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CHAPTER 102ENTREPRENEUR INVESTMENT AWARDS PROGRAM261—102.1(15E) Authority. The authority for adopting rules establishing the entrepreneur investment awards program under this chapter is provided in Iowa Code sections 15.106A and 15E.362.Related ARC(s): 0611C, 2501C261—102.2(15E) Purpose. The purpose of the entrepreneur investment awards program is to provide financial assistance to service providers that provide technical and financial assistance to entrepreneurs and start-up companies seeking to create, locate, or expand a business in the state.Related ARC(s): 0611C, 2501C261—102.3(15E) Definitions. As used in this chapter, unless the context otherwise requires:
"Applicant" means a person applying to the authority for financial assistance under the program.
"Authority" means the economic development authority created in Iowa Code section 15.105.
"Board" means the members of the economic development authority appointed by the governor and in whom the powers of the authority are vested pursuant to Iowa Code section 15.105.
"Business development services" includes but is not limited to corporate development services, business model development services, business planning services, marketing services, financial strategies and management services, mentoring and management coaching, and networking services.
"Committee" means a committee of application reviewers appointed by the director.
"Deliverables" means the performance of duties or other obligations required of an applicant under a contract entered into with the authority in consideration for the receipt of financial assistance under the program. At a minimum, “deliverables” includes the continued maintenance of all initial eligibility requirements for the duration of a contract entered into under the program and may include such other terms and conditions as the authority deems necessary to effectuate the legislative intent of the program or to protect the interest of taxpayers.
"Director" means the director of the authority.
"Eligible entrepreneurial assistance provider" "service provider" means a person meeting the requirements of rule 261—102.6(15E).
"Financial assistance" means the same as defined in Iowa Code section 15.327.
"Fund" means the entrepreneur investment awards program fund created pursuant to Iowa Code section 15E.363.
"Iowa-based business" means a service provider whose principal place of operations is in Iowa and that is actively providing business development services in the state.
"Operating costs" means the expenses associated with administering a service provider’s activities on a day-to-day basis. “Operating costs” includes both fixed costs and variable costs. “Operating costs” does not include expenses associated with non-operating activities such as interest expenses, repayment of principal, or moneys invested by the service provider in clients’ businesses or in other ventures.
"Program" means the entrepreneur investment awards program established pursuant to Iowa Code section 15E.362.
Related ARC(s): 0611C, 2501C, 5513C261—102.4(15E) Program description, application procedures, and delegation of functions. 102.4(1) Program description. The program is designed to provide financial assistance to service providers meeting the eligibility requirements described in rule 261—102.6(15E). All awards of financial assistance must ultimately be approved by the board, and a contract must be entered into before funds will be disbursed. All contracts will specify the deliverables required in consideration for the provision of financial assistance. 102.4(2) Application and award procedures. Eligible service providers may submit applications to the authority. The applications will receive an initial review to confirm program eligibility before being sent to the committee for a recommendation on funding. The committee will provide its recommendation to the board for a final determination on funding. The board may approve, deny, or defer each application for financial assistance under the program. The board will consider applications for financial assistance during the annual filing window described in subrule 102.4(4). The amount of financial assistance awarded to a service provider is within the discretion of the authority as determined by the board. If the board approves an award of financial assistance for a service provider, the authority will prepare a required contract specifying the terms and conditions under which financial assistance is provided to the service provider. 102.4(3) Review procedure. a. The committee shall verify that all objective criteria for eligibility are met as described in subrule 102.6(1) and shall provide an opinion as to whether and to what extent the applicant meets the subjective criteria described in subrule 102.6(2). The analysis of eligibility shall be compiled in report form and submitted to the board for its use in making a final determination. b. The committee shall recommend to the authority the terms and conditions to be included in the contract in consideration for receipt of the grant funds. 102.4(4) Annual filing window. In order to facilitate the competitive application and scoring process described in rule 261—102.6(15E), applications will be accepted only during the established application period, or periods, as identified by the authority on its website during each fiscal year in which funding is available. The authority may adjust the filing window dates under extenuating circumstances and will notify affected parties of such circumstances. 102.4(5) Miscellaneous. The authority may contract with outside service providers for assistance with the program. The authority may also make client referrals to eligible service providers regardless of the amount of financial assistance provided.Related ARC(s): 0611C, 2501C, 5513C261—102.5(15E) Program funding. 102.5(1) Aggregate fiscal year limitation. The authority will not award more than $1 million in financial assistance under the program in any one fiscal year. 102.5(2) Individual applicant limitation. The authority will negotiate the amount of financial assistance to be provided to a service provider. However, the authority will not award more than $200,000 to any one service provider in any one fiscal year. 102.5(3) Program funding source and allocation. Moneys for financial assistance under the program will be awarded from the moneys in the entrepreneur investment awards program fund created pursuant to Iowa Code section 15E.363. Moneys are deposited in this fund by the authority pursuant to Iowa Code section 15.335B. The amount deposited each year depends on the amount allocated for such purposes under Iowa Code section 15.335B. 102.5(4) Use of funds. An applicant receiving financial assistance under the program shall only use the funds for the purpose of defraying operating costs actually incurred by the service provider in providing business development services to emerging and early-stage innovation companies in this state. Financial assistance provided under the program shall not be distributed to owners or investors of the company to which business development services are provided and shall not be distributed to other persons assisting in the provision of business development services.Related ARC(s): 0611C, 2501C261—102.6(15E) Eligibility requirements and competitive scoring process. 102.6(1) Eligibility. In order to be eligible for financial assistance under the program, an applicant must meet the requirements of this rule. A service provider applying to the program must meet all of the following criteria for eligibility: a. The service provider must have its principal place of operations located in this state. b. The service provider must offer a comprehensive set of business development services to emerging and early-stage innovation companies to assist in the creation, location, growth, and long-term success of the company in this state. c. The business development services may be performed at the physical location of the service provider or the company. d. The business development services may be provided in consideration of equity participation in the company, a fee for services, a membership agreement with the company, or any combination thereof. 102.6(2) Competitive scoring criteria. The authority will award financial assistance on a competitive basis. In making awards of financial assistance, the authority will consider the following criteria: a. The business experience of the professional staff employed or retained by the service provider. 25 points. b. The business plan review capacity of the professional staff of the service provider. 15 points. c. The expertise in all aspects of business disciplines of the professional staff of the service provider. 15 points. d. The access of the service provider to external service providers, including legal, accounting, marketing, and financial services. 15 points. e. The service model and likelihood of success of the service provider and its similarity to other successful service providers in the country. 15 points. f. The financial need of the service provider. 15 points.Related ARC(s): 0611C, 2501C261—102.7(15E) Contract and report information required. 102.7(1) Contract required. An applicant awarded financial assistance under the program shall enter into a contract with the authority for the receipt of such funds. The authority will include certain deliverables in the contract as recommended by the committee. The authority will track and monitor all contract provisions including an analysis of whether the service provider’s deliverables meet all requirements of the contract and including an evaluation of the value added by the service provider to the businesses of entrepreneurs. The authority will make the final determination as to compliance with the terms of the contract and will make the final determination as to whether and when to disburse funds to the applicant. 102.7(2) Reporting information required. Under Iowa Code section 15E.362, the authority is required to report on the success of the program to the legislature. An applicant may be required to submit all information necessary for the authority to produce such a report. The authority may include terms in the required contract effectuating this requirement.Related ARC(s): 0611C, 2501C, 5513CThese rules are intended to implement Iowa Code sections 15E.362 and 15E.363.Related ARC(s): 0611C, 2501C, 5513C