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Humboldt County Incentives & Financial Services

 Tax Increment Financing (TIF)

The Humboldt City Council has approved the use of property taxes resulting from the increase in taxable valuation due to construction/reconstruction of new industrial or commercial facilities to foster economic development activities. City councils or county boards of supervisors may use the property taxes resulting from the increase in taxable valuation due to construction of new industrial or commercial facilities to provide economic development incentives to a business or industry. Tax increment financing may be used to pay the cost of public improvements and utilities that will serve the new private development, to finance direct grants or loans to a company, or to provide a local match for federal or state economic development assistance programs. TIF does not increase a company's property taxes, but it allocates virtually all of the taxes that are paid back to the city or county, where they may be spent to benefit the company.

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 Central Business District Urban Renewal Area TIF Revolving Loan Fund

The Central Business District Urban Renewal Area TIF Revolving Loan Fund is to assist expansion of existing businesses as well as out of town businesses want to locate in the Humboldt Central Business District. Funds may be used to assist for-profit and not-for-profit organizations.

The RLF is structured as a tandem loan program that works in cooperation with another sponsoring financial institution. Any loan request must have the support of at least one participating financial institution. The private lender's portion of the project will be an interest rate as negotiated between the lender and the borrower. The RLF's portion of the loan will be flexible in terms of interest rates, but in no case lower than prime commercial rate. Maximum loan will be 50% of total project cost, not to exceed $300,000.

Basic qualifications for application to the fund are:

  • Project location within the Humboldt Central Business District Urban Renewal Area
  • Inability obtain sufficient funds to cover total project cost from private lenders (financial institutions).
  • A minimum owner contribution to the project of 50% of total costs.

The Humboldt City Council reserves the right to negotiate all terms of all loans, based on size and scope of the project and its financial impact on the local economy. All loans must be approved by a resolution of the Humboldt City Council.

Loan requirements include:

  • Paying a non-returnable application fee of $100.
  • Accepting the interest rate determined by the City of Humboldt
  • The recipient must be willing to contract for such management and/or technical assistance determined necessary by the City, upon recommendation of the loan committee.

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 Enterprise Zones
Humboldt County is designated as an Iowa Enterprise Zone. Eligible businesses locating or expanding in an Enterprise zone area may receive a package of tax credits and exemptions. Manufacturers and other businesses locating new facilities or expanding existing facilities and creating new jobs in economically distressed areas of Iowa have a new incentive to do so. Eligible businesses locating or expanding in an Enterprise Zone may receive property tax exemptions and expanded state tax credits.

Business locating or expanding in an Enterprise zone may receive the following tax benefits:

  • Property tax exemptions on all or part of the costs of improvements to land and buildings for up to 7 years.
  • An investment tax credit of up to 10% on corporate income taxes for investments in machinery and equipment, land, buildings, and improvements to existing buildings.
  • Refund of sales, services, or use taxes paid to contractors or subcontractors during construction.
  • A 13% research and development activities credit (refundable) on corporate income taxes.
  • Supplemental new jobs training withholding credit of 1 ½% of the gross wages. This credit is in addition to, and not in lieu of, the withholding credit of 1 ½% authorized for the Iowa New Jobs Training Program.
  • To receive these benefits, businesses must:
  • Create at least 10 full-time, project-related jobs, and maintain them for at least 10 years.
  • Pay 80% of a standard employee medical and dental insurance plan or a monetarily equivalent benefit plan. Pay 90% of the average county or regional wage, whichever wage is lower.
  • Make capital investments of at least $500,000.
  • Not be a retail establishment.

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 Community Economic Betterment Account (CEBA)

The CEBA program provides financial assistance to companies that create new employment opportunities and/or retain existing jobs, and make new capital investments. The amount of funding is based, in part, on the number of jobs to created/retained. Funds are provided in the forms of loans and forgivable loans. Projects eligible for CEBA funding include, but are not limited to, the following:

  • Building construction or reconstruction
  • Land or building acquisition
  • Equipment purchases
  • Operating and maintenance expenses
  • Site development – clearance, demolition and building removal
  • Working capital

CEBA investments should not be considered a sole funding source. The program leverages other financial support such as bank financing and private investment.

The CEBA program also contains a modernization project component. This part of the program is specifically designed for business investing in machinery and equipment and/or technology upgrades to improve or maintain their competitive edge in their respective markets.

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 Economic Development Set-Aside Program (EDSA)

The EDSA program provides financial assistance to companies that create new employment opportunities and/or retain existing jobs, and make new capital investments. The amount of funding is based, in part, on the number of jobs to be created/retained.

  • Projects eligible for EDSA funding include, but are not limited to, the following:
  • Building construction or reconstruction
  • Land or building acquisition
  • Equipment purchased
  • Operating and maintenance expenses
  • Site development – clearance, demolition and building removal
  • Working capital

EDSA investments should not be considered a sole funding source. The program leverages other financial support such as bank financing and private investment.

