Financing
A variety of financing options are available to companies interested in acquiring capital for start-up, expansion, or relocation to Burt and Nebraska.
Local Resources
First National Bank Northeast
Two locations in Oakland, also Lyons, Tekamah
Phone: 402.687.2640
First Nebraska Bank
Decatur
Phone: 402.349.5353
Washington County Bank
Tekamah
Phone: 402.374-2020
Tax increment Financing (TIF) is primarily designed to finance the public costs associated with a private development project. Essentially, the property tax increases resulting from a development are targeted to repay the public investment required by a project.
TIF provides a means of encouraging private investment in deteriorating areas by allowing city governments to devote all property tax revenue increases to repay the public investment needed to attract development.
CDBG Economic Development Revolving Loan Fund - City of Tekamah
The primary purpose of the Revolving Loan Fund is to provide financial incentives and opportunities to maintain and expand the community's economic base. Eligible activities are direct loans to eligible businesses and industries for fixed assets which include the acquisition of land; the acquisition, construction, reconstruction, rehabilitation or installation of commercial or industrial buildings/structures; and the acquisition of machinery and equipment.
Contact Burt County Economic Development Corporation for more information on these two programs at 402.374.2953
Regional Resources
Northeast Nebraska Development District Loan Programs
The Northeast Nebraska Development District Revolving Loan Fund (RLF) was created to help fund economic development projects within the District’s 22 county region of Northeast Nebraska. The RLF loans provide for subordinate or gap financing for micro-enterprise, in conjunction with local financial institutions: allowing the business owner the ability to expand a current business, transfer of ownership or purchase an existing business. Loans range from $5,000 to $100,00, but not more than 40% of total financing needs. Loans can be used on fixed assets and working capital. At least one job must be created or retained per each $20,000 created.
State Resources
Community Development Block Grant (CDBG) Program
The Community Development Block Grant program provides Nebraskans appropriate, affordable and accessible housing and infrastructure; and quality jobs through financing new and expanding businesses.
The Customized Job Training Program
The Customized Job Training Program provides training assistance on projects that offer an opportunity for economic development in Nebraska. Use of the funds is limited to eligible companies and eligible training projects. In general, the types of companies qualifying are those engaged in activities that sell goods/services primarily to a non-Nebraska market: manufacturing, processing, warehousing, and headquarter facilities are some examples.
Nebraska Worker Training Program
The Nebraska Worker Training Program provides grants to assist firms in the retraining and upgrading of existing employees. Funds are available each quarter and use is flexible to meet the needs of the employer. The source of training, provider, and materials are at the company’s discretion. A match of employer’s funds for each dollar of state funds received is required.
Work Opportunity Tax Credit (WOTC)
The Work Opportunity Tax Credit is a federal tax credit program available to employers who hire employees from "targeted" groups which have historically had difficulty in finding employment. The tax credit is used to reduce the federal tax liability of private, for-profit employers. This program covers only new hires - the employee may not have worked for that employer in the past.
Employers can claim a maximum federal income tax credit of $2,400 per eligible employee (for all target groups except Welfare-to-Work). This is the full WOTC tax credit of 40% of the first $6,000 in wages paid within one year of hire.
Rural Enterprise Assistance Project
The Rural Enterprise Assistance Project's (REAP) Loan Programs focus on providing capital for rural Nebraska based start-up and existing businesses. REAP's loan products are coupled with business technical assistance and counseling to clients to help them prosper in their business.
Invest Nebraska Corporation
Invest Nebraska helps emerging Nebraska-based businesses identify their barriers to success through business evaluation, develop strategies to overcome the barriers, and then connect with the right network of financial, educational and professional resources.
Nebraska Investment Finance Authority
The Nebraska Investment Finance Authority (NIFA) provides a broad range of financial resources for agricultural, residential, manufacturing, medical and community development endeavors, and provides technical assistance for activities related to these areas while preserving and growing the asset base used to provide these resources.
Tax-exempt issuers, such as NIFA, cities, and counties, have the authority to issue revenue bonds or other debt instruments to raise funds used to finance eligible development projects. Industry targets include manufacturing, warehousing, transportation, and tourism and recreation services.
Nebraska Economic Development Corporation
The Nebraska Economic Development Corporation (NEDCO), a certified development company (CDC), is a statewide private non-profit corporation licensed by the U.S. Small Business Administration to finance small business by providing long term fixed rate financing for fixed asset projects. NEDCO's mission is to further the economic development and social welfare of Nebraska and its environs with specific emphasis on promoting and assisting the growth and development of business concerns. The principal objective is to foster increased employment opportunities and expansion of business.
Capital Gains Exemption
A one-time exemption from state personal income tax on gains realized from selling or exchanging stock of a corporation acquired by an employee with the corporation is available. The corporation must do business in Nebraska for at least three years and must have a minimum of five shareholders, at least two shareholders/groups of shareholders must be unrelated and no more than 90 percent of the stock can be owned by one related group of shareholders. The provision is an excellent recruitment tool for growth-oriented companies that use company stock options as part of employee compensation or retirement programs.
Federal Resources
U.S. Small Business Administration – Small Business Loans
The U.S. Small Business Administration (SBA) offers numerous loan programs to assist small businesses. SBA is primarily a guarantor of loans made by private and other institutions.
USDA Rural Development Nebraska
USDA Rural Development Nebraska assists Nebraskans in accessing USDA financing programs that are designed to offer: Affordable home ownership and repair opportunities; Business opportunities to build and sustain healthy economies; Financial and technical assistance to cooperative and value-added efforts across Nebraska; Safe and modern rental housing facilities; and Essential public facilities and services including Water and sewer systems, Community facilities, Telecommunications equipment and facilities.