Nebraska Small Business Funding Programs

Small businesses in Nebraska have access to a diverse range of funding programs designed to help entrepreneurs and established companies grow. In this post, we break down some of the key state-level and federal programs available, along with eligibility requirements, application deadlines, and the benefits they offer.

Active State-Level Programs in Nebraska

Tax Incentive Programs

ImagiNE Nebraska Act

• Status: ✅ Active and Accepting Applications
• Eligibility:
  Open to any business committed to expanding in Nebraska by investing capital and creating new jobs. The program has multiple tiers (8 application levels), with the base tier requiring at least 5 new full-time jobs and $250,000 in new investment at a Nebraska facility.
• Application:
  Open year-round, but approval must be secured before project commencement. Companies then have a performance period (typically 5 to 7 years) to meet their targets.
• Key Benefits:
  Offers performance-based tax credits (4-7% investment credits, 4-9% wage credits), which can be used to offset state tax liabilities. The 2025 refund cap is $150 million. Higher tiers provide additional benefits, including sales tax refunds on construction materials and personal property tax exemptions.
• More Info: Nebraska Department of Revenue - ImagiNE Act

Investment and Loan Programs

State Small Business Credit Initiative (SSBCI) Programs

Nebraska has been allocated $64 million in SSBCI funding, split between two programs:

• Nebraska Growth Loan Fund (NGLF) - $32 million:
  • Status: ✅ Active
  • Eligibility: Small businesses that are "bankable or near-bankable" but need additional financing, with a focus on underserved businesses and communities.
  • Benefits: Provides loan participation up to 50% of principal loan amount, lowering the lender's risk. Target ratio: 75% private investment to 25% SSBCI funding.
  • Application: Open year-round via Nebraska Enterprise Fund and Omaha 100.
• Nebraska Seed and Development Fund (NSDF) - $32 million:
  • Status: ✅ Active
  • Eligibility: High-growth Nebraska companies with up to 750 employees, which can attract private investment (1:1 match required).
  • Benefits: Offers direct seed and Series A equity investments, administered by Invest Nebraska Corporation.
  • Application: Rolling basis through Invest Nebraska.

More Info: U.S. Treasury SSBCI Overview

Nebraska Seed Investment Program

• Status: ✅ Active
• Eligibility:
  Early-stage, high-growth companies in Nebraska developing new products, processes, or technologies, with the potential to raise private capital. Companies must be in non-retail primary industries with 500 or fewer employees.
• Application:
  Continuous intake—businesses pitch to Invest Nebraska. Contact: Shelby Strattan (shelby@investnebraska.com)
• Key Benefits:
  Equity investments of up to $500,000 per company, with a 1:1 match from private investors (matching funds must be raised within past 6 months). Value-added agriculture projects require only 25% match (4:1 ratio).

Microenterprise Loan and Assistance Programs

• Status: ✅ Active
• Microenterprise Loans:
  Available through certified microloan delivery organizations:
  • Nebraska Enterprise Fund – Direct loans $5,000 to $150,000; training, mentoring, and loan guarantees
  • Catholic Charities – Technical assistance, business training, and financing
  • Community Development Resources (CDR) – Capital, technical assistance, training
  • Center for Rural Affairs (CFRA) – Technical assistance and microloans
  • Lending Link – Small business microloans
• Application: Rolling basis—apply directly to local microloan providers.
• Key Benefits: Low-interest microloans with accompanying technical assistance in business planning and training.
• Nebraska Advantage Microenterprise Tax Credit:
  • Eligibility: Businesses with 5 or fewer employees making new investments or hiring in targeted communities.
  • Benefits: A 20% refundable income tax credit on new investment or payroll, up to $10,000 over the program's life.
  • More Info: Microenterprise Tax Credit Guide

Community Development Block Grant (CDBG) – Economic Development

• Status: ✅ Active (Note: No additional funding cycles planned for 2025; next cycle opens July 2026)
• 2025 Awards: $14.17 million awarded to 38 projects in 33 communities for Downtown Revitalization, Planning, and Public Works.
• Eligibility:
  Projects in non-entitlement cities or counties that qualify as low-to-moderate income areas. Businesses must agree to create jobs. Entitlement Communities (Lincoln, Omaha, Bellevue, Grand Island) administer their own programs.
• Key Benefits:
  Grants or low-interest loans for business expansion—purchasing equipment, real estate improvements, or working capital—with funds potentially forgivable upon meeting job creation criteria.
• Contact: Nicole Bartels (nicole.bartels@nebraska.gov)

Federal Tax Incentives – Opportunity Zones

• Status: ✅ Active (Extended and made permanent under the One Big Beautiful Bill Act of 2025)
• Nebraska Details: 44 Qualified Opportunity Zones across 18 counties, with Douglas County having the most (15 zones).
• 2025 Updates:
  • Program made permanent under OBBBA
  • Rural investments receive triple the standard step-up in basis (30% vs 10%)
  • Substantial improvement test cut in half for rural areas
  • New designations take effect in 2027
• Key Benefits:
  Tax deferral on capital gains until December 2026, 10-15% basis step-up at 5-7 years, and potential tax-free growth after 10-year hold.
• Contact: ded.opportunityzones@nebraska.gov
• More Info: Nebraska Opportunity Zones Portal

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⏸️ Programs Currently Paused

Nebraska Innovation Fund – Prototype Grant

• Status: ⏸️ Paused (October 2025)
• Background: Budget reduced from $14.7M to $11M for FY 2025-26. Governor Pillen vetoed higher funding, calling the program "duplicative."
• Historical Impact: $19 million awarded through 312 companies; generated $1.17 billion in annual economic output.
• When Active - Eligibility: Nebraska-based businesses with fewer than 500 employees in non-retail, value-adding industries.
• When Active - Benefits: Grants up to $150,000 on matching basis (50% match required; 25% for ag projects).
• Alternative: Invest Nebraska may have updates on program status.

