Section 261.60.7. Review criteria.

       60.7(1) Applications will first be reviewed for completeness. If additional information is required, the program staff shall send the applicant notice to submit the additional needed information. The applicant shall submit the requested information within a reasonable time period in order to ensure further action on the request.

       60.7(2) The applications will then be reviewed for content of the business plan, and an evaluation of the business’s potential viability and potential for growth. The department may consult with the JPEC centers, or other knowledgeable agencies or individuals, as a part of the review process.

       60.7(3) The following items will be reviewed and evaluated:

        a.           Type of business.

       (1)             Highest priority will be given to businesses in sectors of the Iowa economy with the greatest start-up and growth potential for Iowa, including but not limited to:

        1.            Biotechnology (including drugs and pharmaceuticals and value-added agricultural products);

        2.            Recyclable materials;

        3.            Software development and computer-related products;

        4.            Advanced materials;

        5.            Advanced manufacturing; and

        6.            Medical and surgical instruments.

       (2)             Assistance may be provided to industries other than those listed in “1” through “6” above; however, the applicant will have to provide a strong rationale regarding how that industry diversifies, strengthens or otherwise enhances Iowa’s economy. Eligibility may be established by an industry other than those listed if that industry can provide rationale regarding the industry’s benefit to Iowa’s economic base. Rationale that is provided will be reviewed by department staff to determine eligibility as a targeted industry. Items that will be considered in determining an industry’s benefit to Iowa’s economic base will include:

        1.            The majority of the products or services produced by the industry are exported out of Iowa;

        2.            The inputs for the products produced in the industry are raw materials available in Iowa or are provided by Iowa suppliers;

        3.            The goods or services produced by this industry diversify Iowa’s economy;

        4.            The goods or services provided by the industry resulted in, or will result in, a decrease in the importation of foreign-made goods into the United States;

        5.            The industry shows potential for future growth;

        6.            The functions of the industry do not produce harmful effects for Iowa’s natural environment; and

        7.            Whether the average wages of the majority of the occupations in the industry are above the statewide average wage.

Businesses engaged in retail sales, personal services, consulting, franchises, the provision of health care or other professional services, and distributors of products or services will not be considered targeted industries and are not eligible for this program.

        b.           Management team and management expertise. Factors considered here would be whether the applicant(s) has a background (including education, training, work experience, and other factors) which will be helpful and useful in the business in question. Also considered would be the degree to which the applicant’s background is fully documented.

        c.           Business capitalization. Factors considered here would be the original sources of financing for the business. Although all projects must have at least 50 percent of their financing from sources other than the EVA program, preference would be given to those applications where the other sources of financing were even higher than 50 percent.

        d.           Strength of business plan. Factors considered here would be the quality of the business plan and how well it addresses all elements of the business, such as:

        1.            A description of the company and the overall industry;

        2.            The product and production plan;

        3.            The market, competition, and the marketing strategy;

        4.            The management team and business operations;

        5.            Patent issues (if applicable), critical risks and problems; and

        6.            Financial information and plan.

The strength of the business plan will be the most important factor in the evaluation and rating of applications. Rating factors in paragraphs “a,” “b,” and “c” above will be evaluated as either satisfactory or not satisfactory. However, the business plan will be rated on an actual numerical or comparative scale. Those applications which are satisfactory on factors in paragraphs “a,” “b,” and “c” above and which rate highest on strength of business plan will be funded first.