116 3rd St SE
Cedar Rapids, Iowa 52401
The New Bohemian Innovation Collaborative received $110,000 in funding from the Iowa Economic Development Authority Friday to help women-, minority- and low-income-owned businesses.
NewBoCo is partnering with Kiva, a global not-for-profit lender, to create a microlending hub for minority-owned businesses that will offer loans to Iowans without any interest or fees.
“Obviously we’ve been working with entrepreneurs since the beginning with our Iowa Startup Accelerator,” said Aaron Horn, the executive director of NewBoCo.
“Historically we’ve worked with tech start-ups, but we’ve certainly seen the need for access to capital for underrepresented entrepreneurs as well.”
Kiva has a 96 percent loan repayment rate, according to its website.
Horn said the organization will hire a capital access manager, who will work with entrepreneurs on their business plans before connecting them with the Kiva system.
Loans will vary in size between $1,000 and $15,000, Horn said.
NewBoCo also hopes to partner with other organizations that help underrepresented entrepreneurs. Horn already has spoken with to Empower by GoDaddy in Cedar Rapids and the Glenwood, Md.-based Global Good Fund.
“We’re looking to partner with some of those organizations to be able to not just give access to the capital, but also to be able to give them membership and support,” Horn said.
Horn believes it will take “another month or two” before NewBoCo will have the hub operational. He said the organization is able to answer questions from prospective entrepreneurs in the meantime, though.
Sadler Power Train receives tax relief, Vine Line contract canceled
Sadler Power Train, which distributes and remanufactures truck parts, received a $31,500 sales, service and use tax refund from IEDA.
The Cedar Rapids company is expanding its facility by 10,000 square feet to allow for more remanufacturing and inventory space, according to IEDA documents.
The state support for the $1.1 million project is contingent on the city of Cedar Rapids approving a $111,445 Tax Increment Financing rebate.
IEDA’s board also terminated its contract with Vine Line Group, formerly Walsma and Lyons, that offered the company a $64,500 in tax credits for a $300,000 Cedar Rapids project.
The initial agreement called for Vine Line to create 22 jobs, including two above the $24.70 hourly wage necessary to qualify for funding. Vine Line requested the termination because it nixed the project.
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