Running a small business requires capital, especially when starting out or expanding. Many of Iowa’s 272,000 small businesses cover their costs using operating income or cash reserves, but sometimes other funds are needed.
Other funding sources can help new start-ups get established, growing businesses expand operations, or any business acquire property, equipment or inventory. For some businesses, other funding might be necessary to pay operating costs following an emergency or disaster.
When additional funds are desired or needed, businesses in Iowa have several ways to pursue acquiring capital. While loans and outside investors are common sources, grants are usually a better option for businesses that can qualify.
The good news is that there are many grants which Iowa businesses may qualify for. The state offers a variety of small business grants, in order to support the small businesses that account for 99% of all its businesses. There also are grants from private companies, nonprofits, the federal government and others.
Here are the top 2025 small business grants in Iowa that your business might want to apply for.
Small business grants may be awarded by governments, foundations, nonprofits, companies, or other entities. The awards don’t have to be repaid, but are essentially “free money” for the business to use as allowed by the grant. Most grants have specific criteria for applying, and require that funds are used in alignment with the grant’s aims and business’s proposal.
By providing grants, governments and other entities hope to help Iowa’s many small businesses succeed and thrive. A grant might be used to start a business, expand a business, purchase property or equipment, make eco-friendly improvements, serve a specific demographic, or for any number of other purposes.
Grants aren’t the only way for businesses to get a cash infusion, but they’re one of the best. They have multiple benefits compared to other options:
The Small Business Collateral Support Program helps qualifying businesses secure loans, including SBA and other loans. These loans can be used for anything from start-up costs and extra working capital, to purchasing supplies or hiring employees.
The grant will provide up to 40% of the collateral needed on a commercial loan of $50,000 to $250,000. Most businesses use this to simply qualify for a loan. It might alternatively be used to make an unsecured loan a secured one, in order to hopefully get a lower interest rate.
Although the program requires obtaining a loan, the grant amount doesn’t have to be repaid.
In order to qualify, an Iowa business must be majority-owned (51% or more) by one of the following: women, minority group individuals, disabled individuals, veterans, long-term residents of a rural community, and long-term residents of a CDFI investment area. (CDFI areas are Community Development Financial Institution areas.)
The application process is typically handled by the lender who’s underwriting a commercial loan. Your loan officer should be familiar with the program and know whether you qualify. There’s a spreadsheet of approved lenders and their phone numbers.
The Iowa Innovation Continuum functions as a publicly funded state venture capital (VC) firm. The continuum doesn’t provide standard grants, but rather makes investments akin to how a VC firm might, through loans or royalty agreements.
The continuum consists of five different funds: Proof of Commercial Relevance (POCR), Demonstration Fund (Demo), IIA Launch Fund, IIA Propel Fund and IIA Expansion Fund. Which fund a business qualifies for depends on what stage of development or growth it’s at. (IIA stands for Iowa Innovation Acceleration.)
Qualifying businesses need to be for-profit ventures that seek to bring technology from one of Iowa’s universities to market. The goal is to commercialize inventions and innovations developed at Iowa’s colleges and universities.
Although many awards are given as loans, some are given in exchange for a royalty agreement on future sales — potentially even at early stages before commercialization is proven. A royalty award can provide interest-free capital for research, at a time when other funding is difficult to obtain.
Iowa’s Technology Assistance Program (TAP) is government-funded, but managed by Iowa State University. The program provides grants and expertise to businesses developing new technologies.
Participating in the program requires collaborating with researchers at one of Iowa’s public education institutions, namely Iowa State University. A faculty member might provide expertise on materials, engineering, or another aspect of developing new inventions and innovations.
Grant funds awarded by the program don’t need to be repaid, and there’s no royalty involved.
Businesses interested in this program should contact the Center for Industrial Research and Service at Iowa State University, at either [email protected] or (515) 294-3420. All applications are handled by the office.
In addition to the more general Iowa business grants, there are several niche programs for qualifying businesses.
The WIIN Lead Testing of Drinking Water Grant helps remove lead-contaminated water from childcare and childhood educational programs. The program is primarily for public schools, but private schools and childcare centers can also apply.
