Why apply for an E-Community loan?
Miami County is in the process of finalizing its loan process and lending criteria. This is expected to be in place by year end.
E-Community loans can be used for startup costs, expansion of an existing business, working capital, inventory and more. The loans are paired with an investment from a local lender along with a personal investment from the business.
- Must be used by a for-profit business
- Must obtain required matching funds
- E-Community funding cannot exceed 60% of the total funding package
How do I apply for a loan?
Entrepreneurs interested in applying for funds will work with a local E-Community Leadership Team to connect with startup and developmental business resources, complete an application for funding, and coordinate the other elements of the funding package (bank loans, etc.). Whether an entrepreneur needs help finishing a business plan or filling out a loan application, the resources offered by the Miami County E-Community team can connect them to resources for assistance.
NetWork Kansas’s Economic Development Administration COVID Relief Revolving Loan Fund provides critical gap financing to small businesses adversely affected by the coronavirus pandemic located in eligible counties in northeast Kansas. This fund is a locally-administered program of the U.S. Department of Commerce Economic Development Administration.
• Location: Based in the counties of Clay, Douglas, Franklin, Jackson, Jefferson, Leavenworth, Lyon, Marshall, Miami, Morris, Nemaha, Osage, Pottawatomie, Shawnee, or Wabaunsee
• Business Stage: Startups and Expansions
• Business Type: For-profits from all sectors, including retail, service, industrial, etc.
• Use of Funds: Flexible use of funds, including real estate, equipment, working capital, etc.
• COVID-19: The small business can demonstrate these funds are needed as a result of COVID-19
• Match Funding: Funds should be used as “gap funding” in partnership with a bank loan or public funding source. Exceptions may be made if applicant has two bank and/or public funding source denial letters, then EDA RLF may be available as sole funding source.
• Down payment: Cash injection (down-payment) may be required; this is not an “equity” loan
Loan Terms and Fees
• Up to $150,000
• Minimum rate is 4%. The range of allowable interest rates may vary.
• Application fee of 2% of the loan request, plus any hard or direct cost for additional services such as mortgage fees/title insurance, and/or credit report.
• Closing fee of $300.00.
• 10-year maximum is generally applied for working capital loans. Loan term may vary or be more flexible depending on the use of funds and assets being financed (ex: longer for real estate).
• Personal guarantees of the owner(s) of the business are required.
• Loans are secured by the best collateral position available and can be subordinated.
The application is available here.
Miami County has created a Microloan Fund in partnership with the Justine Peterson Group These loans are available for real or personal property purchase, renovation projects and inventory expansion. Start-up businesses and expanding businesses are eligible. For more information about these programs please call the Economic Development Office at (913) 294-4045.
- Kansas Department of Commerce, Programs and Services - - The Business Finance Unit of the Kansas Department of Commerce offers a variety of programs including job creation tax credits, investment tax credits, sales tax project exemptions, and revolving loans for local infrastructure.
- USDA, Renewable Energy
- Enterprise Center of Johnson County
- Justine Petersen
- Network Kansas
- One KC for Women
- Small Business Administration
- Property Tax Abatement Assistance - Assistance is provided to businesses and governmental entities applying for property tax abatement. Division staff liaisons with the Board of Tax Appeals (BOTA) provide technical assistance on the application process, and run a complimentary cost benefit analysis to ensure a BOTA response within 30 days.
- Private Activity Bonds - Qualified Private Activity Bonds (PABs) are federally tax-exempt bonds.