Local Financial Assistance
Ames Revolving Loan Fund
The City of Ames Revolving Loan Fund was developed to provide for a local match for various state financial assistance programs. The purpose of the loan is to assist area businesses in expansions and relocation. The program was designed for gap financing with city loan representing no more than 15% of total financing. The emphasis is on the projects that expand the tax base and create quality jobs. Loans are typically made for five years at 1/2 of prime. The maximum amount of any one loan is $50,000. Generally, awards are between $1,000-$2,000 per job created. Applications can be made at any time. Loan applications are reviewed by a revolving loan fund committee and subject to Ames City Council approval.
Ames Seed Capital Fund
The Ames Seed Capital Fund is a pool of funds contributed by private sources (corporations and individuals) for the purpose of providing equity financing. The Fund is a program of the Ames Economic Development Commission that is designed to provide working capital assistance for small business start-ups and expansions. The investment is structured as a variation of stock or debentures with an option to purchase stock at a fixed dollar amount. The Fund's goals are to provide a solution to specific small business financing needs, help create and retain jobs, and provide positive economic impact to the community. The Fund shall be profit oriented with an expected return of two to ten times the original investment over a five year period.
Boone Downtown Incentive Fund Grant
The goal of this program is to encourage remodeling and repair work on commercial buildings in the Downtown District consistent with proven Main Street practices, including those that retain unique historic elements and use brick/masonry materials. New construction is also eligible. Up to $30,000 is available per project. For approved projects, the Incentive Fund will cover up to 40% of qualifying expenses. Applications can be submitted through the City of Boone website.
Boone Housing Incentive Program
The goal of the Housing Incentive Program is to encourage and promote the construction of new single-family homes within the city limits of Boone, Iowa. For every custom single-family home or townhome built within the city limits of Boone, Iowa that meets all the qualifications, the homeowner will receive $10,000.00 upon the submittal to the City a Certificate of Occupancy. Applications can be submitted through the City of Boone website.
Community Investment Fund
The City of Ames and the Ames Economic Development Commission can provide up to $50,000 in financial assistance to provide a local match for State financial assistance programs and to fill financing gaps in economic development projects. The assistance is typically in the form of a no-interest or low interest loan, but it can take the form of a forgivable loan for projects with high paying jobs and significant capital investment.
Industrial Property Tax Exemption
The Ames City Council has approved an ordinance for a partial exemption from property tax of the actual value added to real estate by the new construction of industrial real estate, research facilities, warehouses, owner-operated cattle facilities, and distribution centers. The amount of actual value added that is eligible to be exempt from taxation is as follows: Year 1, 75%; Year 2, 60%; Year 3, 45%; Year 4, 30%; Year 5, 15%. Applications are filed with the Ames City Assessor and must be submitted by February 1 after the year of construction. Companies may file for prior approval.
State Financial Assistance
The state of Iowa offers a number of programs that provide financial assistance to new and expanding businesses. Visit the Iowa Economic Development Authority website to learn more.
Research and Development Tax Credit
The credit offers up to 6.5% of the company's qualifying research expenditures in Iowa. Companies approved for expansion in an Enterprise Zone or under the High Quality Jobs program may be eligible for a supplemental tax credit for qualifying research and development activities.
Renewable Chemicals Production Tax Credit
This first of its kind tax credit incentivizes the production of high-value "building block" chemicals based on weight ($0.05 per pound produced) with annual limits of $1 million for start-ups and $500,000 for established businesses.
The Iowa Industrial New Jobs Training (260E) Program provides eligible businesses with new employee training.
Federal Financial Assistance
There are a number of federal programs that provide financial assistance to new and expanding businesses. Many of these programs are available through the USDA, SBA, EDA, and DOT. Please contact the AEDC today and we'll help find the right program for you!