Shovel-Ready Capital Recovery and Investment Act

The purpose of the Shovel-Ready Capital Recovery and Investment Act (“Act”) is to assist qualified nonprofit organizations with capital projects that have been delayed due to COVID-19 by providing grants to said organizations.

Beginning July 1, 2021, through July 15, 2021, a qualified nonprofit organization may apply to the Department of Economic Development (“Department”) for a grant.

Application Requirements

Any application for a grant under this Act must include:

  • a description of the qualified nonprofit organization’s capital project,
  • the estimated cost of the capital project,
  • the date when the capital project was delayed due to COVID-19 and the date when the capital project is expected to begin or resume, and
  • the amount of funds for the capital project which have been received or will be received from private donors. The names of the donors do not need to be disclosed.

An online application form will be created for this grant and information on how to access said application will be provided on the Department’s website when it is available.

Amount of Funding Available and Application Approval

The Department will consider applications in the order in which they are received. It is the intent of the legislature to allocate $15 million from the General Fund and an additional amount of federal funds allocated to the states pursuant to the American Rescue Plan Act of 2021 up to the amount needed to fully fund all approved grants.

Amount of Grant

The Department may approve applications within the limits of available funding. The amount of the grant approved shall be equal to the amount of funds to be supplied by the nonprofit from private sources subject to the following limitations in the chart below:

Estimated Cost of the Capital Project

Grant Limit

Less than $5 million $1.5 million
Between at least $5 million and $25 million $5 million
Between at least $25 million and $50 million $10 million
$50 million or more $50 million

 

Requirements After the Grant is Received

If a nonprofit fails to meet the following requirements after receiving a grant, said organization must repay any grant received:

  • secure all funds which will be provided for the project by private sources through written pledge by December 31, 2021,
  • begin or resume construction on the project by June 30, 2022, and
  • abide by the federal Davis-Bacon and Related Acts.

See:

Nebraska Department of Economic Development Resources Page

 

A printable version of this information can be found by clicking HERE.

 

Author: Mark Brasee

Mark L. Brasee

Mark L. Brasee

Partner

(402) 978-5306
mbrasee@fraserstryker.com

This article has been prepared for general information purposes and (1) does not create or constitute an attorney-client relationship, (2) is not intended as a solicitation, (3) is not intended to convey or constitute legal advice, and (4) is not a substitute for obtaining legal advice from a qualified attorney. Always seek professional counsel prior to taking action.