Business Incentives
Funding for any business need
Ord and Valley County have several financing options that partner well with state economic development incentives for many of your business needs. Financial incentives for Valley County businesses are available through several programs that include the City Sales Tax for Economic Development, the Loup Valley Investment Club and Tax Increment Financing to name a few. An outline of local incentives can be found below. The incentives brochure can be viewed here.
Local Sales Tax Fund for Economic Development
The Local Option Municipal Economic Development Act (LB 840) was approved by Ord voters in 2001 and overwhelmingly renewed in 2016 to create a sales tax program for economic development, a financing tool to fund existing business needs, the development of new business start-ups and economic development site improvements.
City of Ord, Nebraska Economic Development Program
One major program feature includes a low-interest loan program for business lending throughout Valley County. To date, over $6.8 million has been loaned to 71 local businesses throughout Valley County, leveraging over $20.5 million in development. If you’d like to apply for loan funds, please see the program guidelines and application checklist below. Contact the Valley County Economic Development office at (308) 728-7875 for additional forms needed for your LB840 funds request.
Valley County Downtown & Periphery Area Improvement Rebate Program
Limited Funds Available (call 308-728-7875 before applying): Businesses in the downtown business districts of Ord, Arcadia, North Loup and Elyria are eligible for this dollar-for-dollar rebate program. Reimbursements of up to $10,000 per project are available while funds last.
Valley County Downtown & Periphery Area Improvement Rebate Program
Loup Valley Investment Club, LLC
The Loup Valley Investment Club is a Nebraska Limited Liability Company created for the purpose of assisting the community with development projects. Members of the investment club invest their personal funds into the treasury of the company on a monthly basis in order to fund operations and pursue company objectives. This organization has an objective of assisting with community wide economic development by pursuing business start-up, expansion, and development. To do so, members of the LLC screen requests from entrepreneurs and potential new businesses in order to make an informed business decision concerning funding of the requests. Projects that are approved by investment club members then receive funding from the Investment Club in the form of an “investment” rather than as a loan. Past projects include the construction of a 10,000 square foot spec building and a housing development. For more information contact Joe Wadas at (308) 750-0426.
Tax Increment Financing (TIF)
The City of Ord has the ability to use Tax Increment Financing to assist a new or expanding business. For more information, contact Valley County Economic Development at (308) 728-7875 for details on our community redevelopment areas. In 2017-2018, private sponsors of Valley County Economic Development provided financial support in collaboration with the Nebraska Economic Developers Association and rural communities across Nebraska to fund a study by Goss & Associates Economic Solutions, which analyze analyzing the economic impact of Tax Increment Financing in Rural Nebraska. The report, titled “Tax Increment Financing: Contributions to Economic Growth in Rural Nebraska” reveals the significant positive economic impact TIF projects have and will continue to have in Valley County and throughout Nebraska.
Loup Valleys Rural Public Power Revolving Loan Fund
Loup Valleys Rural Public Power District was awarded a $300,000 grant from the United States Department of Agriculture’s “Rural Economic Development Loan and Grant Program” in 2010. The grant, along with a 20% match from Loup Valleys, was used to start a revolving loan fund to serve as seed money to generate economic development in Sherman, Garfield, Wheeler, Greeley, Valley and part of Custer Counties. The first loan had to go to a non-profit organization, which was Valley County and helped to finance their enhancement, safety and renovation project.
As Valley County repays the loan (over 10 years), Loup Valleys has accumulated funds that can be loaned again to a qualifying new business or existing business expansion. Loup Valleys’ loan review committee will consider future applications for loans that will significantly benefit rural areas, with the goal of increasing employment in the area. There is an established Revolving Loan Fund Plan that will be the guide to selecting applicants. This is a loan, not a grant and will not be the total financing for any project but will be supplemental with traditional forms of financing. The District has significant funds available to loan at this time. If you or someone you know is considering starting a new business or expanding an existing business that will create at least one new full-time job, why not look at applying for a loan through Loup Valleys’ Revolving Loan Fund. Interested parties seeking financing should contact Ron Sandoz at Loup Valleys Rural Public Power District at (308) 728-3633.
Microenterprise Tax Credit
The Nebraska Advantage Microenterprise Tax Credit Act (Act) provides a refundable individual income tax credit to individual applicants who are actively involved in operating a microbusiness based on demonstrated growth of the business over two years. An individual must submit a Nebraska Advantage Microenterprise Tax Credit Application (application) to reserve credits. The Act allows the Nebraska Department of Revenue (Department) to authorize tax credits in the amount of $2 million each calendar year, plus any unclaimed credits carried forward from the prior year. The applicant may earn a credit equal to 20% of the increase in new investment or new employment at the microbusiness in the year of application and the year after application. The total lifetime tax credits claimed by any single applicant and any related persons are limited to $10,000.
Rural Enterprise Assistance Project (Reap)
Call on REAP when you are thinking of starting a small business or if you already operate a small business in Nebraska. You can find your nearest REAP business specialist here. Through REAP you can create a business plan, research potential markets and marketing ideas, discuss management issues with experienced business specialists, and apply for a small business loan.
Started in 1990, REAP has provided services to numerous micro/small businesses throughout Nebraska. (A micro business is defined as one with 10 or fewer employees.) We’ve placed over $16 million in loans and leveraged over $23 million in additional funds from other sources.
Nebraska Advantage
We think Nebraska is incentive enough, but let’s sweeten the pot. The Nebraska Advantage Package is Nebraska’s comprehensive economic development incentive. Whether you’re expanding or relocating your business, you won’t want to skip this step. Nebraska’s comprehensive economic development incentive package meets the needs of expanding or relocating businesses.