The Iowa Economic Development Authority awards funding to startups in the form of low-interest loans through its Innovation Continuum, which includes five funds that are designed to offer companies non-dilutive funding at every stage of business growth. The funds are: Proof of Commercial Relevance (POCR), Demonstration Fund and the Innovation Acceleration Fund, which offers Launch, Propel and Innovation Expansion awards.

These financing options are geared toward companies operating in the fields of advanced manufacturing, biosciences or information technology. Each fund in the continuum also requires the company to supply matching funds, which could come from family and friends funding, outside investors or federal funding programs like the Small Business Innovation Research program.

Starting in 2023, IEDA has provided additional funding through the U.S. Treasury’s State Small Business Credit Initiative (SSBCI). Iowa received $96 million from SSBCI, and $22 million was allocated to increasing the amount of funding available through each of IEDA’s innovation funds. For example, before the SSBCI funding, companies could receive a POCR loan of up to $25,000; now POCR loans of up to $50,000 are available.

After the application process, which includes an interview with a panel of experts in the industry the company operates in, companies present to the IEDA Technology Commercialization Committee (TCC). The TCC then makes recommendations to the IEDA board for final approval of awards.

The SSBCI Review Committee also reviews and scores applications and makes recommendations to the executive director of IEDA for final approval of awards that are funded through the SSBCI allocation. Both committees meet every two months.

Below are the startups and organizations that received funding through IEDA programs in the second quarter of 2025.

Iowa Innovation Continuum loans

Koos Medical Innovations LLC – Ankeny: $50,000 Proof of Commercial Relevance loan. Koos Medical Innovations has a patented disposable isolation gown that ensures a custom fit for every wearer to reduce the risk of health care-associated infections.

Terraform Tillage LLC – Eldora: $50,000 Proof of Commercial Relevance loan. The agricultural technology company is developing innovative solutions for soil management.

BioAxis LLC – Indianola: $50,000 Proof of Commercial Relevance loan. BioAxis focuses on biosecurity for the livestock and meat processing industries. Its technologies work to prevent pathogen threats, including antimicrobial-resistant bacteria used in production facilities.

LSF Medical Solutions, LLC – Iowa City:  $50,000 Proof of Commercial Relevance loan. The startup developed a solution that allows lung disease patients to monitor their lung function at home remotely with their physicians, reducing the risk of hospitalization.

State Small Business Credit Initiative

No startups were awarded State Small Business Credit Initiative funding in the second quarter.

Manufacturing 4.0 Technology Investment programFor fiscal year 2025, 33 Iowa manufacturers received a total of $2,016,756 in funding from the Manufacturing 4.0 Technology Investment program, which provides grants to help small- and mid-size manufacturers invest in the adoption and integration of smart technologies. The total project cost of the grants awarded was nearly $5.5 million. To see a full list of awards, click here.