Small Business Relief Grant Program & Tax Deferral
COVID-19 Relief Programs
FINANCIAL ASSISTANCE AND TAX DEFERRAL FOR BUSINESSES AFFECTED BY COVID-19
Iowa Small Business Relief Grant
Governor Reynolds launched the Iowa Small Business Relief Program to provide financial assistance to small businesses economically impacted by the COVID-19 pandemic. The program offers eligible small businesses grants ranging from $5,000-$25,000 in addition to offering Iowa businesses a deferral of sales and use or withholding taxes due and waiver of penalty and interest. The application window closed March 31. IEDA will not open a new round of applications.
Please note that all award decisions are final agency action.
Will funds received through a state COVID-19 relief program be taxed as income?
Iowa Small Business Relief Grants have been granted state tax exemption by the Iowa legislature. UPDATE JANUARY 20, 2021: The Iowa Department of Revenue has issued guidance for Iowa Small Business Relief Grant recipients on tax exemption of these funds. Please reference the Internal Revenue Service Guidance for information on federal taxes as they relate to COVID-19 relief funds.
Iowa Business Tax Deferral
Information about the Iowa Small Business Tax Deferral program can be found at tax.iowa.gov/COVID-19. The page contains details about eligibility, important dates, frequently asked questions and the application for sales tax deferral and/or withholding tax deferral.
Iowa Small Business Relief Grant Recipients - Beware of IRS Scams
Unfortunately, criminals are taking the unprecedented COVID-19 pandemic as an opportunity to exploit the public. It is critical now more than ever to remain vigilant for scams that are attempting to steal your personal information or money. The IRS will not call and ask you to verify your personal information. Do not give out your social security number, bank account, debit account or PayPal account information.
If you receive a call from an individual claiming to be employees of the IRS, hang up. The IRS will not call you. Do not engage with scammers. If you receive calls, texts or emails claiming that you can get your money faster by sending personal information or clicking on links, delete them. Do not click on any links in those emails. You may report scams to the Attorney General of Iowa Consumer Protection Division by emailing them at email@example.com or by calling 515.281.5926 or toll-free at 888.777.4590.
- Businesses employing between 2-25 employees prior to March 17, 2020*
- Businesses must have a physical location within Iowa; and
- Businesses impacted by the COVID-19 virus
How Do I Apply?
The application window closed March 31. IEDA will not open a new round of applications.