|At a glance —There are several small business loans available in Nebraska. One recent initiative is the Paycheck Protection Program (PPP), which aims at giving small businesses a financial boost to make up for what they may have lost over the last year or so. To date, over $3.4 billion has been awarded in Nebraska small business grants through PPP alone. This isn’t the only option, though. We’ll take a look at what else is on offer if you own or run a small business in Nebraska.|
Top Three Nebraska Small Business Loan Options
Rural Enterprise Assistance Project
Given that Nebraska spans over 76,000 miles, it’s no surprise that 35% of the state’s population live and work in rural areas. The Rural Enterprise Assistance Project (REAP) is an option provided by the Center for Rural Affairs (CFRA) geared toward small business owners.
There are three main loan types available: Small Business Loans, Recovery Loans, and Express Loans.
A small business loan is for any amount between $1,000 to $250,000 and can be used as working capital, to purchase inventory or equipment, and for real estate. Recovery Loans go up to $50,000 ($250,000 with blended interest rates) and can be used in a similar way, as well as for small business recovery and growth. Express Loans are for those who’ve already borrowed from CFRA, as well as new borrowers, these loans go up to $15,000.
Paycheck Protection Program
Small business loan requirements in Nebraska vary by providers, with the PPP open to anyone with 500 or fewer employees. The PPP is also part of the Small Business Administration service, which we’ll look at in greater detail later.
As for the PPP, it doesn’t matter if your small business is a veteran organization, nonprofit, Tribal business concerns, sole proprietorship, or if you’re a self-employed individual or independent contractor. As long as you have a workforce of 500 or less, you can apply.
Applications are made through approved lenders in Nebraska and range from First Draw loans (if you haven’t had one before) and Second Draw if you have. There are many conditions involved, but what makes PPP so attractive is that it can be forgivable and has an interest rate of 1%. Also, note that current PPP regulations are set to change so that they’re more equitable.
Bank of Bennington
If you live or work in Douglas, Saunders, or Lancaster, the Bank of Bennington may be able to help you. It offers small business loans with repayments spread out between one and four years.
The Bank of Bennington specializes in loans for agricultural businesses, so it’s another viable option for a good chunk of the state’s population. If you don’t live in one of the three counties mentioned above, you can still apply as long as your business is registered in one of them.
This is also a good option for those who need a loan fast, as applications can be quick (though you’ll likely still need to appear in-branch) and are sometimes awarded the next business day after approval.
Center for Rural Affairs
Small Business, $1,000 to $250,000
Recovery, up to $250,000
Express, up to $15,000
Any small business, for a variety of uses
Small Business Administration, Omaha Branch
Paycheck Protection Program, amounts vary
Any business with 500 or fewer employees
Bank of Bennington
Small Business (specializing in agricultural businesses), amounts vary
Any small business registered in Douglas, Saunders, or Lancaster