If you work in the field of economic development, and more specifically if you have an economic interest in the real estate industry, then you know the value of stability in the marketplace. Significant events with adverse economic impacts, such as COVID-19 and a derecho, can have a cascading effect on jobs, families, and the economy generally. That is why it has been important for government, non-profit organizations, and businesses to support activities that collectively create a safety net – to provide some measure of economic stability. It’s one of the reasons the State of Iowa, local governments and community organizations created their own economic recovery grant programs. Other nationwide support systems, such as unemployment benefits, the Paycheck Protection Program and various forms of natural disaster assistance, have also been important.
To be sure, these are imperfect systems, and one can debate the effectiveness of various policy alternatives or the extent to which we can borrow from the future to pay for them. But there is no question that they have provided an important lifeline to many during these challenging times. While some programs have ended or are winding down, there are some that will continue for a few months longer. Two of them are designed to help people stay in their homes and businesses by assisting with rent and utility expenses.
Iowa COVID-19 Eviction and Foreclosure Prevention (EFP) Program
The Iowa Finance Authority (IFA) reported last week that rental assistance has been provided to just over 2000 applicants equaling approximately $4.8 million. On the foreclosure side, the EFP Program has awarded nearly $135,000 to 61 applicants. Approximately $15 million in funds remain in the program, which will remain open until funds are exhausted or until December, 2020, whichever comes first.
IFA reports that the program has seen a significant increase in the number of applications being submitted since August 1. On Tuesday, August 4, it was announced that Iowans who have been receiving $600 a week in federal unemployment stimulus benefits may now apply for the rent and mortgage assistance. For more information, visit https://www.iowafinance.com/covid-19-iowa-eviction-and-foreclosure-prevention-program/.
Iowa Small Business Utility Disruption Prevention Program
The Iowa Economic Development Authority (IEDA) recently announced that more Iowa small business owners and nonprofits are now eligible to receive financial assistance with electric and natural gas utility bills. Eligibility criteria for the Iowa Small Business Utility Disruption Prevention Program has been expanded to include utility assistance for eligible small businesses and nonprofits for electric or natural gas service provided between March 17, 2020 and October 15, 2020.
To be eligible, small businesses and nonprofits must have experienced a COVID-19 loss of income. Financial assistance of up to $7,500 is available. Payment’s would be made directly to an applicant’s utility service provider. The program will accept applications through October 31, 2020 or until all funds have been exhausted. The state allocated approximately $14.5 million of federal CARES Act funds for the program when launched in early July.
For more information, visit https://www.iowaeconomicdevelopment.com/Business/energy-recovery or call 515.348.8914 (toll free: 855.300.2342).
The Enterprise Iowa team encourages our clients and affiliated organizations to share this information with everyone in their various networks. Let’s do what we can to ensure that the individuals and businesses in need of this assistance get connected with these resources. It is the type of help that can increase economic stability for the benefit of all.