LINCOLN, NEB. (September 22, 2005)--Governor Dave Heineman today awarded $130,000 in Community Development Block Grant (CDBG) funding to the cities of Seward, O'Neill and Gering on behalf of the Rural Enterprise Assistance Project (REAP), which offers programs and services in each city and surrounding area.

Of the amount, $125,000 will be earmarked for the REAP Peer, REAP Women's Business Center, and REAP Hispanic-Rural Business Center programs to provide a limited clientele with technical assistance and support; business development services to new and existing program participants in the region; peer to peer and direct business loans; and employment services. The remaining $5,000 will be divided among the cities to cover administrative expenses.

During its two-year contract, REAP also will research, develop and pilot an online lending mechanism, and ultimately implement the service during the second year. Applicants qualifying for REAP programs and services include support businesses and cooperatives that expand the state's economic base and create jobs for low- and moderate-income persons by providing them with technical assistance and training, and business support, microenterprise owners, and people developing microenterprises.

REAP assists 46 local associations throughout Nebraska that cater to the business needs of small start-up and established businesses, home-based and storefront businesses, full- and part-time employers, and farm- and town-based businesses. The Project provides "peer group" loans up to $15,000, and individual loans up to $25,000.

Statewide business expansion and support is an ongoing mission of the Nebraska Department of Economic Development. The department administers federal funds made available to Nebraska communities from the U.S. Department of Housing and Urban Development's CDBG program.

FOR INFORMATION, CONTACT:

Bob Doty at 800-426-6505, 402-471-2095,
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