CREATING JOBS & ECONOMIC DEVELOPMENT IN RURAL COMMUNITIES

Because I was born and raised in the small town of McCook, Nebraska, I have never forgotten my roots. I understand the plight of rural America - the struggle for economic development and providing opportunities for young people so they don’t have to move away to earn a living.

The population in Nebraska's urban areas continues to rise steadily as it has for many years while the number of people living in rural areas has declined. Figures from the U.S. Census Bureau show that from 1940 to 2000 the population of rural areas in Nebraska fell from 800,000 to about 500,000.

During a field hearing of the Senate Agriculture Committee awhile back, witnesses told us time and time again that something needs to be done to improve the economic climate in rural America before it's too late. That is why I fought hard to include new rural microenterprise funding in the farm bill which is now law, despite the President's veto.

Entrepreneur Program Based on the Nebraska Model
This innovative provision is designed to help rural entrepreneurs and small businesses get started and stay in business. It is based on the Nebraska Micro-enterprise Partnership Fund which was created in 1997 while I was still Governor.

The Partnership Fund has been very successful in both creating new jobs and retaining existing ones in rural areas. It has provided nearly 4500 loans, totaling $6.9 million, to Nebraska small businesses. It has also provided training and technical assistance to 15,000 businesses over the last ten years.

A Job Builder
The Center for Rural Affairs estimated that in 2006 the program helped create or save 7,500 jobs at a cost of just $330 per job.

This program has also allowed entrepreneurs to leverage state funding with money from other sources. In the fiscal year ending in June 2006, using $447,750 state dollars, micro programs leveraged an additional $5.6 million. To put it simply, for every $1 of state funds, more than $12 was leveraged from other sources.

Training Technical Assistance and Loans
The provision creates a Rural Entrepreneur and Micro-enterprise Assistance program at the U.S. Department of Agriculture. It provides $15 million in mandatory funding over a four year period. Four million dollars will be set aside for each of the first three years and three million dollars will be available for the fourth year. Funds can be used for both lending and technical assistance.

The Backbone of Rural America
This legislation will help existing businesses and encourage the creation of new businesses. It is based on the premise that these smaller businesses are the backbone of our rural economy. The continued success of these stores, restaurants and service providers is essential to ensuring that rural communities survive, which is essential to the future of Nebraska.

###



	Column	August 29, 2008
CREATING JOBS & ECONOMIC DEVELOPMENT IN RURAL COMMUNITIES Because I was born and raised in the small town of McCook, Nebraska, I have never forgotten my roots. I understand the plight of rural America - the struggle for economic development and providing opportunities for young people so they don’t have to move away to earn a living. The population in Nebraska's urban areas continues to rise steadily as it has for many years while the number of people living in rural areas has declined. Figures from the U.S. Census Bureau show that from 1940 to 2000 the population of rural areas in Nebraska fell from 800,000 to about 500,000. During a field hearing of the Senate Agriculture Committee awhile back, witnesses told us time and time again that something needs to be done to improve the economic climate in rural America before it's too late. That is why I fought hard to include new rural microenterprise funding in the farm bill which is now law, despite the President's veto. Entrepreneur Program Based on the Nebraska Model This innovative provision is designed to help rural entrepreneurs and small businesses get started and stay in business. It is based on the Nebraska Micro-enterprise Partnership Fund which was created in 1997 while I was still Governor. The Partnership Fund has been very successful in both creating new jobs and retaining existing ones in rural areas. It has provided nearly 4500 loans, totaling $6.9 million, to Nebraska small businesses. It has also provided training and technical assistance to 15,000 businesses over the last ten years. A Job Builder The Center for Rural Affairs estimated that in 2006 the program helped create or save 7,500 jobs at a cost of just $330 per job. This program has also allowed entrepreneurs to leverage state funding with money from other sources. In the fiscal year ending in June 2006, using $447,750 state dollars, micro programs leveraged an additional $5.6 million. To put it simply, for every $1 of state funds, more than $12 was leveraged from other sources. Training Technical Assistance and Loans The provision creates a Rural Entrepreneur and Micro-enterprise Assistance program at the U.S. Department of Agriculture. It provides $15 million in mandatory funding over a four year period. Four million dollars will be set aside for each of the first three years and three million dollars will be available for the fourth year. Funds can be used for both lending and technical assistance. The Backbone of Rural America This legislation will help existing businesses and encourage the creation of new businesses. It is based on the premise that these smaller businesses are the backbone of our rural economy. The continued success of these stores, restaurants and service providers is essential to ensuring that rural communities survive, which is essential to the future of Nebraska. ###