Microenterprise Development Fund Enhancement

Also part of the economic development package is the Microenterprise Development Fund Enhancement, which doubles the total support for technical assistance and loans for microenterprises to $500,000.

Purpose:

To assure that micro businesses realize the full potential to create jobs, enhance entrepreneurial skills and activities, and increase low-income households' capacity to become self-sufficient; and to facilitate the development of a permanent, statewide infrastructure of microlending support organizations.

Funding:

The legislature has appropriated $497,500 per year for fiscal years starting 7-1-05 and 7-1-06 to the program.

Leverage:

The act authorizes the Nebraska Department of Economic Development (DED) to contract implementation to astatewide microlending support organization provided that theorganization matches LB 327 funds. A second "tier" of matching is required by microlending delivery organizations.

DED currently contracts the Nebraska Microenterprise Partnership Fund to administer the program.

Awards:

Twelve awards totaling $447,500 were made to microenterprise organizations accross the state in September, 2005.