Press Release

Commerce Secretary Gutierrez Announces Immediate $3 Million in Initial Support to Help Iowa Plan Economic Recovery

CEDAR RAPIDS—Twenty-four hours after President Bush signed a multi-billion dollar disaster supplemental spending bill that provides $100 million in targeted economic planning funding in the Midwest region, U.S. Commerce Secretary Carlos M. Gutierrez traveled today to Iowa and announced the Commerce Department will immediately provide an initial $3 million in federal funds to quickly help Iowa develop a state-wide economic recovery strategy. The Department’s Economic Development Administration (EDA) specializes as an economic development resource to assist distressed communities throughout the United States.

“There is no doubt that Iowa faces challenges in the days ahead – this has been an immense natural disaster. But from disaster comes the opportunity to rebuild – and to rebuild even better than before. The President and the whole Administration are committed to helping Iowa and the entire Midwest region rebuild,” said Gutierrez.

“EDA staff is in the region assessing damage and coordinating with economic development stakeholders to ensure the most rapid response possible. We’ve moved at unprecedented speed to stand with Governor Culver and the people of Iowa in their time of need. This $3 million initial investment will allow Governor Chet Culver and the state of Iowa to quickly develop an economic recovery strategy that will help target future federal recovery funding.”

“I want to thank the U.S. Dept. of Commerce for making this commitment to Iowa’s businesses and economy,” said Iowa Governor Chet Culver. “With the impact to Iowa’s business community, the effects of this year’s historic natural disasters will be felt far outside the communities that were affected. However, together with the help and cooperation of everyone on the local, state and federal levels, I am confident that Iowa’s economy will stay strong, and our state will be rebuilt – better and stronger than before.”*

Secretary Gutierrez, Acting Small Business Administration (SBA) Administrator Jovita Carranza and EDA Denver Regional Office Director Robert Olson met with Cedar Rapids business leaders and discussed plans to move forward. Joining the meetings were Governor Chet Culver, Congressman Dave Loebsack, and Cedar Rapids Mayor Kay Halloran. The delegation also received a briefing from the Federal Emergency Management Agency (FEMA) and toured a SBA facility. Following the meetings in Cedar Rapids, Gutierrez visited a Disaster Recovery Center facility in Palo, Iowa.

EDA played an active role in previous disasters such as the Midwest Floods of 1993 and 1997, Hurricane Floyd in 2000, the Florida hurricanes of 2004, and the 2005 Gulf Coast hurricanes.

EDA is the primary Department of Commerce bureau to assist with post-disaster economic recovery – although it does not have “first responder” duties or capabilities. EDA’s mission is to lead the federal economic development agenda by promoting innovation and competitiveness, preparing American regions for growth and success in the worldwide economy.

Additional information on how EDA investments are helping distressed communities create a positive and sustainable economic future can be accessed at: http://www.eda.gov.

*This release has been updated from an earlier version to include Governor Culver’s quote.