A Competitive Advantage Assessment and Strategy for Nebraska (The Financial Service Cluster) Case Solution
The focus area:
The area in financial services cluster is selected as â€œThe community Block Grant (CDBG)â€. It provides safe and accessible infrastructure, housing, and helps to increase the quality jobs through investment in new financing projects and business expansions. This area of financing services covers the Housing and community development Act of 1974; this area has been merged in five programs that attract the pool of funding yearly based on the weight formula of demographics that include age, income, house crowding, and growth delay. The five programs include (1) CDBG (2) HOME (2) ESPG, (3) HSATF, and (5) Housing trust fund.
The CDBG provides the action plan for funded activities and provides eligibility to meet three important initiatives or objectives, which include:
- to advance the industry clusters,
- to promote the growth and use of Nebraskaâ€™s talent base;
- to ensure that the Nebraska would be the able to use research and developlment efficiently in order to develop new and innovative products and services.
Action Plan of CDBG:
The action plan under housing and community provides the five-year plan to address and fulfill the housing and development needs. The main purpose of each plan is to emphasize the five strategies for housing, homelessness, and development of community and economy. According to Nebraska, five priorities and strategies consist of:
- It defines the Nebraska state efforts for implementing the strategies of consolidated plan
- To make sure that five programs mentioned in focus area must meet the five-years consolidated program.
- Hire the personnel and explain them about the strategies
- Provide the affordable housing by specifying the items as per US government, such as lead-based paint action plans long with the removal of barriers in case of Housing and Urban development (HUD).
- Provide the feedback from citizens regarding action plan of CBDG, and give timely response for the development of the economy.
Types of CDBG:
It provides planning with respect to public facilities, wastewater assistance, development initiative, and housing. It will lead to economic development, renewal, investment, and stabilization.
Objective to meet through CDBG:
- It helps to benefits low and moderate income individuals
- It aids in prevention in the form of tax increment finance.
- Development of historic, cultural, heritage and other supporting activities by developing sites and facilities.
The maximum grant amount is $ 30,000 before the development phase and $ 350,000 during the project phase, which includes the final design and the construction components.
Economic development through financial cluster:
The CDBG provide loans to business and provide funding for infrastructure to different communities. Typically, it provides from $ 250,000 to $ 500,000 per funding grant. It provides benefits in the form of an increase in job opportunities from low to moderate income people, and it meets the demands of qualified business in Nebraska with the wage of $ 9 per hour. Along with this, it provides various advantages, such as it improves research and development, manufactures the data processing, insurance, financial services, distribution, and also targeted export services. As per 2013, the funding in CDBG program was $ 1.9 million.
Financial assistance upfront:
Based on the case recommendation, at this current stage, Nebraska does not mention with space and they currently want to take the advantage by accessing the Nebraska performance based incentive. Therefore, in the state of recruitment, the financial service cluster is considered as an important component to meet the economic objective and developing the community. It is observed that the neighboring state that led to the creation of 579 jobs and retained a total of 34,000 jobs since 2003 for a variety of projects such as wells Fargo, IBM, Green Plains, etc. through the development of financial assistance program……………….
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