Innovation Fund Prototype Grants

The Nebraska Innovation Fund (NIF) Prototype Grant is a competitive matching grant program designed to support new product development for businesses operating in Nebraska. The grant is administered by the Nebraska Department of Economic Development (DED) and provides financial assistance to help companies develop prototypes. Because this program is highly competitive, applicants are encouraged to reach out to DED for guidance to ensure they submit strong applications that meet program requirements. Prototype grants offer up to $150,000 per project. To qualify, businesses must provide at least 50% of the grant request as matching funds. However, projects classified as value-added agriculture require only a 25% match. Grant funds are disbursed on a reimbursement basis, with DED covering 66% of project costs, or 80% for value-added agriculture projects. Approved projects must be completed, and all funds must be drawn down within 24 months from approval. Eligible applicants include Nebraska-based corporations, limited liability companies, partnerships, registered limited partnerships, sole proprietorships, business trusts, or other entities engaged in non-retail primary industries that add value to products or processes within Nebraska. Additionally, businesses must have fewer than 500 employees to qualify. Grant funds must be used specifically for prototype development. Eligible costs include employee or contractor wages, prototype materials, and certain preapproved tooling or equipment expenses. Applicants must provide a detailed budget outlining anticipated project costs when submitting their application. Matching funds must come from non-state sources such as private foundations, federal or local government entities, quasi-governmental organizations, commercial lenders, or investors. These funds must be in the form of a cash match and cannot originate from Nebraska state-appropriated funds. Applications are accepted on a rolling basis until funds are exhausted. The current application period opens on June 17, 2024, at 12:00 AM Central Time and closes on June 30, 2025, at 11:55 PM Central Time. Interested applicants should contact the Nebraska Department of Economic Development to check fund availability before applying. For further information, applicants can reach out to Aidan Larsen, Economic Development Consultant, via email at aidan.larsen@nebraska.gov or by phone at 531-510-2888. The Nebraska Department of Economic Development is headquartered at 245 Fallbrook Blvd, Suite 002, Lincoln, NE 68521. Additional inquiries can be directed to their main contact number at 800-426-6505.