Audra Espinoza, senior state policy manager, 402.603.0092, [email protected]; and Rhea Landholm, media and marketing manager, [email protected] or 402.603.0074
LYONS, NEBRASKA – The Center for Rural Affairs applauds Nebraska lawmakers for their passage of LB 1205, legislation that strengthens the state’s long-standing Microenterprise Assistance Program, which supports the state’s smallest businesses and the communities they serve.
In Nebraska, more than 70% of businesses have 10 or fewer employees, according to the U.S. Census Bureau. These small businesses, known as microenterprises, are contributors to the state’s economic engine.
The 30-year-old Microenterprise Assistance Program is housed within Nebraska’s Business Innovation Act (BIA) and is the only state-funded program that combines business coaching with direct lending to support entrepreneurs statewide.
Citing the microenterprise program’s strong return on investment, Sen. Stan Clouse introduced LB 1205 to ensure the program continues to receive appropriated funding of up to $3 million annually. According to Audra Espinoza, senior state policy manager with the Center for Rural Affairs, the change protects the microenterprise program from shifting budget priorities by solidifying the state’s intent to fund it annually.
“Microenterprise programs are one of the most effective tools we have to support rural entrepreneurs and strengthen local economies,” she said. “LB 1205 reinforces the state’s commitment to investing in small businesses that create jobs, grow wealth opportunities, and keep rural communities vibrant.”
In 2012, the Center for Rural Affairs partnered with the Nebraska Enterprise Fund, Community Development Resources, and Catholic Charities of Omaha to form the Nebraska Small Business Collaborative, which provides one-on-one business coaching to individuals who may not qualify for traditional financing or who need information and education on sound business practices.
A 2025 impact report from the Center found that over the last seven years the Nebraska Small Business Collaborative placed over 1,600 loans totaling $49.4 million and helped create or retain more than 35,000 jobs through lending and business coaching via partner organizations.
“Stable, predictable funding is critical for organizations working on the ground to support entrepreneurs,” Espinoza said. “This legislation sends a clear message that Nebraska values small business development as a cornerstone of its economic future.”
