| Iowa's Business Incentives - 7
Economic Development Set-Aside
(EDSA)
HOW IS EDSA USED
- Targeted toward business projects in communities of under 50,000 population
- Businesses creating or retaining jobs and making new capital investments
- Businesses with starting wages of 75% of average county wage (must exceed $7.00 per hour)
- Building acquisition, construction or reconstruction
- Land acquisition
- Machinery and equipment purchases
- Operating and maintenance expenses
- Permanent working capital
- Site development - clearance, demolition, and building removal
FINANCIAL ASSISTANCE
- Loans and forgivable loans (grants)
- Loans may be repaid to community (creating a revolving loan fund)
- Per job general guideline of $2,000 per new job created or retained
- Maximum award of $500,000
- Process typically takes 30 days from application submission
SOME REQUIREMENTS
- Local public hearing
- Environmental review (usually takes 30 days)
- Davis-Bacon law applied for labor standards and wage rate for construction funded with assistance.
- Local revolving loan fund opportunity
- Loan agreement between community and business
- Local "match" not required but highly encouraged
 REVIEW CRITERIA
- Much like CEBA program
- Number and quality of jobs
- Competition within the industry
- Amount of other investment leveraged
- Financial need
- Community's need
- Community financial participation (10% to 15% suggested as a guideline but none is
required)
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