LB840      

The Fairbury LB 840 plan operates as follows.  All the money from the half percent sales tax for LB 840 must go into a special account at the bank.  No other monies can be placed into this account except pay back from LB 840 loans.  Our plan allows up to $185,000 to be placed into this account per year.  Excess tax money must go into the city's General Fund.  At least half of the collected tax money over a five-year period must be directed to economic development or the LB 840 tax collection plan will be terminated by statute. Our ED plan is in effect for 20 years however.  In cities with a population of 2,500 to 10,000 a retail business will qualify for LB 840 loans or grants but no more than 40% in any 12-month period, nor more than 20% in any five-year period, of program funds shall be used for retail trade businesses.  LB 840 loans or grants to a business that is fully able to receive a bank loan should not necessarily be the main use of a LB840 low interest loan or grant as this would make it in direct competition with local banks.  Fairbury uses LB840 money to finance economic development of existing local business expansions as well new startup businesses.

Please contact Jefferson County Economic Development Corporation for more information on

the City of Fairbury LB840 program.

402-729-4061