Main Street Iowa Awards $1.1 Million in Challenge Grants to 11 Communities

November 5, 2026 (DES MOINES, IA) - The Iowa Economic Development Authority (IEDA) today awarded $1.1 million in Main Street Iowa Challenge Grants to 11 communities across the state: Boone, Centerville, Fairfield, Fort Dodge, Grundy Center, Lansing, Mount Vernon, Nevada, Newton, Ottumwa and West Des Moines.

The grants support the rehabilitation of underutilized downtown buildings, spurring economic growth and encouraging further investment in Iowa's historic main streets.

Among this year's recipients are:

• Boone - An 1895 commercial building will gain a restored stone facade, a first-floor cheese and cocktail lounge and two upper-story apartments.
• Grundy Center - Built in 1887 as a department store, a long-vacant building will house a furniture and home decor showroom, as well as a hair and nail salon.
• Ottumwa - A fire-damaged 1890 building will be transformed into a first-floor steakhouse and three upper-story apartments.
• West Des Moines - A vacant 1930s church will be converted into 20 salon suites, providing affordable space for independent businesses.

"The impact of these projects goes beyond the buildings themselves," said Debi Durham, director of IEDA and the Iowa Finance Authority. "They bring new businesses, new residents and more reasons to head downtown. And that momentum can spread beyond one building or one block and throughout the entire community."

The grants are administered through IEDA's Iowa Downtown Resource Center, which includes the Main Street Iowa program. Funding is awarded as matching grants to local Main Street programs for selected projects. The estimated total cost of the 11 projects is more than $4.3 million.

"The Challenge Grant has consistently pushed many projects in Main Street communities forward," said Jim Engle, director of the Iowa Downtown Resource Center. "These downtown building rehabilitation projects have created better business climates, brought historic buildings back to life and created a new, exciting vibe in our Main Street districts."

Since the first Challenge Grants were awarded in 2002, the program has provided more than $17.6 million in funding, leveraging more than $76.8 million in additional investment.

For more information about the Main Street Iowa Challenge Grant program, contact Sarah Lembke at 515.348.6181 or [email protected].

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View the 2026 Main Street Iowa Challenge Grant awardees and project descriptions.

Request photos of recipients.