Financial Assistance

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CDBG Technical Assistance Grants

The City uses federal Community Development Block Grant (CDBG) funds from the U.S. Department of Housing and Urban Development to support organizations that provide technical assistance, advice and business services to owners of microenterprises and/or person developing microenterprises located within Iowa City. A microenterprise is a small business with five or fewer owners and/or employees.

Technical Assistance Grants to Organizations Providing Microenterprise Development: Grants up to $25,000 are available for organizations assisting microenterprises located in Iowa City. Applications are accepted year-round. Funds available until depleted. Contact the City's Neighborhood Services Coordinator at neighborhoods@iowa-city.org or (319) 356-5121 for more information.
- Technical Assistance Grant Application

Council Economic Development Fund

This fund is used to provide loans, forgivable loans, and grants to business development projects and programs which diversify and increase the property tax base by encouraging the retention and expansion of existing industry and attracting industries that have growth potential and are compatible with existing industries.

Economic Development Loans, Forgivable Loans, and Grants

The City of Iowa City has access to a limited pool of funds to provide direct financial assistance for economic development activities and business development projects. The amount and type of funding available for any one project will depend upon the characteristics of that project and the financial need of the project. All projects requesting funding will be evaluated based upon the City of Iowa City Financial Assistance Eligibility Guidelines.

Economic Development Policies (updated 11.21.2017)
Understanding Gap Analysis and TIF
Key Elements to the Financial Analysis

Partial Industrial Property Tax Exemption

Any projects which add value to real property (building and site improvements) that are classified as either an industrial building, warehousing/distribution center, or research-service facility qualifies for the partial industrial property tax exemption. The exemption is for a period of five years where a portion of the new value in a qualifying is exempted from taxation at the following rate:

Year One: 75%
Year Two: 60%
Year Three: 45%
Year Four: 30%
Year Five: 15%

Tax Increment Financing

Tax increment financing (TIF) is a mechanism used to provide financial assistance for projects within a designated urban renewal area and TIF district. Iowa City's urban renewal areas.

The difference between taxes derived from unimproved, underdeveloped, or underutilized property and those derived after its development, redevelopment, or expansion is the "increment" of taxes which may be pledged by the City to help finance project expenses incurred by the City or the developer in furtherance of the development.

The TIF ordinance makes available to the City incremental tax revenues for repayment of project-related expenses or the provision of a property tax rebate. The incremental tax revenues include those levied by and for other taxing jurisdictions, such as the county, school district, and community college.

TIF financing is available in the form of public infrastructure improvements or in the form of forgivable loans or property tax rebates for qualifying businesses. The amount of available tax increment financing is dependent upon the amount of new taxable property value added to a property.

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