Nebraska Innovation Fund
Ben Kuspa, Business Innovation Consultant
Nebraska Department of Economic Development
301 Centennial Mall South, 4th Floor
P.O. Box 94666
Lincoln, NE 68509-4666
Telephone: (402) 471-3794 or (800) 426-6505
Email: ben.kuspa@nebraska.gov
Website: www.neded.org
Purpose of the Initiative
Provides financial assistance to individuals and businesses operating in Nebraska to support proof of concept activities and commercialization of products or processes.
Nebraska Prototyping Program (pre-seed stage)
The Nebraska Innovation Fund (NIF) establishes a program to provide financial assistance to individuals and businesses operating in Nebraska to support proof of concept activities. The maximum amount of funding for the Prototype Program will be $4 million per year subject to availability. There will be an open application cycle, and approved applications will be funded until the allocation is exhausted; however, DED reserves the right to suspend acceptance of applications depending on funding availibility. Matching funds must be provided as a cash match and must be available at the time of application. Pre-Seed Stage Eligible Business – Any Nebraska based corporation, Limited Liability Company, partnership, registered limited partnership, sole proprietorship, business trust, or other entity with less than 500 employees, engaged in non-retail primary industries that are adding value to products or processes in Nebraska. Eligible Uses of Funds – Pre-Seed Stage funds may be used for creating a prototype of a product stemming from research and development at a business operating in Nebraska or research at a public or private college or university in Nebraska.
Pre-Seed Fund Provisions
- An eligible business with up to 500 employees
- Applicants must provide matching funds equal to 50% of the grant amount, or 25% for valueadded agriculture projects. Matching funds must be available at the time of application.
- Maximum grant funding of $150,000 per project
- Funds must be expended within 24 months of the awarding decision
Pre-Seed Fund – Application Requirements
- Complete application
- Complete business plan with proof-of-concept demonstration
- Evidence of matching funds
Nebraska Commercialization Program (seed stage)
The Business Innovation Act (BIA) establishes a program to provide financial assistance to individuals and businesses operating in Nebraska to support proof of concept activities and commercialization of a product or process. The maximum amount of funding for the Commercialization Program will be $4 million each year subject to availability. There will be an open application cycle, and approved applications will be funded until the allocation is exhausted; however, DED reserves the right to suspend acceptance of applications depending on funding availability. Seed Stage Eligible Business – Any Nebraska based corporation, Limited Liability Company, partnership, registered limited partnership, sole proprietorship, business trust, or other entity with less than 500 employees, engaged in non-retail primary industries that are adding value to products or processes in Nebraska. Eligible Uses of Funds – Seed Stage funds may be used by the business to fund commercialization of its own prototype or process.
Eligible uses of seed fund investment may include, but is not limited to:
- Working Capital
- Leasehold Improvements
- Equipment
- Job Creation
- Job Training Seed Fund Provisions
- An eligible business with up to 500 employees
- Investment must be matched at least 100%, or 25% for value-added agriculture projects, by the applicant
- Maximum funding of $500,000 per project
- Funds must be expended within 24 months of the awarding decision
Seed Fund – Application Requirements
- Complete application
- Complete business plan with proof-of-concept demonstration
Nebraska Research and Development Program
“Provides Nebraska businesses with the opportunity to partner with the State of Nebraska, and Nebraska colleges and universities to fund research and development activities that lead to new or better products, processes, and innovations that, without state assistance, may not occur.”
“The Research and Development Grant program provides an opportunity for the State of Nebraska to partner with Nebraska businesses, Nebraska Colleges and Nebraska Universities to fund research and development activities that lead to new or better products, process, and innovations that might not result without state assistance. Any Nebraska based for-profit business regardless of employment size may request financial assistance to pay Nebraska public, private colleges, university educational institutions or faculty for academic research and product development undertaken on their behalf. R&D Grant funding may be used for applied research, new product development, or new uses of intellectual property already generated by a private or public college or university in Nebraska. R&D Grant funds may be used for related expenses (not considered ongoing expenses) that are incurred by the business seeking federal agency approval, certification, or considered supportive in achieving the scope of work contemplated by the participating Nebraska College or university. The research and development must be directed toward: the commercialization of new products, and or modification of existing products that lead to substantially improved marketability, or the improvement of existing processes that may provide a new source of revenue to Nebraska business. Forty-percent (40%) of all the investment made with Academic R&D funding is targeted for projects that best alleviate chronic economic distress in distressed areas of Nebraska. These represent census tracts or counties that have: a per capita income that is less than the state average, experienced a loss of population between the most recent federal decennial censuses, or an unemployment rate that is greater than the average state unemployment rate. Applicants seeking financial assistance must identify the sources and uses of funds outlining the anticipated expenditures, need for funding, and purpose and value of any funding that is directed for work occurring outside of Nebraska but considered critical to the project. The Department encourages projects that utilize the capabilities and expertise of Nebraska colleges, universities, businesses, and rely to a lesser degree on equipment purchases, fabrication, or consultation with contractors, vendors, or resources located out of state.”
Updated April 2018 by Kevine Lidoro