Iowa Rural Businesses Receive Over $275K in Innovation Grants

January 10, 2025 January 10, 2025

Editorial Staff

State Grants Boost Rural Iowa Businesses with Over $275,000 in Funding

In a move to invigorate small businesses across rural Iowa, Governor Kim Reynolds, in conjunction with the Iowa Economic Development Authority (IEDA), has announced the allocation of more than $275,000 in Rural Innovation Grants. This funding will benefit 20 enterprises as part of the Governor's Empower Rural Iowa Initiative.

"Entrepreneurship in rural areas builds sustainable, resilient communities," emphasized Debi Durham, who serves as the director of both the IEDA and the Iowa Finance Authority. "These grants help businesses continue to turn a profit and grow, while providing good-paying jobs and keeping wealth right at home."

The Rural Innovation Grant program is specifically crafted to support innovative solutions addressing the unique challenges faced by communities with populations under 20,000, which are not adjacent to cities boasting more than 40,000 residents.

This year's grants prioritize independently owned grocery stores, small food producers, and second-stage growth companies. The focus is on aiding grocery stores in technological upgrades, assisting food producers to penetrate new markets, and helping growth companies expand beyond Iowa.

During the latest application period, which commenced in September, the IEDA received a total of 40 applications. The breakdown included 27 from rural grocers, nine from food producers, and four from second-stage growth enterprises. Notable grant recipients are:

Freeman Foods, North English & Wellman — These grocery locations will undergo technology enhancements to facilitate online ordering, pickup, and delivery services. Updates to point-of-sale and back-office systems aim to better cater to customers in rural Washington and Keokuk counties.

La Perla Jarocha Store, Webster City — Expanded storage capabilities will allow for a broader inventory, including fresh produce throughout the year, supported by a collaboration with Crooked Creek farm. The store also plans to enhance its online presence.

Woods Super Market, Pocahontas — As the sole grocery store in Pocahontas County, it will implement electronic shelf tags for efficient and accurate pricing, saving staff time and maintaining competitiveness.

Calyx Creek Lavender & Lodging, Oxford — The business will produce culinary lavender products on-site, leveraging its homegrown lavender to create various new products, including baking mixes and syrups.

Lansing Housing Products Inc., Lansing — Known for its patented Tough Tek Metals safety screens, the company seeks to broaden its market reach to public schools and regions susceptible to hurricanes across the U.S.