Today, the Nebraska Department of Economic Development (DED) announced a bridge payment option to the Shovel-Ready Capital Recovery & Investment Act Program (Shovel-Ready). The option is being added to the program’s payment structure to respond to the cash flow needs of non-profit organizations with multi-year construction projects.
Beginning October 2, 2023, beneficiaries of the first round of Shovel-Ready funding may request a contract amendment for a bridge payment. Once a contract amendment is fully executed, organizations may submit a bridge payment request for 25% of their award amount one year after their initial advance payment was disbursed by DED. The bridge payment will serve as a second advance payment and any remaining grant funds will be paid out as a reimbursement upon demonstrated completion of the capital project.
DED will require capital project expense and progress documentation at the time of the bridge payment request. The nonprofit organization must be in full compliance with all quarterly reporting and other program requirements prior to approval of the bridge payment. Beneficiaries of the first round of Shovel-Ready funding interested in receiving a bridge payment should request a contract amendment by email at DED.ShovelReady@Nebraska.gov. The option to request a bridge payment will be included in the contracts to beneficiaries of second round Shovel-Ready funding and will not require an amendment. If a beneficiary of the first round of Shovel-Ready funding chooses not to opt for a bridge payment, the terms of their original contract will remain unchanged, and they will request their remaining grant funds as a reimbursement after demonstrated completion of their approved capital project.