SHABRI founder and CEO Rakesh Srivastava (pictured right)
The City of Hastings has been awarded a $139,800 Community Development Block Grant (CDBG) from the Nebraska Department of Economic Development (DED) to support the job-creating expansion of a local business.
CDBG funds of $139,800 will be combined with $65,200 from the City’s CDBG program income to invest a total of $200,000 in SHABRI, LLC. The funds will support the business’ expansion. The remaining $5,000 in CDBG funds will be reserved for the City’s administrative expenses.
SHABRI is the manufacturing subsidiary arm of Innovative Prosthetics & Orthotics — a company that designs and manufactures medical devices and treatment options for patients with limb, spinal and other injuries. The company operates in three locations including Hastings, Grand Island and Omaha. SHABRI intends to expand in Hastings with a new manufacturing facility, where it will produce 3-D printed devices. Innovative Prosthetics & Orthotics will subsequently relocate to the expanded facility.
The planned expansion, which involves the purchase and repurposing of a former restaurant, will generate over 5,500 square feet of new manufacturing and clinical space, while creating at least six new jobs.
With support from the South Central Economic Development District (SCEDD), the City of Hastings applied last fall for CDBG funding to assist SHABRI, and was recently notified by of its grant approval. Administered by DED on behalf of Nebraska, CDBG is a federal resource provided to states for use on a wide variety of community and economic development projects. As a condition of receiving CDBG funds, supported projects must directly benefit low-to moderate-income persons. SHABRI was eligible to receive CDBG assistance due to the resulting economic benefits for Hastings, as well as its commitment to create at least six new jobs — 51% or more of which will benefit low-to-moderate-income persons.
“The CDBG program is an outstanding community and economic development resource that, time and again, has been leveraged to make meaningful impacts in our Nebraska communities,” said DED Director Dave Rippe. “We applaud the community of Hastings for its commitment to local business development, and congratulate SHABRI, LLC on its continued success and growth.”
The CDBG funding will subsequently be passed through to HEDC — the local nonprofit development organization — which will distribute it to SHABRI in the form of a loan, half of which will be forgivable once the company meets its low-to-moderate income employment objective. The loan will be used to help cover SHABRI’s expansion-related equipment costs.
“The Community Development Block Grant program has made a tremendous impact in the city of Hastings, contributing to a variety of community and economic development projects which would have been more difficult to accomplish without its added financial support,” said Hastings Mayor Corey Stutte. “We are pleased to be able to assist SHABRI as they continue to expand and create jobs that will benefit Hastings residents, and wish them success in their future endeavors.”
SHABRI’s relocation and hiring of new employees is projected to be complete by December of next year.
“Our appreciation goes out to the City of Hastings, HEDC, SCEDD, the Nebraska Department of Economic Development and the CDBG program for assisting our expansion within the Hastings business community,” said SHABRI founder and CEO Rakesh Srivastava. “Our goal is to make Hastings, Nebraska a 3D-printed hub for the manufacture of prosthetic and orthotic devices, providing a low-cost solution to serve and help thousands of individuals within the United States and globally. With our new facility and equipment, we will be able to strive toward this level of service. Our local partners have helped make our goals achievable with their guidance and support.”
More information on the CDBG program, including how to apply, can be found on the DED website at www.opportunity.nebraska.gov/cdbg.