Small business assistance bill advanced

A bill that would implement a statewide pilot program to provide technical assistance to small businesses was advanced from general file April 26.

Lincoln Sen. Danielle Conrad, sponsor of LB345, said the bill was based on research indicating that small businesses often lack access to the demographic data and sophisticated market analysis needed to expand and succeed.

“What we’re really talking about is putting market data in the hands of small businesses who otherwise wouldn’t be able to afford it,” she said.

A Banking, Commerce and Insurance Committee amendment, adopted 30-0, became the bill and would establish the Small Business Innovation Act.

Under the bill, the state Department of Economic Development would administer the pilot program, which would assist up to 40 Nebraska-based growth businesses, at least one half of which would be located in counties with fewer than 50,000 inhabitants.

A qualifying business would have between five and 50 employees and annual sales revenue between $500,000 and $2.5 million.

“The reason that definition was chosen,” Conrad said, “was to ensure that we’re targeting these resources to businesses that have the ability to create high-wage jobs.”

Conrad said the bill would assist companies too small to qualify for Nebraska’s traditional economic development tools for recruiting and retaining businesses, such as the Nebraska Advantage Act.

Sen. Galen Hadley of Kearney agreed, saying the bill would fill a gap in the state’s economic development plan.

“We all have businesses in our communities that started small and that grew into large, vibrant companies,” he said.

Conrad offered an amendment to clarify the bill’s funding mechanism.

The amendment would appropriate $200,000 from the general fund in fiscal year 2011-12 and FY2012-13 to carry out the pilot program, which would be offset by reducing the total amount of tax credits granted under the Community Development Assistance Act by $200,000 per year for the same time period.

Following adoption of the Conrad amendment 29-0, senators advanced LB345 on a 31-0 vote.