2005 NEWS AND INFORMATION

New Funding to Support Work with Microenterprises 

Governor Dave Heineman has awarded $447,750 to 12 microenterprise programs across the state.  The programs use these funds to assist in covering operating costs associated with providing lending, pre- and post-loan technical assistance, and training for self-employed businesses (five or fewer employees) across Nebraska.  

These funds are a result of the passage of the Nebraska Microenterprise Development Act in 1997.  The Department of Economic Development contracts with the Nebraska Microenterprise Partnership Fund (NMPF) to administer the grants to programs.  In addition to the grant funds, NMPF raises loan capital that programs may use in making loans to businesses. 

Micro program fund recipients will be matching the $447,750 with more than $2.3 million of public and private funds (not including other state funds).  This two-tiered matching results in the state dollars being multiplied several times.   

Businesses needing loan capital, training and/or technical assistance are encouraged to contact the following grant recipients: 

·                    Catholic Charities/Juan Diego Center, South Omaha – Contact: Karen Mavropoulos, 402-731-5413

·                    Center for Rural Affairs/REAP, rural statewide – Jeff Reynolds, 402-656-3091

·                    Community Development Resources, Lincoln, Lancaster County – Rick Wallace, 402-436-2386

·                    Destination Midtown-Omaha, Douglas County – Tawanna Black, 402-233-7142

·                    GROW Nebraska, statewide – Janell Anderson Ehrke, 800-476-9632

·                    Hastings Economic Development Corporation, Adams County – Randy Chick, 402-461-8415

·                    Lincoln Action Program, Lancaster and Saunders Counties – Cory Smathers, 402-471-4515

·                    Nebraska EDGE, statewide – Marilyn Schlake, 800-328-2851

·                    New Community Development Corporation, Douglas and Sarpy Counties – Tamara Westbrook, 402-451-2939

·                    Northeast Economic Development, 25 counties in northeast Nebraska – Jeff Christensen, 402-649-7223

·                    Vocational Rehabilitation Equity Assistance Program-VREAP, statewide – Jim Coyle 877-637-3422

·                    West Central Nebraska Development District, 18 counties in southwest Nebraska – Martin O’Haus, 308-284-6077

For more information contact Rose Jaspersen, Nebraska Microenterprise Partnership Fund at rosej@nebbiz.org.

REAP Receives National Award 
The Center for Rural Affairs Rural Enterprise Assistance Project has been awarded the First Place $2,500 award in the Women and Company Microenterprise Boost Program Excellence in Microenterprise Work with Women awards.  Second Place went to First Step Fund of Kansas City and Third Place to Women’s Rural Entrepreneurial Network.  The “Excellence” awards recognize Local Partners for their exceptional work and success with the Women and Company MBP and for the first rate services they provide to their women microenterprise clients. 

Senator Mick Mines Recognized at NEON Annual Conference
NEON has awarded special recognition to Senator Mick Mines, District 18, and his staff , William Marienau and Stephanie Cude, for the work they accomplished for microenterprises across the state in the 2005 Legislative session. 

NEON made a decision in the 2004 to pursue a change in the language of the original 1997 Microenterprise Development Act to increase the loan limit to $35,000 from the then $25,000 lid.  This decision was based both on demand for loan funds by growing micro businesses and national trends. 

When approached to assist in this matter, Senator Mines immediately related to the role of micro businesses in Nebraska’s economy and agreed to lead the effort to increase the loan limit to $35,000.  As Chairman of the Banking, Commerce and Insurance Committee, Senator Mines presented the case for this amendment and brought other committee members onboard.  The result was unanimous agreement to forward the bill to the full Legislature and eventual approval by the full body.

Senator Mines work not only increased the loan limit, but gave increased visibility to micro program work in Nebraska.  Later in the session another bill was passed to reestablish funding for micro programs at the $500,000 level for the next two years.

NEON looks forward to working with the Senator in the future on issues that relate to micro businesses and programs.

Policy Academy Planning Continues
The recent NEON Annual Conference provided an opportunity to continue discussion and planning for a policy academy on the topic of a self-employed tax credit.  This combined effort of NEON and the Nebraska Microenterprise Partnership Fund (NMPF) is focused on using Schedule C tax filing as a means to assist businesses in entering the formal economy. 

Rose Jaspersen presented recent research by Gene Severens on the overlap between users of the Earned Income Tax Credit (EITC) and self-employed individuals filing Schedule C.  In Nebraska 121,342 self-employed filed Schedule C in 2003.  There were 110,383 recipients of EITC.  The overlap between these two groups was 22,400 people who filed Schedule C and also received EITC benefits.  In addition there were an estimated 40,700 self-employed businesses that did not file Schedule C. 

In looking at this research there are possible roles for microenterprise development organizations (MDO’s) to play in the future.  MDO’s could provide assistance to informal businesses in filing taxes and connect them to the EITC and then a self-employed tax credit later.  As part of this assistance, MDO’s could offer tax literacy training. 

An interesting observation from the above research is that the tax code is being utilized far more than MDO’s in reaching micro businesses.  This is an overall gain for improving incomes of individuals and adding jobs and stability to communities.  As a result of this net gain, MDO’s could also work to develop a tax check-off to provide all tax filers in Nebraska the opportunity to support MDO work.

As part of the discussion at the NEON Annual Conference, Jeff Christensen put out a call for individuals to join the research and design of these concepts.  Anyone interested in working on a committee to develop these cutting edge concepts should contact Jeff at jeff@nenedd.org or Rose at rosej@nebbiz.org.

NMPF Moves to a New Location
The Nebraska Microenterprise Partnership Fund (NMPF) has moved its office to Oakland, Nebraska’s main street.  Rose Jaspersen stated, “The new location gives us additional space and privacy.”  NMPF invites you to stop by and visit at 223 N. Oakland Ave., Oakland, NE  68045.  The new phone numbers are PH 402-685-5500 and FAX 402-685-5550.