Grassley Applauds Community Organization in Iowa City


ISED Success Makes Case for Expanded Effort


, DC ? Sen. Chuck Grassley today saluted an Iowa City-based organization for its success in helping low-income entrepreneurs and endorsed legislation to provide federal grants to encourage the mission of the Iowa organization and similar programs across the country.

The Institute for Social and Economic Development (ISED) of Iowa City was presented a Poverty Alleviation award by President Bill Clinton at a White House ceremony today for its work in giving economic and technical assistance to low-income people, including former welfare recipients running a microenterprise, or business with five or fewer employees. ISED was founded in 1989 and has demonstrated "an extraordinary commitment to self-employed people who are working very hard to grow a business and stay off public assistance," Grassley said. He credited John Else with outstanding leadership in administering the program in Iowa City.

The Presidential Award given to ISED today was based on the extent to which the program focused its efforts on low-income people and the positive impact made in increasing the financial well-being of its clients. The awards are managed by the Community Development Financial Institutions Fund at the Treasury Department.

Based on the proven success of microenterprise development by organizations such as ISED, Grassley said he also co-sponsored a bill introduced today to give federal support to the effort. TheProgram for Investments in Microentrepreneurs Act of 1998 ? known as the PRIME Act ? would allow federal grants to be awarded on a competitive basis to eligible microenterprise development organizations and programs.

Eligibility would be determined by an organization's qualifications to:

  • provide training and technical assistance to low-income and disadvantaged entrepreneurs who are interested in starting or expanding their own small businesses;
  • engage in capacity-building activities targeted to microenterprise development organizations that serve low-income and disadvantaged entrepreneurs; and,
  • support research and development activities aimed at identifying and promoting entrepreneurial training and technical assistance programs that can effectively serve low- income and disadvantaged entrepreneurs.

The PRIME Act would establish a grant program for four years with funding in the amount of $15 million for fiscal 1999, $25 million for fiscal 2000, $30 million for fiscal 2001, and $35 million for fiscal 2003. The legislation was introduced today by Sens. Pete Domenici of New Mexico and Ted Kennedy of Massachusetts. Rep. Jim Leach of Iowa is a co-sponsor of a companion bill in the U.S. House of Representatives.

ISED was one of the first microenterprise programs and Grassley has long advocated federal support for the initiatives.