The COVID-19 outbreak has dealt a significant blow to Iowa’s local economy. Businesses throughout the state have closed in response to Governor Reynold’s shut down orders, and while these measures are clearly the right steps in fighting back against this virus by flattening the curve, small businesses are struggling to survive. Fortunately, the state is taking measures to address the economic slow-down.
The Governor announced the creation of the Small Business Relief Program and Tax Deferrals on March 23, 2020. This program provides grant opportunities ranging from $5,000-$25,000 to small business economically impacted by the COVID-19 pandemic. Additionally, the state is also offering qualified applicants a deferral on sales and use or withholding taxes currently due and owing, and a waiver of penalty and interest fees.
In order to be eligible to receive a grant under the program, businesses must:
1. Be experiencing business disruption due to COVID-19 pandemic;
2. Have employed between 2-25 people prior to March 17, 2020; and
3. Must have a physical location in Iowa.
Successful applicants can use grant funds to either maintain operations or reopen operations that were shut down as a result of the COVID-19 pandemic. Funds must not be used to pay debts or costs incurred prior to March 17, 2020.
In order to apply, applicants must visit Iowa Economic Development’s webpage or access the following link: https://www.iowaeconomicdevelopment.com/reliefgrants.
Before You Apply: Required Documents
Before starting the application, applicants should have their standard business ownership information prepared, including, but not limited to, address, EIN, applicable tax permit numbers, 3-month income statement, revenues history, balance sheet, and payroll information. The application may require more information, so it’s important that applicants have all of their business documents and information prepared.
Applications must be submitted no later than Tuesday, March 31, 2020, at 12 noon. Consequently, applicants have a very short window to apply. Although all applications received will be reviewed, it’s critical that applicants complete and submit their application as soon as possible.
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