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Board Approves Awards to Support the Creation of Jobs in Insurance and Food Processing
[September 20, 2014]

Board Approves Awards to Support the Creation of Jobs in Insurance and Food Processing


(Targeted News Service Via Acquire Media NewsEdge) DES MOINES, Iowa, Sept. 19 -- The Iowa Economic Development Authority issued the following news release: The Iowa Economic Development Authority (IEDA) board today awarded direct financial assistance and tax benefits to two companies for job creation and expansion projects. Today's awards will assist in the creation of 94 jobs and will result in $47 million in new capital investment for the state. The board also approved innovation funding to six start-ups.



Additionally, the board approved tax credit awards under the Innovation Fund Investment Tax Credit program for 54 applications. The program was created to encourage seed capital investment in innovative Iowa businesses. Through the certified Innovation Fund, Next Level Ventures Fund I, LLLP, 28 investors collectively invested $5.5 million in Iowa companies. Through this program, applicants will receive tax credits equaling 25 percent of the investor's equity investment in the certified Innovation Fund. In FY15, the total amount of tax credits available for investment in Innovation Funds is $8 million.

Des Moines insurer to continue growth in central Iowa Merchants Bonding Company (MBC) is an Iowa domiciled insurance carrier that specializes in contract, commercial and fidelity surety bonds. The bonds are sold through qualified agencies throughout the U.S. In addition to its headquarters in Des Moines, MBC also has offices in four other U.S. markets. The board approved tax incentives through the High Quality Jobs Program (HQJ) for a proposed project that would relocate MBC to a new corporate headquarters building in West Des Moines to accommodate the company's immediate and future growth plans. The project has a capital investment of $14.6 million and will create 11 jobs, of which one is incented at a qualifying wage of $25.52 per hour.


Food Processor to expand in Burlington Shearer's Foods, LLC, is a leading national contract manufacturing and private label supplier in the snack industry in North America, operating eight manufacturing facilities around the U.S. Because of the recent acquisition of a private label cookie and cracker business, Shearer's is proposing an expansion of its Burlington facility. The proposed $33 million project would include the addition of a new cracker line including equipment for bulk materials, mixing, baking, production, receiving and warehousing. The board awarded the company tax benefits through HQJ to create 83 new jobs, of which six are incented at a qualifying wage of $14.73 per hour. The project also received benefits via the Targeted Jobs Withholding Tax Credit (TJWTC) program.

Awards made to six start-ups The Demonstration Fund provides financial and technical assistance to encourage high-technology prototype and concept development activities that have a clear potential to lead to commercially viable products or services within a reasonable period of time.

The fund provides up to $150,000 to encourage commercialization activities by small and medium-sized Iowa companies in the advanced manufacturing, biosciences and information technology industries. The primary purpose of the fund is to help businesses with a high-growth potential reach a position where they are able to attract later-stage, private-sector funding.

The Iowa Innovation Acceleration Fund promotes the formation and growth of businesses that engage in the transfer of technology into competitive, profitable companies that create high-paying jobs. The funds are designed to support commercializing research, launching new start-ups and accelerating private investment and industrial expansion efforts that result in significant capital investment.

The Proof of Commercial Relevance Fund provides financial assistance to innovative businesses that are pursuing proof of commercial relevance and marketability of a technology. The funds are designed to assist businesses with new technologies that have completed the proof of concept stage and are ready to be subjected to the rigors of the proof of commercial relevance stage that includes defining the market for the product and perfecting the product to meet market needs.

Award recommendations for these funds are made by the Technology Commercialization Committee (TCC) to the IEDA Board for approval.

Blue-9, LLC, is a Maquoketa-based company focused on the manufacture and sale of a canine training platform called, "The KlimbTM". The company believes the platform is an essential piece of equipment for dog training at all levels that helps the trainer gain greater focus and faster results. Focus trainer group data shows that the company possesses a first-to-market commercial position. The company was awarded a $100,000 loan through the Demonstration Fund to execute its marketing and sales strategies beginning with the professional trainer market segment that currently employs the platform training method.

Iowa Adaptive Technologies (IAT), based in Coralville, has developed a product, the IAT SmartSwitch, in order to address the needs of the large number of patients with limited physical and communication abilities. The IAT SmartSwitch uses patented technology to detect the smallest intentional gestures a patient can produce (i.e. finger tap, eye movement, tongue click, etc.) and provides multiple output controls that are compatible with existing nurse call systems and speech generating devices. The IAT SmartSwitch can be easily implemented into the current market due to its simple design and compatibility with existing nurse call systems and other devices. The board awarded Iowa Adaptive Technologies a $100,000 loan through the Demonstration Fund to move forward with clinical field trials and additional marketing and sales efforts.

MudbuM, LLC, based in Des Moines, has developed the HAWG LAWGTM, a patented "ditty pole" product that allows users to catch gigantic trophy catfish. The design allows extraction and retrieval of the line back inside the pole with no knots to tie for easy set-up and recovery of all tackle. In addition, an extended line of ancillary products and apparel have and continue to be developed and added to MudbuM's line of products. The board awarded the company a $100,000 loan through the Iowa Innovation Acceleration Fund to build the company's relevance and credibility as cat fishing experts with a revolutionary alternative to traditional fishing methods.

Ankeny-based Rocket Referrals is a cloud-based software company that automates the process of increasing sales via referrals, cross sell and up sell opportunities for service companies with emphasis on insurance agencies. Rocket Referrals deploys a multipronged approach to referral marketing drawing on targeted and psychology-driven content across email, social media and direct mail. The board awarded Rocket Referrals a $100,000 loan via the Iowa Innovation Acceleration Fund to continue product development, customer acquisition and to establish additional industry partnerships.

Higher Learning Technologies (HLT) was started in Coralville in 2012. HLT started with a single software product for dental students studying for their licensure exams. The products include mobile apps for test prep and education. After having success in the dental field, the business scaled up to include nursing, finance and admissions exams. The board approved a $300,000 royalty agreement through the Iowa Innovation Acceleration Fund so the company can expand its reach into test prep for ACT, SAT, GED, HiSET, GRE, GMAT and other large exams.

Coralville-based VIDA Diagnostics, Inc. is the first-in-class diagnostics and therapeutic imaging informatics company for the early detection, diagnosis and treatment planning of pulmonary disease. In the emerging era of cost containment and value-based imaging services, VIDA extends the current value of medical imaging to the objective, repeatable, measurable standard demanded by pulmonary clinicians for critical decision support. The board approved a $500,000 loan through the Iowa Innovation Acceleration Fund so VIDA can continue to grow commercialization channels and further refine and develop its product.

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