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Can I offer a referral program for my customers in Iowa? What are the requirements?

Referral Programs in Iowa

Based on the provided context documents, there are no specific regulations or requirements regarding referral programs for businesses in Iowa [4.1]. Therefore, businesses in Iowa are not required to obtain any special permits or licenses to offer referral programs to their customers.

However, businesses operating in Iowa are subject to standard program requirements, including compliance with environmental and worker safety laws, sustained operations, and legally authorized employment [4.1]. Additionally, small businesses must be certified as a targeted small business by the Iowa Economic Development Authority before participating in the Iowa targeted small business procurement program [1.1][1.3].

Business Accelerator Entities

Business accelerator entities in Iowa must meet certain requirements and qualifications [2.1]. These include being a not-for-profit organization affiliated with an area chamber of commerce, a community or county organization, or an economic development region. The geographic area served by a business accelerator must include more than one county. The business accelerator must possess the ability to provide service to a specific type of business as well as to meet the broad-based needs of other types of start-up entrepreneurs. The business accelerator must possess the ability to market business accelerator services in the region and the state. The business accelerator must possess the ability to communicate with and cooperate with other business accelerators and similar service providers in the state. The business accelerator must possess the ability to engage various funding sources for start-up entrepreneurs. The business accelerator must possess the ability to communicate with and cooperate with various entities for purposes of locating suitable facilities for clients of the business accelerator. The business accelerator must possess the willingness to accept referrals from the economic development authority. The business accelerator must refer 20 businesses per year to the Venture Network of Iowa.

Eligibility Requirements

In order to be eligible for assistance, the business, or proposed business, must be located in the state of Iowa [1.2]. If the business is a sole proprietorship or a partnership, all applicable business owners must apply. If the business is a limited liability company, a limited liability partnership, or a corporation, the application must be submitted and signed by an individual who has been authorized by the business to do so. In order to be eligible for assistance, the business owner or owners (or appropriate individual(s) in a limited liability company, limited liability partnership or corporation) must consult with and obtain a letter of endorsement from an IDED-approved business accelerator or from another recognized entrepreneurial development organization such as a John Pappajohn Entrepreneurial Center (JPEC), a Small Business Development Center (SBDC), or an equivalent organization recognized by IDED.

Eligible Uses of Funds

Funds appropriated to the authority for the empower rural Iowa program shall be used to address the challenges and opportunities of rural communities [5.1]. Uses of funds shall be approved by the director. These include the following:

  • The rural housing needs assessment grant program administered pursuant to 261—Chapter 220
  • The rural innovation grant program administered pursuant to 261—Chapter 221
  • Support for entrepreneurship and cooperative business models for businesses in rural communities
  • Leadership development training for representatives of rural communities
  • Education and training opportunities relating to succession planning for businesses in rural communities
  • Promotion of e-commerce opportunities for businesses in rural communities
  • Implementation of additional recommendations published by the investing in rural Iowa task force, the growing rural Iowa task force, and the connecting rural Iowa task force created by the empower rural Iowa initiative and administered by the authority.

Review Criteria

When applications are reviewed, the following shall apply [6.1]:

  • A project shall not be eligible for financial assistance under another state program. If a project is eligible for assistance under another state program, then the project shall not be eligible for funding under this program.
  • The project must represent a unique economic development opportunity or involve a unique threat to economic development in the state of Iowa.
  • An applicant must demonstrate that any financial assistance received under this program leverages additional public or private funds.
  • An applicant must demonstrate that the project will lead to a positive economic impact for the state of Iowa.
  • An applicant must demonstrate financial need for assistance. Financial need may be demonstrated with financial statements, narrative statements outlining the financial need, and any other documentation that demonstrates financial need or that is requested by the department.

Therefore, while there are no specific regulations regarding referral programs, businesses in Iowa must comply with standard program requirements and be certified as a targeted small business to participate in certain programs. It is recommended that businesses consult with legal counsel to ensure compliance with all applicable laws and regulations.

Source(s):
Jurisdiction

Iowa