It’s official, 38,591 new businesses were formed in Iowa in fiscal year 2026, the state’s biggest single year jump in at least a decade. That brings out total to 344,679 active businesses and Iowa Secretary of State, Paul Pate comes in the studio to break it all down, also discussing their anti-fraud and anti-trafficking efforts.
Pate also unpacks the new STOP Fraud Act (HF2678), a law his office advocated for that fights fraudulent business filings. He also explain how his office has been making online processes more efficient so his staff remains present to help expedite Iowans requests and he explains why his office has activated area businesses to look for, and fight human trafficking.
Pate recently announced a historic surge in entrepreneurial activity across the state. During an appearance on the Iowa Business Podcast, Pate revealed that Iowa has achieved a new record with over 38,591 new business registrations this year alone. This economic milestone represents a significant 17% jump in growth over the past year, bringing the state’s total number of active businesses to 344,679. According to Pate, this rapid expansion translates to roughly 100 new businesses being organized every single day.
Pate attributed this momentum to post-COVID career re-evaluations, lower interest rates, and Iowa’s remarkably stable economic cycle. To support this influx, his office transitioned almost all filings online to offer 24/7 access and eliminated search fees common in neighboring states. Pate emphasized the role of modern innovation in leveling the playing field for these incoming entities, stating, “Technology has given a lot of these small businesses a better and more stable footing to work from, because they can’t afford to have in-house specialties for a CPA or an HR person and, or someone who’s their tech expert”.
Iowa stories for your inbox
Justin, David, & Kaylee cover Iowa news, agriculture, business and tech. No clickbait. No rage. No agenda. Support our vision and subscribe!
Combating Fraud and Protecting “Iowa Nice”
The dramatic increase in business creation has also brought distinct challenges, particularly regarding foreign bad actors exploiting the state’s wholesome reputation. Pate discussed the implementation of HF2678, the Stop Fraud Act, which grants his office the authority to investigate and quickly remove fraudulent businesses that utilize real residential addresses without homeowners’ consent.
This legislative action comes in response to rising deceptive practices; last year, the Attorney General’s office received 4,200 consumer fraud complaints. Address fraud often involves entities setting up digital fronts to appear as trustworthy local operations. Addressing these deceptive practices, Pate explained, “What we suspect these people were doing is they were wanting to form a, a company so they could set up a bogus website and run a business somewhere”.
Mobilizing Businesses Against Human Trafficking
Beyond economic management, Pate’s office continues to spearhead the Iowa Businesses Against Trafficking (IBAT) initiative to counter sex and labor trafficking. The program focuses on training everyday employees—such as hotel staff and airport personnel—to recognize the signs of trafficking and leverage their collective presence as a community defense system.
The movement has scaled rapidly within Iowa and has even expanded to six neighboring states. Reflecting on the program’s massive reach, Pate shared, “We have over 1,000 businesses representing over several hundred thousand employees, and what they do is they take time to share the information with their employees or their customers or their suppliers”.