MASON CITY, Iowa, July 10 /PRNewswire-USNewswire/ -- A visionary, first-in-the-nation program invites entrepreneurs to start their business in Iowa. The North Central Iowa Alliance (NCIA) will pay for health insurance for startup business owners, removing a major roadblock for people who want to start their own business.
The Helping Entrepreneurs Launch Program at North Central Iowa (HELP @ NCI) provides money for health insurance to qualified entrepreneurs in the region for up to their first three years in business.
One of the country's leading entrepreneurial foundations, The Ewing Marion Kauffman Foundation of Kansas City, Mo., is supportive of the program's mission.
"The Kauffman Foundation understands the continued escalation of healthcare costs, coupled with the uncertainties about future trends in these costs, rank high on entrepreneurs' lists of concerns," says Robert E. Litan, vice president of research and policy at the Kauffman Foundation. "In addition, the fear of losing healthcare insurance compounds workers' anxieties about job loss itself, and most likely deters some employees from leaving their current jobs to launch new enterprises."
HELP @ NCI
The idea for the HELP @ NCI started small. It came up during conversation among several promoters of economic development in North Central Iowa. A small group began to discuss how they might help more potential entrepreneurs in the area make the leap to going into business for themselves.
One of the members found an article about how health insurance costs were preventing many potential business owners from getting started because they couldn't afford to leave their employer's healthcare plan. The group was also aware of the need through the experiences of area entrepreneurs and the John Pappajohn Entrepreneurial Center (JPEC) at North Iowa Area Community College (NIACC). The group wondered, "What if we could do something to help remove this roadblock?"
The group subsequently submitted an application to the IDED Community Development Fund, a fund that provides financial and technical assistance to Iowa communities for creative and innovative economic development projects.
NCIA received a $50,000 Community Development Fund grant from IDED and raised more than $15,000 in matching funds to qualify. With the available funding, HELP @ NCI is ready to provide an affordable and reliable health insurance option to entrepreneurs in North Central Iowa. At least 90 percent of HELP @ NCI funds directly support entrepreneurs. The program is projected to meet health insurance costs for 12 or more new business owners a year at $350 per month.
NCIA's goal is to increase entrepreneurial activity in the region by providing a safety net of health insurance for entrepreneurs and is part of its plan to make North Central Iowa the preferred destination for entrepreneurs.
HELP @ NCI
"In North Central Iowa we realize the critical importance of entrepreneurship to the economic health of this area," says Curtis Brown, NCIA director and executive director of the Mason City Economic Development Corporation. "When we encourage entrepreneurs, we help create jobs and stabilize or increase our population."
Qualification for entry into the program will be through the NIACC John Pappajohn Entrepreneurial Center and North Iowa Business Accelerator. In addition, the NIACC John Pappajohn Entrepreneurial Center's planned "Regional Incubator System" will provide a regional feeder system for this initiative. Through these entry points, JPEC staff will work with the entrepreneur to determine the viability of the business plan and, if appropriate, direct the entrepreneur client to participate in HELP @ NCI.
While funding for insurance is provided at no cost to the entrepreneur, he or she will be aware of the true cost so that it can be reflected in their business plan. Participating entrepreneurs will be required to reside in Iowa, as well as maintain the principal headquarters and operations of their company in the contributing counties in Iowa for the duration of their participation in the program.
"What NCIA has done with this project, with its out-of-the box and collaborative thinking, is exactly what we want to encourage," says Cali Beals, Iowa Department of Economic Development (IDED) community development division coordinator. "This program is on the cutting-edge and we expect it to be a model for economic development groups around the nation."
North Central Iowa Alliance, a strategic marketing partnership, is united in its effort to attract and retain industry to North Central Iowa. The alliance includes the counties of Cerro Gordo, Floyd, Franklin, Hancock, Mitchell, Winnebago and Worth who have joined together to help industry expand and relocate to the region.
North Central Iowa Alliance
CONTACT: Lori Blackburn of North Central Iowa Alliance, +1-319-268-9151
