City Of Kimball Incentives: We Are Here To Help You!

You may have seen a tease a couple weeks ago about some exciting changes to existing incentives as well as some new incentives the City of Kimball has to offer.

Over the next couple months, I will be submitting articles to educate local businesses, businesses who are looking to relocate, and entrepreneurs who are wanting to turn their hobby or idea into a business. Our hopes are that the loans and grants that are available for businesses will encourage YOU, business owners and tax payers, to utilize the funds that YOU and the citizens have put into the account.

This week I will give you an overview of how the fund was created and provide you information on our one and only LOAN program. In the following weeks I will go into detail about the GRANTS that are available as well as all the resources we have on a regional level for businesses.

The “funds” that the City of Kimball Economic Development Department has available was derived from a special election in which the voters approved the local option sales tax referendum in 1998 and then again approved in 2007. What this meant was that the City of Kimball would collect a ½ cent sales tax collection that would sit in its own account and would be used to stimulate economic development in our community. The LB840 Program referred to as “The Program” can be used in a variety of ways. I will share a quick summary of the general intent and goals as well as eligible businesses who can use the funds.

The general intent of the program is to establish a sustainable and diversified economy for the citizens of Kimball. This is accomplished through retention of existing businesses; assisting in local business growth; stimulating new construction; aiding in the development of new industrial and commercial building sites; assisting local tourism efforts; and supporting Community Development projects that enhance the quality of living.

The program may include but not be limited to, the following activities:

Low interest loans, forgivable loans, grants, commercial real estate improvement or demolition, performance-based loans/grants will be made to qualifying businesses or organizations. These businesses shall: create jobs at above the regional average pay scale; retain existing jobs; provide expansion/retention funds; or contribute to the sales tax base; or contribute to the property tax base; provide essential products/services; or possess other merits not previously mentioned.

Grants or loans for: community infrastructure; or public works improvements to business benefactors; and/or purchase of fixed assets, i.e. real estate and real estate options that are essential to the location or expansion of a qualifying business. Equity investments may or may not have specific performance requirements such as job creation and shall be secured by Mortgage, Deed of Trust, Promissory Note, personal and/or corporate guarantees or other financial instruments as requested by the loan fund committee.

The provision of technical assistance to businesses such as: preparation of financial packages; surveys; engineering or infrastructure studies; legal costs; architectural services; relocation costs; start-up expenses; feasibility studies; or any other similar or necessary assistance.

The authority to issue bonds pursuant to the Act and/or as provided by any other applicable statutes or laws.

Grants, assistance, or agreements for job training.

Payments for: salaries, support staff costs, or contracting with an outside entity for Economic Development management and direction.

Commercial/industrial recruitment and promotional activities.

Grants or loans for the construction or rehabilitation for sale or lease of housing as part of a Workforce Housing Plan, as provided for below. *Ord. 749, 8/15/2017

Purchase of real estate, real estate options and the renewal or extension of such options.

Direct loans or grants for any typical business expenses including but not limited to: fixed assets, fees, studies, working capital, required infrastructure or utility connections.

Tourism related activities.

Local or Regional recruitment activities.

The LB840 Loan application can be found at http://www.kimballne.org/index/businessesresources/index.php or you can swing by the city to pick up an application. The Loan program that we have to offer is for qualifying businesses located in the zoning jurisdiction of the City of Kimball until the City Council grants a variance for special circumstances. Our loan has an interest rate of 4% and the term shall not exceed ten (10) years for loans used for capital assets and five (5) years for loans involving any other category.

In 2017, City Council passed a Loan Forgiveness program in which anyone who takes out an LB840 loan is subject to a 15% loan forgiveness on their account if they have reached their goals stated in their loan as well as repaid loan on time and consistently through out the loan. What this means is if you took a $100,000 loan out through our program and you met the above stated requirements, when your account is close to the $15,000 principal remaining, your remaining balance can be written off. This is a similar program that is used in various communities in Nebraska where they are rewarded for job creation.

If you review the application and need assistance with any of the line items required, we have amazing resources at REAP and NBDC that can provide business consulting at no cost to help with business plans and financials. Once you have all the items required, the process is extremely painless. Your application will be reviewed by two members of our board to make sure all requirements are met. If they have questions, I will contact you for further information. If there are no questions you will attend our next Loan Advisory meeting for their approval. At that time, we will iron out the details of your loan and set a date where you can come in and sign all the necessary paperwork as well as pick up your check. The entire process takes less than a month if all documentation is provided and accurate.

Next week, I will be sharing information on our Business Façade Improvement Grant and some exciting new eligible activities as well as some changes in our match funds that will help our businesses make necessary repairs to the outsides of their buildings as well as items that can help them market their business better online and in person.