Relief Resources for Iowa Businesses Affected by COVID-19

Updated as of March 25, 2020 at 9:15 a.m.

Governor Reynolds announced on Monday, March 23rd new relief resources to help Iowa businesses affected by COVID-19.

  1. Employers can defer their 1st quarter unemployment tax payment from April 30th to July 31st with no interest or penalties. The 1st quarter unemployment tax payment would then be paid with the 2nd quarter unemployment tax payment. To qualify, employers must employ 50 or fewer employees and be in good standing with no delinquencies in quarterly payments. To request tax deferment, employers must contact the Unemployment Insurance Tax division at 1-888-848-7442 or send an email to Q1tax@iwd.iowa.gov by Friday, April 24th at 4:30 pm. Iowa Workforce Development is anticipating long wait times via phone and encourages employers to request tax deferment via email. If you request an extension of payment, you will be required to submit your Quarterly Employers Contribution and Payroll report electronically by Friday, April 24th at 4:30 pm.
  2. The Iowa Small Business Relief Program will provide financial assistance to small businesses that have been economically impacted by COVID-19, by offering grants ranging from $5,000 - $25,000 and/or deferral of sales and use or withholding taxes due with waiver of penalty and interest. The grant funds are to be used to maintain operations or reopen a business affected by COVID-19 and may not be used to pay any debts incurred prior to March 17, 2020. To apply for the grant and/or deferral of tax payments, you must submit an application electronically at https://www.iowaeconomicdevelopment.com/our-agency-detail-resources/6710 by Tuesday, March 31 at 12:00 pm (noon). Applications will be reviewed for eligibility and grant amounts will be determined by the COVID-19 impact, such as by loss in sales revenue and employees. The award decisions and disbursement of grant funds will be made in early April. Submission of an application, does not guarantee financial assistance or tax deferral. See below for the eligibility requirements to qualify for financial assistance.


Iowa Small Business Grants

  1. Must be experiencing business disruption due to COVID-19
  2. Must have employed between 2 and 25 people prior to March 17, 2020
  3. Must have a physical location in Iowa


Iowa Business Tax Deferral

  1. Must be experiencing business disruption due to COVID-19
  2. Must have a physical location in Iowa


The application asks for the following information: general business information, ownership information, impact COVID-19 pandemic has had on business, Income Statement, comparison of March 2019 and 2020 revenues, Balance Sheet, payroll prior to March 17, 2020 and other miscellaneous questions.