The EDSA program assistance is targeted toward business projects located in communities of fewer that 50,000 population.

Assistance is provided in the form of loans and/or forgivable loans. The maximum award is $1 million per project. Applications are filed by cities or counties on behalf of eligible businesses, which need to meet certain regional/county wage standards.

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 Iowa Value-Added Agriculture Products & Processes financial Assistance Program (VAAPFAP)

The VAAPFAP provides financial assistance to new or existing companies that utilize the state’s agricultural commodities to create new, innovative products or to produce renewable fuels (including soy diesel, ethanol and other renewable fuels). VAAPFAP can also assist those companies engaged in organic processing, bio-mass and creation of alternative energies. Financial assistance is provided in the form of loans and forgivable loans.

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 High Quality Job Creation Program (HQJC)

The HQJC program is designed to promote the creation of quality jobs by assisting businesses locating, expanding or modernizing their facilities in Iowa. To be eligible, businesses must meet criteria relating to targeted industries, employee benefits, and building specifications, among others

The program offers a package of tax credits, exemptions and/or refunds to approved businesses. The level of assistance is based on the amount of qualifying investment and the number of new jobs that meet wage targets.

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 Iowa Central Community College Job Training Programs

Iowa Central Community College (ICCC) has been one of Humboldt County’s most active economic development partners. The purpose of the job-training programs is to lower a company’s cost of expanding employment and training employees in new jobs. The employees benefit by expanding their job skills and abilities.

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 Iowa New Jobs Training Program (260E)

The Iowa New Jobs Training Program was developed to assist businesses that are creating new jobs. If the company is expanding Iowa operations or locating a new facility in the state, the New Jobs Training Program can provide flexible funding to meet the wide variety of training and employee development needs for its new employees. The assistance available ranges from highly specialized educational programs to basic skills training for new positions. This program is administered through Iowa’s Community College Network.

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 Iowa Jobs Training Program (260F)

The Iowa Jobs Training Program invests in customized training for existing Iowa employers. Businesses with employee development or training needs should contact their local community college, Iowa Central Community College.

The Community College assists businesses with funding. The maximum award is $25,000 for each project, provided the company offers a minimum 25 percent cash match. A business site may be approved for multiple projects—with maximum funding over three years not to exceed $50,000 per site.

New Jobs Tax Credit

Businesses entering into an agreement under the state’s training program and which increase their workforce by at least 10 percent, qualify for this credit to their Iowa corporate income tax. The credit is equal to 6 percent of the state unemployment insurance taxable wage base. The tax credit can be carried forward up to 10 years.

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 Infrastructure Financial Assistance Programs

Financial assistance programs are available to finance road and community infrastructure to attract new development or support growth of existing development. The RISE program is for eligible cities and counties to promote economic development in Iowa through construction or improvement of roads and streets. Another program, the Pubic Facilities Set-Aside (PFSA) assists with the construction of public infrastructure to serve industrial properties.

Revitalize Iowa’s Sound Economy (RISE)

This program is administered by the Iowa Department of Transportation for expenditures on city, county, and state highways to help attract new development or to support growth with existing developments. Projects are evaluated on economic potential and impact. Funding may be used in conjunction with other sources of federal, state, local, and private financing for the purpose of improving area highways and specific access to roads.

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 Humboldt County Development Association Revolving Loan Fund

Humboldt County Development Association (HCDA) administers a USDA Rural Development Revolving Loan Fund of approximately $800,000. Loan funds can be used to leverage a prospective applicant’s capital in the development project, and are available for industrial and commercial business expansions for the County of Humboldt. The HCDA revolving loan fund is utilized for gap financing to help strengthen conventional financing packages.

Eligible Uses of Funds include, but are not limited to, the following:

  • Business or Industrial acquisitions
  • Business Construction and Expansions
  • Equipment and Machinery
  • Start-up Operating Costs and Working Capital

An application process is required.

Contact Humboldt County Development Association, Alissa Reinholdt, Humboldt County Economic Development Director, 29 Fifth Street South, Humboldt, IA 50548, phone 515.332.2557, or e-mail: alissa@humboldtcountyiowa.com

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 MIDAS Council of Governments Revolving Loan Fund

MIDAS Council of Government’s administers a revolving loan fund that is designed to encourage new or expanded development activities in the north central Iowa counties of Calhoun, Hamilton, Humboldt, Pocahontas, Webster, and Wright. The primary purpose of this program is the creation and retention of quality jobs. This program meets this goal by bridging the financial gap that exists between the amount of private lending institutions are willing to commit for project development and the total amount needed to bring opportunities to completion.

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 Humboldt County REC and Corn Belt Power Cooperative Revolving Loan Fund

Midland Power Cooperative, in partnership with Corn Belt Power Cooperative, strives to create business opportunities for its customer-owners and the Humboldt area. The cooperatives offer a full spectrum of development services and resources.

