Nebraska small business grants, loans and innovation funds (2026)

Where Nebraska’s grant money actually sits

Nebraska’s business programs pay out in four different ways:

• Repayable loans. The Nebraska Growth Loan Fund (SSBCI) and the microloans made by DED-funded nonprofits ⁠²⁠¹⁴.
• Equity investments (you give up ownership). The Nebraska Seed and Development Fund (SSBCI) and the Nebraska Seed Investment Program, both placed through Invest Nebraska ⁠³⁠⁹.
• Matching grants. The Prototype Grant, the SBIR/STTR Initiative, the Academic R&D Grant and STEP, each needing your own money or a federal award alongside DED’s ⁠⁶⁠⁷⁠⁸⁠¹¹.
• Local funds. Sales or property tax money that 84 cities and villages set aside under LB840, each under its own local plan ⁠¹³.

The Business Innovation Act grants are the closest thing Nebraska has to a business grant, and their funding was briefly in doubt. DED paused the programs in the last quarter of 2025 for a performance review. On December 22, 2025, the Governor ordered funding restored, and he asked that BIA appropriations rise from about $12 million to $15 million starting in FY2026-27 ⁠¹⁰. DED’s guidelines still say it may suspend applications when funds run low, so call program staff before you spend any money you plan to claim ⁠⁶⁠⁷.

The Nebraska Growth Loan Fund: a second loan beside your bank’s

Treasury approved $64.0 million in SSBCI money for Nebraska. DED put $32.0 million into the Nebraska Growth Loan Fund (NGLF) and $32.0 million into the Nebraska Seed and Development Fund ⁠³. The NGLF does not lend on its own. A bank or other lender makes the main (senior) loan, and the state adds a companion loan through a community development financial institution (CDFI). That companion loan can cover up to 50% of the senior loan, but DED expects most to be 25% or less ⁠²⁠³. Each NGLF loan tops out at $5,000,000 and needs at least a 1:1 match from a qualified lender ⁠².

The two CDFIs that source and package every NGLF loan are Nebraska Enterprise Fund and Omaha 100 ⁠²⁠³. Omaha 100 calls its version the SSBCI Matching Loan: if a bank lends $25,000, Omaha 100 can lend up to another $25,000 ⁠⁴. Treasury lists start-up costs, working capital, intellectual property, franchise fees, equipment, inventory and real estate purchase, construction or renovation as eligible uses ⁠³. Omaha 100 excludes marijuana, gambling, pyramid sales and passive real estate ⁠⁴. You still need a lender willing to make the senior loan ⁠².

Equity, not grants: NSDF and the Seed Investment program

The Nebraska Seed and Development Fund (NSDF) is the SSBCI equity half. Invest Nebraska Corporation invests alongside angel investors and venture funds in seed and Series A rounds ⁠³. Treasury’s summary splits the $32.0 million into a $12 million Nebraska Accelerator Fund (about 126 companies) and a $20 million Nebraska Emerging Growth Fund (about 30 companies) ⁠³. DED caps NSDF participation at $5,000,000 per company and requires a 1:1 private investment match. Eligible companies have no more than 750 employees and a headquarters and physical location in Nebraska ⁠².

The Nebraska Seed Investment Program is the Business Innovation Act’s own equity tool. It invests up to $500,000 per project to commercialize a prototype or process ⁠⁹. You must have raised matching funds equal to the investment within the six months before the state invests. The required match is 25% for value-added agriculture projects. Applicants must be early-stage, non-retail primary-industry companies with 500 or fewer employees operating in Nebraska. Contact Invest Nebraska first; it places and holds the investments ⁠⁹. With either program, the investor becomes a part-owner of your company.

Business Innovation Act grants for product developers

The Nebraska Innovation Fund Prototype Grant is the main true grant. It pays up to $150,000 per project to Nebraska businesses with fewer than 500 employees in non-retail primary industries that add value to products or processes in Nebraska ⁠⁶. You need cash matching equal to 50% of the award, already in hand when you apply. The match drops to 25% for value-added agriculture and for projects in an Omaha Economic Redevelopment Area ⁠⁶. Grants are paid as reimbursements: DED repays 66% of project costs, or 80% for value-added agriculture ⁠⁵. The match cannot come from money the Nebraska Legislature appropriated ⁠⁶.

The money can pay for employee or contractor wages, prototype materials and limited preapproved tooling. Work must be finished within 24 months ⁠⁵⁠⁶. DED gives priority to scalable or platform technologies, to development work done by Nebraska hires and to first-time applicants. It caps the program at $6 million a year ⁠⁶. The FY2027 window runs from July 6, 2026 to June 30, 2027 at 11:55 p.m. CDT, or until the money runs out. The program contact is Ben Kuspa, 402-613-8119 ⁠⁵.

The Nebraska Academic Research and Development Grant pays for R&D that a Nebraska college, university or faculty member carries out for your business. Phase I awards are capped at $100,000 and Phase II at $400,000. Phase II is open only after a Phase I that DED counts as successful ⁠⁸. The match is 1:1, or 25% for value-added agriculture, and DED makes no more than two awards per project in any four-year period ⁠⁸.

