The McPherson County Entrepreneurship Community loan program was created through the Kansas Center for Entrepreneurship Tax Credit Program and applied for by the McPherson Chamber of Commerce with designation being awarded in 2011. The McPherson County Entrepreneurship Community loan program was created through the Kansas Center for Entrepreneurship Tax Credit Program and Network Kansas. The program is administered by the McPherson Chamber of Commerce for any businesses located in McPherson County.
The purpose of the E-Community program is to provide low interest loans to entrepreneurs wishing to start, purchase or expand a business in McPherson County. The loans are to be used in partnership with a financial institution and/or a Network Kansas partner as the “final piece” to complete the puzzle or “fill the gap” of financing a business start-up or expansion.
The program underwent a major revision that allows financial institutions to be the 40% loan partner with the E-Community Loan. The minimum loan amount is $5,000 and the maximum is $45,000.
Example:
Capital needed $20,000.00
Bank Loan – 60% $12,000.00 E-Community Loan – 40% $8,000.00
To utilize the maximum 40% available from the E-Community Loan Fund there is a 60% match required from either a bank or a Network Kansas Fund Partner (McPherson Co. Small Business Development, USDA, Main Street, South Central Kansas Economic Development Division (SCKEDD).
Anyone wishing to start, purchase or expand a business in McPherson County
Must be a member of the McPherson Chamber of Commerce and McPherson Main Street
Preference will be given to projects that create quality jobs, increase economic benefits and improve property values and design
Use of Funds:
Purchase of business equipment
Purchase of business inventory
Purchase of real estate
Working capital
Existing inventory
Fees:
$50.00 non-refundable application fee
Repayment:
12 month to 120 month maximum term—length will be determined by amount borrowed
No penalty for early repayment
Other
Minimum loan request is $5,000 with a $45,000 maximum amount available per applicant business.
Funding is subject to interest– rates are structured to match those of acceptable Network Partners (a list is available on the application) rates as of July 2020 is 1% below prime rate.
Complete application & detailed information is available for download here: 2020 E-Community Loan Application or by calling the McPherson Chamber of Commerce at 241-3303 or McPherson Main Street at 241-7430 or any McPherson County financial institution.
The Loan Process
A financial Review Board will use a scoring rubric for all applications made for funds through the E-Community Loan Program.
Scoring Criteria:
Financial Soundness
Owner/Operator Experience
Business Plan
Projected Growth & Economic Impact
Business Development Partnerships
Quality of Life Impact
Owner/3rd Party Funding
Community Commitment
McPherson County E-Community Economic Development Vision Goal
Continue to support the collaborative business environment and provide resources to encourage entrepreneurship and expansion of existing businesses.
Additional Info
Loan funds may not be used for:
Paying off or refinancing existing debt
Salary or owner’s draw
Payroll taxes
Personal vehicles
Businesses That Do Not Qualify:
Non-profit organizations
Academic institutions
Gambling concerns
Floor planning concerns (i.e. wholesale auto inventory financing)
