More funds would be available for small business development in Nebraska under a bill amended and advanced from general file April 9.<\/p>\n
Introduced by Omaha Sen. Heath Mello, LB449 would increase the maximum amount of microloan funds from $1 million to $2 million that could be awarded annually by the state Department of Economic Development (DED). The department would be required to increase from $500,000 to $1 million the minimum amount it awards each year.<\/p>\n
A microloan is financial assistance designed specifically for a microenterprise, which, under the 2011 Business Innovation Act, is defined as a for-profit business with up to 10 full-time employees.<\/p>\n
As introduced, the bill also would require that 50 percent of microloan funds be used for loans not to exceed $100,000 and 50 percent of the loans be used for small business technical assistance. Currently, 70 percent of the loans distributed must not exceed $50,000 and 30 percent of the loans must be used for small business technical assistance.<\/p>\n
Since the loan program began, Mello said, the DED has awarded 409 microloans totaling $5.3 million. The program has helped entrepreneurs bridge the gap between dreams and reality for small business ownership, he said.<\/p>\n
\u201cWe have a small business initiative that works,\u201d Mello said. \u201cWhen you find something that works, you should do more of it.\u201d<\/p>\n
An Appropriations Committee amendment, adopted 31-0, incorporated provisions of two other bills.<\/p>\n
Provisions of LB569, introduced by Bancroft Sen. Lydia Brasch, would increase from $1 million to $4 million the maximum amount the department may award annually through matching federal grant programs for:
\n\u2022 small business planning;
\n\u2022 agriculture enterprise development;
\n\u2022 companies or individuals wanting to market a product prototype or process;
\n\u2022 companies using Nebraska public or private colleges or university faculty and facilities for new product research and development; and
\n\u2022 companies or individuals seeking to create a product prototype developed in a Nebraska business, public or private college or university, in which case the grant limit would be raised from $50,000 to $150,000 per project.<\/p>\n
Documents used by the department in administering the grants would be deemed confidential under the amendment.<\/p>\n
Provisions of LB450, also introduced by Mello, would require the state Tourism Commission to expand the use of tourism promotion funds for marketing assistance grants to communities and organizations.<\/p>\n
The commission would be required to develop a marketing grant program specifically for communities and organizations hosting events that have the potential to attract large numbers of out-of-state visitors. The commission director would be required to form a committee to review grant applications. Grant applicants would submit a marketing plan for their events and recipients would file a final report regarding attendance, fund use and marketing impact within 90 days of event completion.<\/p>\n
Other provisions of LB450 would create a fund for use by the commission to defray conference expenses and would require any state agency operating a grant program to encourage tourism to consult the commission in its grant review process.<\/p>\n
The amendment also would remove the requirement that 50 percent of microloans be disbursed in loans not exceeding $100,000.<\/p>\n
Mello said the amendment would allow the DED to have more flexibility in deciding how to most efficiently appropriate small business loans.<\/p>\n
Brasch supported the bill and amendment, saying the program has had proven success in both rural and urban communities.<\/p>\n
\u201cThis is how we grow Nebraska,\u201d she said.<\/p>\n
Lawmakers advanced the bill on a 33-0 vote.<\/p>\n","protected":false},"excerpt":{"rendered":"
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