SBIR/STTR Phase 0 and matching awards

Nebraska adds state money before and after a federal SBIR or STTR award, up to $6 million a year in total ⁠⁷:

To qualify, your for-profit small business must have its principal place of business in Nebraska. It must also do at least 51% of the federally funded work in the state ⁠⁷. NSF applicants must already have the agency’s invitation to submit a full Phase I proposal before they can get Phase 0 money. Phase 0 cannot pay for the NSF Product Pitch itself ⁠⁷. Staff review proposals every other week and usually respond within 3 to 5 weeks. Payment is by reimbursement ⁠⁷. The contact is Brad Kulwicki, 402-480-9380 ⁠⁷.

STEP export reimbursements through DED

DED runs Nebraska’s State Trade Expansion Program with SBA funding. STEP Year 13 is open cycle through DED’s AmpliFund portal ⁠¹¹. It reimburses foreign trade show and domestic trade show costs, U.S. Department of Commerce export services, foreign sales trips and export training. You must cover 25% of the direct costs yourself: on $10,000 of expenses, you pay $2,500 ⁠¹¹. Applicants must be U.S.-owned, headquartered in Nebraska and in business for at least one year. They must also meet SBA small-business size standards and export products with at least 51% U.S. content ⁠¹¹. DED’s STEP page publishes no per-company cap; ask Isadora Sutton ([email protected]) before you book travel.

Worker training: the NDOL grant that stopped taking applications

In 2025 the Nebraska Department of Labor (NDOL) posted that, because LB 265 passed, it was no longer taking applications. It refers employers to their area job center for other workforce programs ⁠¹². NDOL announced a new federally funded employer training grant in October 2026, but its program page could not be opened when this guide was checked. Ask an NDOL job center for the current terms before counting on it.

LB840 city funds and DED-backed microlenders

For an ordinary main-street business, help is more likely to come from your city than from the state. Under the Local Option Municipal Economic Development Act (LB840), voters in a city or village can approve sales or property tax money for a local economic development plan. That money can fund direct loans or grants for fixed assets and working capital, loan guarantees, and job-training grants or loans ⁠¹³. DED lists 84 participating communities, including Grand Island, Norfolk, North Platte, Columbus, Fremont, Bellevue, Scottsbluff, Beatrice and McCook. Lincoln and Omaha are not on the list ⁠¹³. Qualifying businesses are mainly manufacturers, R&D, tourism and interstate sellers. In communities of 5,000 people or fewer, any business activity can qualify, and the business does not have to be inside city limits ⁠¹³. Each city sets its own amounts, so call the city clerk or local development corporation.

Through its Microenterprise Assistance Program, DED pays nonprofits to make small loans and give training. Micro-lending grants of up to $1,477,000 a year go to nonprofits, not to businesses ⁠¹⁴. The current providers are Catholic Charities, Community Development Resources, Grow Nebraska, Nebraska Enterprise Fund, the Northeast Nebraska Economic Development District, the Center for Rural Affairs, Lending Link and McCook Economic Development Corporation ⁠¹⁴. You apply to one of these lenders, and their loans must be repaid.

Lining up Nebraska funding, step by step

1. Start with a free NBDC consultation

   The Nebraska SBDC is part of the Nebraska Business Development Center at UNO, which has 8 offices and serves clients mostly at no charge ⁠¹⁵. It also runs an Innovation & Technology program and an APEX Accelerator for government contracting ⁠¹⁵. Call 402-554-6232 and bring your business plan, financial statements or projections, and how much money you need.

2. Match your project to the right money

   Bank loan gap: NGLF. Product development: Prototype Grant. Federal SBIR/STTR proposal: Phase 0. Main-street business: LB840 and DED microlenders ⁠²⁠⁶⁠⁷⁠¹³⁠¹⁴.

3. For the NGLF, get a lender and a CDFI together

   Ask your bank to make the senior loan, then apply with Omaha 100 ((402) 342-3773) or Nebraska Enterprise Fund. Omaha 100 posts a required-documents checklist ⁠²⁠⁴.

4. For a BIA grant, confirm funding, then apply in AmpliFund

   Email or call the program contact to confirm money is left for FY2027. Then submit the application, business plan, budget and proof of your cash match through the AmpliFund link on the program page ⁠⁵⁠⁶. Incomplete applications are returned, and requested extra documents are due within 15 days ⁠⁶⁠⁷.

5. Watch the SBIR clocks

   File Phase 0 at least 30 days before the federal deadline and Phase I/II matches within 45 days of the federal award notice. DED returns late applications without review ⁠⁷.

6. Keep receipts for reimbursement

   The Prototype, SBIR/STTR and STEP grants pay back costs you have already paid and documented, so plan cash flow to cover them first ⁠⁵⁠⁷⁠¹¹.

7. If you are turned down, ask why and reapply

   An internal DED review committee decides BIA grants after a staff review and, sometimes, an interview. Ask staff which scoring criteria you missed, then apply again in the same fiscal year if funds remain, or after July 1 ⁠⁶⁠⁷.

For other Nebraska help, see the Nebraska overview, or compare states on the small business grants hub.