Economic development changes advance

Lawmakers gave first-round approval March 13 to a bill that would make changes to two Nebraska economic development programs.

LB1114, introduced by Omaha Sen. Heath Mello, would place a pilot program currently under the Small Business Innovation Act under the umbrella of the Business Innovation Act. The pilot program provides technical support for Nebraska-based, high-growth businesses to foster growth and development.

In addition, the bill would extend the Business Innovation Act termination date from Oct. 1, 2016 to Dec. 1, 2021.

LB1114 also would appropriate $50,000 to a new High Growth Business Development Cash Fund, which would be administered by the state Department of Economic Development. The fund would be used to commission an analysis of ways to support and increase venture capital in Nebraska, including an examination of best practices in other states.

Finally, the bill would change a cap on grants in the Community Development Assistance Act. The current cap of $350,000 per year would be reduced to $300,000 for fiscal year 2014-15.

Mello said the reduction would be used to offset funding for LB1114’s venture capital analysis provision.

Lincoln Sen. Danielle Conrad supported the bill, saying it is important for the state to evaluate existing programs in order to continue providing appropriate support for small business innovation and entrepreneurship.

“We’ve seen continued improvement and progression in a variety of competitiveness rankings,” Conrad said, but added that the state continues to lag in access to venture capital.

Following the 29-0 adoption of a technical amendment offered by Mello, senators advanced the bill to select file 31-0.