The Nebraska Asset Modernization Initiative is designed to accelerate small manufacturers’ investment in modern assets. The financial incentives are available for investments made by existing companies that will, generally, within three months, modernize their production assets, expand their production lines to increase market share and/or target markets with new products.
Manufacturers and agricultural/food product processors that have been in business in Nebraska for more than 5 years, employ from 2 to 200 employees, and have net depreciable Nebraska-based assets of $10 million may be eligible. The resources are available as either a grant (“MAG”) or loan loss reserve (“CAP”).
Description of Programs
The Modern Asset Grant Program (MAG) provides a direct grant in an amount up to 6% of eligible basis for new or used (manufactured after 2005) machinery and equipment once it has been acquired and placed in service by an eligible business. A reservation of a grant award from NIFA must be received by the company prior to any commitment/purchase order/down payment by the company for purchase of the asset.
The Capital Access Program (CAP) provides a loan loss reserve contribution in an amount up to 5% of the eligible amounts borrowed for new or used (manufactured after 2005) machinery and equipment acquired and placed in service by an eligible business. CAP Awards match lender and borrower contributions of up to 5% for a total reserve of up to 10% on a CAP loan. A lender’s initial $500,000 in CAP loans qualifies for an additional bonus contributed by NIFA to the loan loss reserve.
Availability of Funds
Until June 30, 2013
Amount Initially Available: $1.5 million
Amounts Awarded & Reserved to date: $1,275,917
Remaining Balance: $224,083
The source of funding for this Initiative is solely from resources within the NIFA general fund. No federal or state tax dollars will be expended in the operation of this program.