DES MOINES -- A state board on Friday approved $100,000 in funding to a growing Sioux City tech firm that developed a system that streamlines construction payments.
The Iowa Economic Development Authority Board granted Demonstration Loans to lienwavers.io and seven other startups. The Demonstration Loan program provides financial and technical assistance to encourage high-technology prototype and concept development activities that have a clear potential to lead to commercially viable products or services within a reasonable period of time.
The $100,000 loan awarded to lienwavers.io is designated for proof of concept work, product refinement, market planning activities, and hiring key personnel, according to a news release from the Economic Development Authority.
Most transactions in the construction industry involve lien waivers, a legal document from a contractor, subcontractor, supplier or other party holding a mechanic's lien stating that they have been paid in full and waiving future lien rights to the disputed property. Traditionally, completing lien waivers and mailing payments is a time-consuming proces.
lienwavers.io's cloud-based construction payment platform integrates with accounting and project management systems to extract payment information, enabling builders to process lien waivers and pay vendors quickly and electronically.
“What we’ve done is we've built software that facilitates that exchange of lien waiver for payment and it gives both parties — the general contractor and the subcontractor — the confidence that if they send a payment, they are going to send a lien waiver back and if they send a lien waiver, they are going to have their payment, so we act as a trusted third party,” lienwavers.io CEO Geoff Arnold said in an interview earlier this year.
The primary purpose of Iowa's Demonstration Fund is to help businesses with a high-growth potential reach a position where they can attract later-stage, private-sector funding.