Funding for Nebraska’s Business Innovation Act has been reinstated, and it could be boosted by 25% next fiscal year.
Gov. Jim Pillen on Monday announced that the state will resume funding for the initiative, which has provided money for both established and startup businesses since it was first enacted in 2011.
Pillen had put funding on hold in the fourth quarter of this year after the state spent only $7.5 million of $12 million that’s appropriated, a move that had left some businesses in limbo.
“The BIA is an important source of funding for startups and business innovation in Nebraska,” Pillen said in a news release. “But to run government like a business, it’s important to continually assess the performance of any government program to ensure it is making good use of taxpayer dollars. We did so, and the result is that we are going to significantly enhance and strengthen this program.”
Pillen said he will request that the Legislature increase its appropriations for the programs to $15 million for the 2026-2027 fiscal year, a 25% increase over the current appropriation. But he also asked that future funding be less reliant on general fund dollars.
It’s not clear how that can be achieved, but Pillen did say that he wants the Department of Economic Development to strengthen public-private partnerships like the one with Invest Nebraska, which partners with the Nebraska Department of Economic Development to manage the Nebraska Seed Investment Fund.
Research has shown that the BIA program is successful at boosting business and creating jobs. A study released earlier this year found that every $1 of BIA funds awarded has generated $11.52 in private capital investment. The study also found that businesses receiving the funds have an annual economic impact on the state of nearly $1.2 billion and generate $27 million in state and local taxes.
Heath Mello, president & CEO of the Greater Omaha Chamber, said he was grateful to the governor for seeking to increase funding for the program.
“The BIA has long been one of Nebraska’s most effective tools for driving innovation, entrepreneurship, and high-wage job creation,” Mello said in the news release. “Nebraska has seen an incredible ROI with this program and this expanded commitment will only accelerate that impact.”