Nebraska SBIR/STTR Matching Grants

• Status: ⏸️ Paused (October 2025)
• Note: Federal SBIR/STTR programs remain fully active—only Nebraska's state matching component is paused.
• When Active - Benefits:
  • Phase 0: Up to $5,000 for proposal preparation
  • Phase I match: Up to $150,000 or 65% of federal award
  • Phase II match: Up to $300,000 or 65% of federal award
• Federal Program (Active): SBIR.gov - Apply directly for federal SBIR/STTR funding
• Contact for Updates: Brad Kulwicki (bradley.kulwicki@nebraska.gov) | 402-480-9380

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❌ Discontinued Programs

Small Business Assistance Act (SBAA) - Discontinued

• Status: ❌ Repealed (2025)
• What It Offered: Grants up to $25,000 for startups and $12,500 for existing businesses with 5 or fewer employees.
• Alternatives:
  • SourceLink Nebraska - Free resource matching for entrepreneurs
  • Nebraska Enterprise Fund - Microloans and technical assistance
  • GROW Nebraska - Business training and coaching

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Federal Funding Programs (Always Available)

U.S. Small Business Administration (SBA) Loan Programs

Note: SBA updated its loan policies in June 2025 (SOP 50 10 8). Key changes include lowering the small loan threshold to $350,000 and raising the minimum business credit score to 165.

SBA 7(a) Loan Program

• Status: ✅ Active
• Eligibility:
  For-profit small businesses operating in the U.S. that meet SBA size standards (typically under 500 employees or meeting certain revenue limits).
• Application: Year-round through SBA-approved lenders.
• Key Benefits:
  Loans up to $5 million with 10.5-12% variable rates (as of 2025), long repayment terms (up to 25 years for real estate), and SBA guarantees 75-85% of the loan.
• Nebraska Preferred Lenders: Pinnacle Bank, First National Bank of Omaha, Wells Fargo, U.S. Bank, First State Bank Nebraska

SBA 504 Loan Program

• Status: ✅ Active
• Eligibility:
  For-profit small businesses with tangible net worth under $20 million, primarily for fixed assets like real estate or equipment.
• Application: Through a Certified Development Company (CDC) and a bank.
• Key Benefits:
  Long-term, fixed-rate financing up to $5.5 million with rates often below 7%, low down payments (as low as 10%), and 20-25 year terms.

SBA Microloan Program

• Status: ✅ Active
• Eligibility:
  Small businesses and startups with financing needs up to $50,000, designed for those with limited credit history or collateral.
• Application: Through local nonprofit intermediaries like Nebraska Enterprise Fund and Southeast Nebraska Development District (SENDD).
• Key Benefits:
  Loans average around $13,000, terms up to 6 years, with technical assistance and mentorship included.

Nebraska SBA District Office

10675 Bedford Ave Suite 100, Omaha, NE 68134 – One-on-one counseling, workshops, and connection to SBA partners.

Federal Grants and Incentives

Small Business Innovation Research (SBIR) / Small Business Technology Transfer (STTR) Programs

• Status: ✅ Active (Federal)
• Eligibility:
  U.S. small businesses (under 500 employees) engaged in R&D. SBIR is for in-house projects; STTR requires collaboration with a research institution.
• Application: Deadlines vary by agency (January, April, September cycles common).
• Key Benefits:
  Non-dilutive funding—Phase I: $50,000-$250,000; Phase II: up to $750,000+. No repayment or equity required.
• Nebraska Support: UNO NBDC SBIR/STTR Resources

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🆕 Essential Resources for Nebraska Entrepreneurs

SourceLink Nebraska

• What It Is: A one-stop shop connecting entrepreneurs to 870+ resources from 500+ organizations across Nebraska.
• Cost: Free, no registration required, available 24/7/365
• Features: Searchable by service type and location; Business Connect offers in-person resource coaching in communities statewide.
• Best For: Finding the right resource at the right time—from gap financing to technical assistance.

GROW Nebraska Foundation

• What It Is: Nonprofit providing marketing and training to small business owners since 1998.
• Services: Free trainings, one-on-one business coaching, membership benefits, Nebraska products store.
• Best For: Business training, technical assistance, and market access.

Nebraska Enterprise Fund

• What It Is: Certified CDFI founded in 1994, providing capital and business development services.
• Services: Direct loans $5,000-$150,000, training, mentoring, technical assistance.
• Impact: Over 1,700 small businesses served.
• Best For: Microloans and gap financing, especially for underserved entrepreneurs.

Nebraska Business Development Center (NBDC)

• What It Is: UNO-hosted center providing free consulting services statewide.
• Services: Business consulting, technology commercialization, SBIR/STTR support.
• Best For: Free expert guidance on starting and growing your business.

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Each of these programs offers unique opportunities for Nebraska's small businesses to access funding, whether through grants, loans, equity investments, or tax incentives. Given the significant changes in 2025, we recommend:

1. Start with SourceLink Nebraska to find personalized resource recommendations.
2. Verify program status directly with the administering agency before investing time in applications.
3. Consider federal programs (SBA loans, SBIR/STTR) which remain stable regardless of state budget decisions.

Sources: Nebraska Department of Economic Development; Nebraska Dept. of Revenue; U.S. Small Business Administration; U.S. Treasury; Silicon Prairie News; SBIR.gov; SourceLink Nebraska; GROW Nebraska; Nebraska Enterprise Fund. Last updated: December 2025.