IEDA approved more than $6.4 million in loans to startups in 2024
The Iowa Economic Development Authority awards funding to startups in the form of low-interest loans through its Innovation Continuum, which includes five funds that are designed to offer companies non-dilutive funding at every stage of business growth. The funds are: Proof of Commercial Relevance (POCR), Demonstration Fund and the Innovation Acceleration Fund, which offers Launch, Propel and Innovation Expansion awards.
These financing options are geared toward companies operating in the fields of advanced manufacturing, biosciences or information technology. Each fund in the continuum also requires the company to supply matching funds, which could come from family and friends funding, outside investors or federal funding programs like the Small Business Innovation Research program.
Starting in 2023, IEDA has provided additional funding through the U.S. Treasury’s State Small Business Credit Initiative (SSBCI). Iowa received $96 million from SSBCI, and $22 million was allocated to increasing the amount of funding available through each of IEDA’s innovation funds. For example, before the SSBCI funding, companies could receive a POCR loan of up to $25,000; now POCR loans of up to $50,000 are available.
In the last quarter of 2024, six startups received $650,000 in loans and one organization was awarded a $500,000 Community Attraction and Tourism grant. Including funding from the fourth quarter, IEDA awarded a total of $6,475,000 in loans to 21 Iowa startups in 2024. The state agency also awarded one CAT grant for $500,000 and one Entrepreneurial Investment Award of $200,000 to support organizations.
Here are the organizations that received funding through IEDA programs in the fourth quarter of 2024.
Iowa Innovation Continuum
Invasive Removal – Ames: $50,000 Proof of Commercial Relevance (POCR) loan. Invasive Removal is developing tools to combat invasive species in forests and prairies.
Flete Inc. – Des Moines: $100,000 Demonstration Fund loan. Flete has created a workflow management tool for businesses operating fleets of commercial vehicles.
Upvote Inc. – Des Moines: $100,000 Demonstration Fund loan. Upvote has developed a program to automate policy discovery, tracking and analysis for government relations professionals.
Renner Ag Solutions – Klemme: $50,000 POCR loan. Renner Ag aims to provide a safer and more efficient solution for the grain storage process with its product, AgriNet, which uses technology to operate a device that can clean out grain bins.
GW Nutrition Inc. – Slater: $100,000 Demonstration Fund loan. GW Nutrition has developed technology to improve the acceptance of plant- and algae-based proteins. The company’s patented technology uses a proprietary light delivery system to reduce microbial contamination while also moderating the sensory characteristics, such as color, flavor and odor, of alternative proteins.
State Small Business Credit Initiative
FBB Biomed Inc. – Coralville: $250,000 Innovation Acceleration Launch Fund loan. FBB Biomed aims to build one blood test for all health states and diseases. The development of a web app will make self-service available to customers.
Community Attraction and Tourism Grant Program
NewBo City Market – Cedar Rapids: $500,000 CAT grant. The nonprofit small business incubator will use the grant to execute its Next Level Local project, which will enhance the nearly 21,000-square-foot existing market and add nearly 9,000 square feet of new construction.
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