Summary
(Click the image to download the entire report)
The Nebraska Business Innovation Act (BIA) Microenterprise Assistance Program is a critical tool for fostering small business development across the state, particularly in economically distressed areas. The program encourages the growth of a wide range of industries by providing funding for lending and technical assistance that serves microenterprises, which are businesses with 10 or fewer employees.
Historically, funding under the program has been open to 501(c)(3) nonprofit organizations based in Nebraska who partner with the Nebraska Department of Economic Development (DED) to support entrepreneurs across the state. While the program is required by statute to disburse its budget in an even split between lending capital dollars and technical assistance funding, eligible organizations can apply for and receive capital only, technical assistance funding only, or both.
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 (“the Collaborative”) and provide one-on-one technical assistance to individuals who may not qualify for traditional financing or who need information and education on sound business practices. Through the Collaborative, BIA Microenterprise Assistance Program technical assistance funding has helped start and expand thousands of businesses across the state.
In 2024 alone, the Collaborative served more than 4,000 entrepreneurs who received over 12,000 hours of individualized business counseling. Additionally, the partners hosted almost 350 training sessions for nearly 6,000 participants. The Collaborative helped deploy over $9.8 million in small business loans—investments that directly led to job creation, business expansion, and long-term economic stability for Nebraskans.
In calendar years 2024 and 2025, $1.477 million was available annually for microenterprise capital lending, and an additional $1.477 million was awarded annually for technical assistance services. In 2025, the Nebraska Legislature Appropriations Committee budget reduced state funding for the overall BIA by $3.75 million. The BIA comprises five programs, of which the Microenterprise Assistance Program is one. Despite legislative intent to fund the BIA at a reduced level, including the Microenterprise Assistance Program, the DED placed a hold on all new contracts under the program in October of 2025.
In December 2025, Governor Pillen Nebraska announced his intent to request a $15 million appropriation to fund the BIA for the 2026-2027 fiscal year with the goal of enhancing support for startups and innovation in Nebraska, boosting proven programs, and reinforcing broader efforts to grow the state’s economy.
The Microenterprise Assistance Program’s investments are building a stronger, more resilient Nebraska by supporting entrepreneurs who are overlooked by other funding sources. No other program is dedicated to serving Nebraskans who face the highest barriers to business ownership, a demographic that includes low and middle-income individuals, immigrants, rural residents, and women, who are offered access to both technical assistance and capital. As the only state program designed specifically to reach and uplift these entrepreneurs, the Microenterprise Assistance Program is indispensable to expanding Nebraska’s economic growth.
