Iowa Targeted Small Business Program: Status and What to Do

What it is

The Iowa Economic Development Authority (IEDA) certifies Targeted Small Businesses (TSBs) under Iowa Code chapter 73, subchapter III. State agencies must set yearly TSB purchasing goals and report TSB spending each quarter. Community colleges, area education agencies and school districts must set a goal of at least 10% of expected purchases. TSB status also brings early bid notice, small non-competitive buys and bond waivers.

Who qualifies

• At least 51% owned, operated and actively managed by one or more women, minority persons, service-disabled veterans or persons with a disability. At least 51% of board seats must also be held by these owners.
• The qualifying owners must make day-to-day and major decisions. Their capital contribution must be real and substantial.
• Located in Iowa and operated for profit. Out-of-state firms are not eligible.
• Annual gross income under $4 million, averaged over the three prior fiscal years.
• Not a subsidiary of another business.
• Disability must be shown by a licensed medical provider or a vocational rehabilitation finding.
• The official pages do not mention reciprocity with other states' certifications.

What it means for your bids

• Early notice: TSBs get access to a bid site that shows state solicitations 48 hours before public posting.
• Non-competitive bids: access to non-competitive opportunities for state purchases under $25,000.
• Bond waivers: up to $50,000 on state projects if you cannot get a bond because of limited experience, net worth or capital.
• Agencies must send solicitations to suitable firms in the IEDA TSB directory.
• Separate from TSB, Iowa gives a reciprocal resident bidder preference on public construction. An Iowa resident bidder gets the same edge a nonresident bidder's home state would give its own firms. A resident bidder has had an Iowa place of business for at least three years.

How to get certified

1. Read the program page and application: https://opportunityiowa.gov/business/small-business-entrepreneurs/small-business-resources/targeted-small-business-program
2. Apply through the IEDA TSB portal linked on that page. IEDA may ask for documents proving ownership, control and income, and may visit your site.
3. Fee: the rules and program page do not mention a fee.
4. Processing time: the official pages do not say.
5. Keep it current: report changes in ownership, control or management within 30 days, and submit proof of continued eligibility at least every two years.
6. Register separately as a state vendor in IMPACS through DAS: https://das.iowa.gov/procurement

Watch out for

• The TSB laws (Iowa Code 15.102 and chapter 73) show no 2025 amendments in the Iowa Code 2026, and the legislature's 2026 session listing shows no changes to them.
• Iowa's DAS TSB page was updated July 20, 2026 and still describes the program for women, minority persons, service-disabled veterans and persons with a disability.
• Cities, counties and school districts may run their own programs.
• Federal DBE (Iowa DOT highway and transit work) is a separate program.
• Help: IEDA TSB program, 515-348-6193.

Programs in other states →

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Sources

• opportunityiowa.gov/business/small-business-entrepreneurs/small-business-resources/target
• das.iowa.gov/vendors/targeted-small-business-program
• das.iowa.gov/procurement
• www.legis.iowa.gov/docs/code/15.102.pdf
• www.legis.iowa.gov/docs/code/73.pdf
• www.legis.iowa.gov/docs/iac/chapter/261.52.pdf
• www.legis.iowa.gov/docs/code/8A.311B.pdf
• www.legis.iowa.gov/law/statutory/acts/amended

FindMyBids isn't affiliated with any certifying agency, and this isn't legal advice. Status can change quickly with court orders and new laws, so confirm with the program office before you rely on it.