The Programs:

  • Intermediary Relending Program (IRP) & Rural Economic Development Loan and Grant Program (REDLG) – improve the quality of life in rural areas by contributing to long-term improvement in the local economy.
  • Joint Venture Loan Financing – provides low-interest loans for business creation, location and expansion.
  • Industrial Site Development – assists with financing, infrastructure, and development of industrial parks and sites.
  • Speculative Building Development – assists with the financing, construction, and marketing of speculative industrial buildings to meet the needs of new and expanding businesses.
  • Housing Development – works with member systems and communities to promote affordable housing, start new housing developments and build speculative housing
  • Economic Development Rates – promote business growth and reward company’s ability reduce peak load

The Services

In addition, our staff can assist with:

  • Power Needs Analysis
  • Competitive Rate Design
  • Financial Packaging
  • Marketing Assistance

For more information, contact Jim Vermeer, Vice President of Business Development at Corn Belt Power Cooperative, 515.332.2571 ext. 7727, or visit their website at:  www.cbpower.com.

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 Humboldt County Nondiscrimination Statement

Full Nondiscrimination Statement

In accordance with Federal civil rights law and U.S. Department of Agriculture (USDA) civil rights regulations and policies, the USDA, its Agencies, offices, and employees, and institutions participating in or administering USDA programs are prohibited from discriminating based on race, color, national origin, religion, sex, gender identity (including gender expression), sexual orientation, disability, age, marital status, family/parental status, income derived from a public assistance program, political beliefs, or reprisal or retaliation for prior civil rights activity, in any program or activity conducted or funded by USDA (not all bases apply to all programs). Remedies and complaint filing deadlines vary by program or incident.

 Persons with disabilities who require alternative means of communication for program information (e.g., Braille, large print, audiotape, American Sign Language, etc.) should contact the responsible Agency or USDA’s TARGET Center at (202)720-2600 (voice and TTY) or contact USDA through the Federal Relay Service at (800)877-8339. Additionally, program information may be made available in languages other than English.

 To file a program discrimination complaint, complete the USDA Program Discrimination Complaint Form, AD-3027, found online at http://www.ascr.usda.gov/complaint_filing_cust.html and at any USDA office or write a letter addressed to USDA and provide in the letter all of the information requested in the form. To request a copy of the complaint form, call (866) 632-9992. Submit your completed form or letter to USDA by:

 (1) mail: U.S. Department of Agriculture,  Office of the Assistant Secretary for Civil Rights , 1400 Independence Avenue, SW,  Washington, D.C. 20250-9410;

(2) fax: (202) 690-7442; or

(3) email: program.intake@usda.gov.

 USDA is an equal opportunity provider, employer, and lender. 

Spanish Translation

De acuerdo con la ley federal de derechos civiles y las reglamentaciones y políticas de derechos civiles del Departamento de Agricultura de Estados Unidos (U.S. Department of Agriculture, USDA), se prohíbe al USDA, sus agencias, oficinas y empleados, e instituciones que participan o administran los programas del USDA, discriminar por motivos de raza, color, origen nacional, religión, género, identidad de género (incluidas las expresiones de género), orientación sexual, discapacidad, edad, estado civil, estado familiar/parental, ingresos derivados de un programa de asistencia pública, creencias políticas, o reprimendas o represalias por actividades previas sobre derechos civiles, en cualquier programa o actividad llevados a cabo o financiados por el USDA (no todas las bases se aplican a todos los programas). Las fechas límite para la presentación de remedios y denuncias varían según el programa o el incidente.

Las personas con discapacidades que requieran medios alternativos de comunicación para obtener información sobre el programa (por ej., Braille, letra grande, cinta de audio, lenguaje americano de señas, etc.) deberán comunicarse con la Agencia responsable o con el Centro TARGET del USDA al (202) 720-2600 (voz y TTY) o comunicarse con el USDA a través del Servicio Federal de Transmisiones al (800) 877-8339. Asimismo, se puede disponer de información del programa en otros idiomas además de inglés.

Para presentar una denuncia por discriminación en el programa, complete el Formulario de denuncias por discriminación en el programa del USDA, AD-3027, que se encuentra en línea en http://www.ascr.usda.gov/complaint_filing_cust.html, o en cualquier oficina del USDA, o escriba una carta dirigida al USDA e incluya en la carta toda la información solicitada en el formulario. Para solicitar una copia del formulario de denuncias, llame al (866) 632-9992. Envíe su formulario completado o su carta al USDA por los siguientes medios:

(1) correo: U.S. Department of Agriculture, Office of the Assistant Secretary for Civil Rights, 1400 Independence Avenue, SW, Washington, D.C. 20250-9410;

(2) fax: (202) 690-7442; o

(3) correo electronico: proqram.intakeusda.qov.

 El Departamento de Agricultura de Estados Unidos (USDA) es un proveedor, empleador y prestador que ofrece igualdad de oportunidades.

 

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