The Charles City Area Development Corporation (ADC) and its public and private partners offer local, county, state and private financial incentives that can be packaged to meet the needs of any business or industry. Whether you’re jump-starting a new business, or growing to the next level, Charles City has the financial incentives that are right on the money and right for you.
Through The Charles City Area Development Corporation
- Revolving Loan Fund
In cooperation with the City of Charles City, the Charles City Area Development Corporation administers these funds to stimulate industrial development and expansion within the city limits of Charles City. Intended as an incentive to assist development and expansion, the Revolving Loan Fund has been established to provide gap financing for development projects.
- Private Job Creation Fund (or Capital Fund)
The Job Potential Review committee of the Charles City Area Development Corporation is responsible for overseeing all applications to the Capital Fund. The Capital Fund money was raised from the private sector of the community: businesses, private individuals, and financial institutions. This funding is tied to job creation and the economic value of those jobs to the community.
- Charles City Regional Revolving Loan Fund
In an effort to promote and encourage economic development within the communities of the greater Floyd County region, the Charles City Area Development Corporation has established a revolving loan fund to provide financial assistance to new and expanding businesses. The Regional Revolving Loan Fund is designed to provide supplemental financing in support of new and expanding businesses located within, and adjacent to Floyd County. The revolving loan fund will be used by the CCADC to make loans and loan guarantees for the following purposes:
- To increase employment opportunities, particularly for moderate income residents, by increasing the number and type of businesses within member communities and rural Floyd County.
- To offer financial assistance that will promote the retention and expansion of existing businesses.
- To increase the property tax base.
- To diversify the region’s economic composition by encouraging unique or essential business concerns.
Through Charles City/Floyd County
S.W. Bypass Tax Increment Financing (TIF) District
- City/County will consider funding public infrastructure improvements necessary for industrial growth.
- Loans are available as incentives to assist in industrial growth within the district. The amount of the loan is based upon increased taxable valuation, number of jobs, wage rate and capital investment. Loans are project specific, with Development and Assessment Agreements required.
Charles City Tax Increment Financing (TIF) Districts
Riverside TIF District (includes Central Business District)
- Loans are available for both new and expanding commercial and industrial activities. Loan amount is based upon the increased taxable valuation created by the improvements and is specific to the benefits created for the community.
- A low interest Business Development Loan program is available for business retention and business creation. Amounts are based upon needs of each project and overall benefits created for the community.
South Grand TIF District
- City will consider funding public infrastructure improvements necessary to service new commercial and industrial construction.
East Park TIF District
- City will consider funding public infrastructure improvements necessary for industrial growth.
- Loans are available as incentives to assist in industrial growth within the districts. The amount of the loan is based upon the increased taxable valuation and jobs created by each activity. Loans are project specific, with Development and Assessment Agreements required.
THE STATE OF IOWA
- Grow Iowa Values Financial Assistance Program Demonstration Fund
- High Quality Jobs (HQJ)
- Entrepreneurial Ventures Assistance Program (EVA)
- Economic Development Set Aside (EDSA)
- Brownfield incentives
- Iowa New Jobs Training Program
- Iowa New Jobs Tax Credit Research and Development [R&D] Credit
Through The State Of Iowa
Iowa New Jobs Training Program
North Iowa Area Community College, State of Iowa
Financed by the diversion of the state employee withholding tax. The funds can be used flexibly, from on-site to off-site [other states, nations] to classroom to laboratory settings.
Iowa New Jobs Tax Credit
North Iowa Area Community College, State of Iowa
Can only be used in conjunction with New Jobs Training Program; $1,758 per new job created credited upon Iowa corporate income tax return, may be claimed over 7 years.
Research and Development [R&D] Credit
It is 6.5% in Iowa. The company receives a check annually if there is insufficient state corporate income tax liability. The Iowa qualification statute is identical to federal statute.
Through Iowa Economic Development Authority
Grow Iowa Values Financial Assistance Program
Serves as the funding source for projects that are focused on job creation or retention, value-added agriculture and entrepreneurial efforts.
High Quality Jobs (HQJ)
The High Quality Jobs (HQJ) program provides qualifying businesses assistance to off-set some of the costs incurred to locate, expand or modernize an Iowa facility. This flexible program includes loans, forgivable loans, tax credits, exemptions and/or refunds. The Iowa Economic Development Authority (IEDA) offers this program to promote growth in businesses, which employ Iowans in jobs defined as high-quality by state statute.
Provides pre-seed capital awards of up to $150,000 to encourage prototype and concept development activities by small and medium-sized Iowa companies in the advanced manufacturing, biosciences and information technology industries.
Economic Development Set-Aside (EDSA)
The EDSA program provides 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 on part, on the number of jobs to be created/retained. Funds are provided in the form of loans and forgivable loans.
EDSA fund may be used for a wide range of business development purposes, including: Building construction or reconstruction, land or building acquisition, operating and maintenance expenses, equipment purchases, site development-clearance, demolition and building removal, and/or working capital.
EDSA investments should not be considered sole funding sources. This program is used to leverage other financial support such as bank financing and private investment.
The EDSA program assistance is targeted toward business projects located in communities of under 50,000 population. At least 51% of the created/retained employment opportunities must be made available to individuals presently earning wages defined as low-and moderate income.
Maximum amount of assistance-$500,000.
Through Federal Government
Work Opportunity Tax Credit [WOTC]
The Small Business Act of 2007 more broadly defines the WOTC, creating a classification entitled “disadvantaged community resident”. Therefore, a company hiring a resident of Floyd, Butler or Franklin counties between ages of 18 and 39 is eligible for a 40% federal tax credit on the initial $6000 in wages per new employee. The tax credit is assured to offset tax, whether it is regular tax or AMT.
New Markets Tax Credits
There are two federally designated Census Tracts in Floyd County, as determined by Community Development Financial Institutions [CDFI] Fund. The normal value applied to a single project is $5 million; the business then is granted a 39% federal tax credit over 7 years. The business then has the option of selling the Tax Credits and realizing the cash gain.
Through Local Financial Institutions
Cedar Valley Bankshares Corporate Office
400 N. Main Street
Charles City, IA 50616
Business Development Programs
For more information on Business Development Programs, visit https://www.iowaeconomicdevelopment.com/Business