The grant is good for up to remediation and/or replacement expenses for up to 5 water outlets (e.g. drinking fountain, sink faucet). The maximum amount per outlet is $1,000, and there’s a maximum total of $5,000. Any amount awarded is given as reimbursement.
The application should be completed and submitted to the program coordinator. You can reach the childcare centers that should contact the Iowa Department of Education.
The Historic Preservation Tax Credit helps developers rehabilitate historic buildings throughout the state. The program will pay up to 25% of qualified rehabilitation expenses (QREs) as defined by the Internal Revenue Service. The state program essentially mirrors the federal one.
Qualifying buildings must either be on the National Register of Historic Places, or be determined by the Iowa State Historic Preservation Office to be eligible.
The grant is issued as a tax credit on state taxes. It’s best to work with an accountant, who should be familiar with this credit.
The Central Iowa Job Training Program Grant provides funds for job training of unemployed and underemployed individuals in one of Central Iowa’s counties. Government agencies, nonprofits, and businesses providing on-the-job training are welcome to apply.
The grant is funded each year, with $100,000 having been designated for 2024. The application window should reopen on July 1, 2025. Applications are submitted to Iowa Workforce Development.
Businesses that meet certain qualifications can access federal grants across the United States, including those located in Iowa. These grants are often substantial if your business qualifies.
The Small Business Innovation Research (SBIR) program helps businesses pursue innovations and inventions, with the intention of eventual commercialization. This program is divided into Phases I, II and II, which focus on technical development, prototype development and commercialization. Grants can be anywhere from tens of thousands, to tens of millions for select Phase III grants.
SBIR grants are awarded by a number of federal agencies. Check whichever federal agency oversees your industry, to find out more information about SBIR grants that your business might qualify for. The general application process is detailed on the SBIR website.
The Small Business Technology Transfer (STTR) program is much like the SBIR Grant Program. The STTR is also for businesses pursuing the commercialization of significant innovations, and it likewise has Phase I, Phase II and Phase III grants.
The main distinction is that the STTR program requires applicants to partner with a nonprofit research institution, such as a university. The SBIR program encourages, but doesn’t require, such partnerships.
STTR grants are awarded by a number of federal agencies. Check whichever federal agency oversees your industry to find out more about these grants. The SBIR website is a good source of general STTR application information, too.
The U.S. Small Business Administration (SBA) supports small businesses through various funding options, including several grant programs (along with loan programs). Programs vary in scope, requirements, criteria and award amount.
General SBA grant information is available through the SBA website. For more specific information, contact the closest SBA office. There are offices in Des Moines and Cedar Rapids.
A range of companies and private foundations have their own small business grant programs. Some are focused on diversity, technological innovation, economic development, sustainability or something similar, while others are more general.
FedEx hosts an annual grant contest open to U.S.-based small businesses with fewer than 100 employees. In 2024, awards included one grant of $50,000 and nine $20,000 grants.
To qualify, your business must be based in the United States and utilize FedEx shipping services. The best way to get updates for the 2025 FedEx grant contest is by signing up for the company’s emails.
The Visa Everywhere Initiative is a global competition offering funding and networking opportunities to startups in the fintech industry, specifically those addressing challenges in commerce and payment solutions.
Eligible applicants are technology companies focused on payments and commerce. You can find more information and apply for the 2025 program (once applications open) on Visa Everywhere Initiative.
The Freed Fellowship awards a $500 micro-grant each month to a U.S.-based small or micro business. Monthly winners are also eligible for a year-end grant of $2,500.
To apply, visit the Freed Fellowship Grant page. The deadline for each month’s application is the last day of that month, but you can reapply in subsequent months if needed.
Many different Iowa business grants are available, including the ones listed and numerous others. Check which ones your business qualifies for, and be sure to apply for any that could help. You might win an award that helps take your business to the next level.
This portion of our website is for informational purposes only. Tailor Brands is not a law firm, and none of the information on this website constitutes or is intended to convey legal advice. All statements, opinions, recommendations, and conclusions are solely the expression of the author and provided on an as-is basis. Accordingly, Tailor Brands is not responsible for the information and/or its accuracy or completeness. It also does not indicate any affiliation between Tailor Brands and any other brands, services or logos.
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