Self-Employment Loan Program (SELP)

The Self-Employment Loan Program (SELP) assists in the creation and expansion of small businesses in Iowa by low-income individuals or persons with a disability.

To receive a SELP loan, applicants must have an annualized family income that does not exceed current income guidelines for the program. An applicant is automatically eligible for SELP if they receive Family Investment Plan assistance or other general assistance such as disability benefits. SELP funds are also available to applicants who are eligible under the Job Training Partnership Act or certified as having a disability under standards established by the Iowa Department of Education, Division of Vocational Rehabilitation Services. Applicants for this program must obtain a local sponsor for the application process.

SELP loans of up to $10,000 with a 5 percent interest rate are available. The loan is to be repaid in monthly installments over a five-year period, and the first payment may be deferred for three months for a start-up business.

Community Economic Betterment Account (CEBA) & Economic Development Set-Aside (EDSA). Two primary investment tools administered by the Iowa Department of Economic Development (IDED) are the Community Economic Betterment Account and the Economic Development Set-Aside (EDSA) programs. These programs can help finance business operations; including biosciences, advanced manufacturing and information solutions/financial services.

The CEBA and EDSA programs provide financial assistance to companies that create new employment opportunities and/or retain existing jobs, and make new capital investment in Iowa. The amount of funding is based, in part, on the number of jobs to be created/retained. Funds are provided in the form of loans and forgivable loans.

CEBA and EDSA investments are used to leverage other financial support such as bank financing and private investment, as well as local community support.

The CEBA program also contains a modernization project component. This part of the program is specifically designed for business investing in machinery and equipment and/or technology upgrades to improve or maintain their competitive edge in their respective markets.

The EDSA program assistance is targeted toward business projects located in communities with populations of less than 50,000. The purpose of the program is to create/retain quality employment opportunities for low- and moderate-income individuals.

The amount of funding available on a per-project basis varies between the programs. The CEBA and EDSA programs can provide assistance up to $1 million. As an alternative, nontraditional, short-term float loans, or interim loans greater than $1 million may be available. The funding level for start-up companies varies depending upon employee wage rates. The maximum assistance available through the EDSA program is $1,000,000.

CEBA Special Consideration for Start-Up/Early-Stage Businesses

 The CEBA program also contains a "Venture Project" component specifically designed for early-stage and start-up businesses. Financial assistance is provided in forms conducive to the company's stage of maturity. The Venture Project component allows for longer-term job creation and investment performance periods than otherwise offered through CEBA.

Eligibility Requirements:

The proposed or existing operation must be located in Iowa

The business must create or retain jobs that meet CEBA/EDSA county or regional wage standards

The business must make a capital investment related to the proposed project

The business must demonstrate a need for the requested funds

The project must not proceed prior to the funding decision

Must meet wage thresholds requirements.

Project Evaluation. Projects are also evaluated according to the following criteria:

The quality of the created/retained jobs (i.e., employee wages and benefit packages)

The significant, positive impact the project makes on the community and the net economic gain to the state

For CEBA participation, the amount of community support to be contributed to the project

Site development: clearance, demolition and building removal

The impact of the proposed project on in-state competitors

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