Iowa Economic Development Authority (IEDA), Targeted Small Business Program
Targeted Small Business (TSB). TSB program contact (515) 348-6193. IEDA is at 1963 Bell Avenue, Suite 200, Des Moines, IA 50315. The Department of Administrative Services publishes the procurement side of the program. Iowa Economic Development Authority (IEDA), Targeted Small Business Program →
Non-competitive purchases up to $25,000
Administrative Rule 11-117.5(2) exempts purchases of goods and services up to $25,000 from competitive bid requirements when made from a certified TSB.
48-hour head start on solicitations
State agencies must post all solicitations to a TSB-only site 48 hours before they reach the public site.
Bond waivers up to $50,000
IEDA lists bond waivers up to $50,000 for state projects where a TSB cannot secure a bond because of a lack of experience, net worth or capital.
Certification
TSB certification through IEDA
The Iowa Targeted Small Business Procurement Act, Iowa Code chapter 73 subchapter III, created the program. The Iowa Economic Development Authority administers it and certifies TSBs; the Department of Administrative Services handles the procurement side.
- Certification eligibility standards sit in 261 Iowa Administrative Code chapter 52.
- Service-disabled veterans are one of four targeted groups, alongside women, minority persons and persons with a disability.
- Iowa does not run a veteran-specific certification — the veteran route is through TSB.
- IEDA states that TSB certification offers no funding or financial assistance of its own.
The preference
Agency procurement goals, set in dollars
Iowa Code 73.16 requires every state agency with purchasing authority to establish, before each fiscal year, a procurement goal from certified targeted small businesses. The goal is stated as a dollar amount and must exceed the previous year’s certified purchases.
- The goal covers all goods and services, including construction, but not utility services.
- Agencies report quarterly to IEDA on certified purchases.
- Community colleges, area education agencies and school districts must set a TSB goal of at least 10 percent of anticipated procurements of goods and services, including construction, each fiscal year.
- Of the total value of anticipated procurements under that subsection, an additional goal of at least 40 percent from service-disabled veteran-owned businesses that are targeted small businesses applies, alongside parallel 40 percent goals for minority-owned and female-owned TSBs.
Source: Iowa Code s. 73.16
The real advantage: direct purchasing authority
The practical value of TSB status in Iowa is procedural rather than price-based. Certified TSBs are named as preferred providers when cost-effective, and agencies can buy from them outside the normal competitive process up to $25,000.
- Administrative Rules 11-117.6(7) and 11-117.15(3) specify certified TSBs as preferred providers when cost-effective.
- Administrative Rule 11-117.5(2) exempts purchases of goods and services up to $25,000 from competitive bid requirements when purchased from a certified TSB.
- Iowa Code 8A.311(10)(a) lets agencies buy directly from a vendor where it is more economical and the purchase will not exceed $10,000 and would contribute to meeting TSB goals.
- Administrative Rule 11-117.4(1) lets agencies buy comparable goods or services from a certified TSB even where a master agreement with another vendor exists, if an immediate need makes it cost-effective.
- Splitting transactions to stay under the $25,000 TSB limit is prohibited by Administrative Rule 11-117.15(4)(a).
- Iowa Code 73.21 provides that where the Targeted Small Business Procurement Act conflicts with other procurement laws or rules, the Act governs.
Bond issuance good-faith effort
Separately from procurement, Iowa Code 73.14 requires the state, regents institutions, counties, cities, school districts and other public entities to make a good-faith effort to use service-disabled veteran-owned businesses when issuing bonds — for attorneys, accountants, financial advisors, banks, underwriters, insurers and related work.
- For that section a service-disabled veteran-owned business is one 51 percent or more owned, operated and actively managed by one or more service-disabled veterans as defined in 15 U.S.C. 632.
- This is a separate obligation from the TSB procurement goals and does not require TSB certification.
Source: Iowa Code s. 73.14
Eligibility
Four requirements, and a $4 million ceiling
To be eligible for TSB certification the business must be located in Iowa, operate for a profit, have gross income under $4 million averaged over the three preceding fiscal years, and be majority owned, operated and actively managed by a member of a targeted group.
- Majority owned means 51 percent or more.
- Gross income means total sales less the cost of goods sold, plus income from investments and from incidentals or outside operations.
- A service-connected disabled veteran must have a service-connected disability determined by the VA or the Department of Defense as defined in 38 U.S.C. 101(16). No minimum rating percentage is specified.
- Veterans without a service-connected disability are not eligible — the targeted group is service-disabled veterans only.
How to apply
Apply online through the IEDA portal
Applications are submitted through IEDA’s online TSB application. The same portal is used afterwards to manage the certified business profile. IEDA also publishes the application as a PDF with full instructions.
- IEDA notifies the applicant once a certification determination is made.
- Certification questions go to the TSB program manager at (515) 348-6193.
- Certified TSBs receive a link and password for the 48-hour bid notification site once certified.
Finding opportunities
Public searchable TSB directory
IEDA maintains a public, searchable directory of certified Targeted Small Businesses, searchable by business type, name, service category, service description, city, county and zip code. DAS tells state buyers to use it to find TSBs for their goals.
- Certified TSBs also get the TSB badge and window cling for marketing use.
- The TSB 48-hour bid site is synchronized from the State of Iowa Bid Opportunities database.
- Access to the 48-hour site is restricted to certified TSBs and to state agencies posting opportunities.
Source: IEDA — Certified TSB Directory
What gets reported wrongly about Iowa
- Iowa has no veteran bid preference and no veteran-specific certification. The veteran route is TSB certification, shared with women, minority and disability-owned businesses.
- Only service-disabled veterans qualify. A veteran with no service-connected disability is not in the targeted group, unlike the broader veteran programs in Indiana or Georgia.
- The competitive-bidding exemption figure is inconsistent across Iowa’s own materials. The current DAS agency guidance cites $25,000 under Administrative Rule 11-117.5(2), while the downloadable TSB application PDF still says $10,000. Treat $25,000 as the current rule and the $10,000 figure as the older Iowa Code 8A.311(10)(a) direct-purchase authority.
- The 40 percent service-disabled veteran sub-goal in Iowa Code 73.16(2)(d) is a share of the TSB procurement goal, not 40 percent of state spending.
- The 10 percent TSB goal applies to community colleges, area education agencies and school districts. State agency goals are set in dollar amounts instead, and must simply exceed the prior year.
- The $4 million limit is on gross income averaged over three fiscal years, not on revenue in a single year.
Every figure on this page links to the source it came from. Verified October 24, 2026. Procurement rules change — check the source before you rely on a number.
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