| Iowa's Business Incentives - 6
Community Economic Betterment Program
(CEBA)
 HOW IS CEBA USED
- Businesses creating or retaining jobs
- Businesses with starting wages of 90% of county/regional wage
- Building acquisition, construction, or remodeling
- Machinery and equipment purchases
- Operating and maintenance expenses
- Permanent working capital increases
- Site development - clearance, demolition and building removal
- NO refinancing or payoff of existing debt
FINANCIAL ASSISTANCE
- Loans, forgivable loans, royalty agreements
- Typical award $75,000 to $250,000
- Per job general guideline of $2,000 to $3,000 per new job created or retained
- Maximum award $1 million
- Typical project is one half loan (low or zero interest) and one half forgivable loan (a grant, in other words, with no repayment)
- Repayment of low to zero interest portion is repayable over 5 to 7
years
SOME REQUIREMENTS
- Usually a 30 day time "turn around"
- Early involvement by IDED in project assures "best" chance of funding
- Usually 2 to 3 year project duration to create new jobs and 3 years following maintenance period for new jobs
- CEBA funds cannot exceed 50% of project costs
- Local financial "match" typically 25% to 30% of CEBA amount ("in-kind" contributions may count toward local match)
- Must provide medical insurance for employee and provision of dental and vision insurance, and retirement plan (401-K etc), while not required, enhance an application.
RECENT ENHANCEMENT
- Venture component - state takes equity or royalty position
- Reduced community financial support - now as low as 15% of CEBA funds
- Job maintenance period eliminated
- New wage criteria
RATING CRITERIA
- Local community financial support (strength of local "match")
- Community need (unemployment rate, recent plant closing etc)
- Private business contribution
- Project impact (cost per new job, company turnover, fringe benefits)
- Economic impact (exporting of product, instate competition, impact outside of Iowa, potential growth)
- Reliability/feasibility (viability of business itself)
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