of inspections and appeals before applying for funding.
Small Business: Means any enterprises which is located in this state, which is operated for profit and has an average annual gross income of less than $4 million. The average annual gross income of the business is based on the prior three years. If the business reaches this criteria the business will no longer be consider as a TSB.
Definitions: Targeted small business(TSB) means a business which is 51 per-cent or more owned, operated, and actively managed by one or more women, minority persons, or persons with a disability. As used in this definition, "minority person" means an individual who is a Black, Hispanic, Asian or Pacific Islander, American Indian or Alaskan native.
"Persons with a disability" means, with respect to an individual, a physical or mental impairment that substantially limits one or more of the major life activities of the individual, a record of the physical or mental impairment that substantially limits one or more of the major life activities of the individual, or being regarded as an individual with a physical or mental impairment that substantially limits one or more of the major life activities of the individual.
Administration for the TSB Financial Assistance program is with the Department of Economic Development, located at 200 E. Grand Ave.Des Moines, Iowa50309
Forms of financial assistance available. The following types of financial assistance may be awarded under this program:
a. Direct loan: The term of loan shall not exceed five years; the interest rate shall not exceed 5 percent awarded under this program.
b. Grant. Grant funds shall only be awarded in instances where the grant will leverage a significant amount of OTHER FINANCING, such as a conventional or SBA LOAN.
c. Maximum funding levels. In no case shall an award exceed $50,000, nor in the case of a loan shall the interest rate charged exceed 5 percent per annum or be less than 0 percent per annum. UNDER NO CIRCUMSTANCES SHALL THE TSB FINANCIAL ASSISTANCE PROGRAM FUND 100 PERCENT OF A PROJECT.
d. The applicant must be able to demonstrate a cash investment of at LEAST 10 percent in the project.
a.Limitation: Comprehensive manage assistance and entrepreneurial development is limited to businesses or individuals that have been awarded TSB Funding. b. Use of TA assistance: Assistance is available only in the form of technical or professional assistance. This may be accomplished by use of department staff or department-contracted professional services in assisting the business to develop:
1.Management skills 2.Inventory controls 3.Financial controls 4.Marketing plans 5.Personnel assistance or other related business assistance.
c.Determination of assistance: The Program Manager of the TSB Financial Assistance Program shall have the authority to approve all technical assistance awards.