NE: Gov. Heineman Awards $508,000 in CDBG Funding for Business Improvement Project in Laurel
21 Sep, 2010
Gov. Dave Heineman today awarded $508,000 in Community Development Block Grant (CDBG) funding to the city of Laurel to assist a start-up local company with infrastructure improvements. Laurel BioComposite, LLC, a producer of bioplastic enhancer, will create 20 new full-time positions as part of the project.
“Nebraska’s biotechnology industry is growing and I’m pleased to congratulate everyone involved in this new start-up company,” Gov. Heineman said. “Creating new jobs opportunities in this and other growth-oriented industries is important for Nebraska’s economic development.”
The city will loan $150,000 in CDBG funding to the company for working capital, with $350,000 used to finance infrastructure improvements at two sites, including construction of paving, sanitary and storm sewers, and water mains. The project includes a $14 million facility used to turn distillers’ grain into plastic. The remaining portion of CDBG funds will be available to administer the grant.
In addition to CDBG funding, the city of Laurel will provide $340,000, and Laurel BioComposite will provide more than $18.3 million to help complete the project, for a total investment of more than $19 million.
Administered by the Nebraska Department of Economic Development, federal CDBG funds are made available to the state from the U.S. Department of Housing and Urban Development.