Additional Kansas Small Business Financial Resources
When looking for small business financing, it is important to research the state government’s financial aid resources.
Several NetWork Kansas Matching Loan Programs were created to provide matching funds to start-ups and growing businesses based on project needs, geographic location, and matching loan amounts:
- StartUp Kansas. A matching loan of up to $45,000 is available to businesses based in rural and distressed-rural locations.
- Kansas Capital Multiplier. This type of loan is available in all geographic areas and can vary between $25,000 and $250,000. The available finance terms include 1-5 years, with a 4% fixed rate, and 6-10 years, with a 6% fixed rate.
- Women & Minority Business Multiplier. This loan program is intended to support women- and minority-owned businesses. The loan amounts can range between $10,000 and $250,000.
- E-Community Loan Funds. Up to $45,000 are offered to eligible businesses located in an E-Community.
The Kansas Department of Agriculture outlines several opportunities and programs intended to assist Kansas ranchers, farmers, and agricultural businesses. Some of the available programs include:
- Specialty Crop Grower Conference Reimbursement Grant. The grant reimburses the costs of attending an educational conference focused on specialty crops.
- Specialty Crop Block Grant. This grant aims to fund projects that fit into the area related to education, economic development, conservation, or sustainability of specialty crops.
- Organic Cost Share Program. Kansas businesses and farmers that produce, process, or package certified organic agricultural products may receive a 50% reimbursement of their certification costs up to $500 per scope.
The state of Kansas offers several business incentives that are intended to support local small businesses. For example, the High Performance Incentive Program (HPIP) offers tax incentives to employers who commit to teach skill development for their employees and pay above average wages.
Under HPIP, qualified employers can receive a 10% tax credit, which is eligible for capital investment of $50,000 or more at the company’s facility. The maximum amount reaches $1,000,000 in the five counties of Johnson, Douglas, Sedgwick, Wyandotte, and Shawnee.
Other Resources for Kansas Small Businesses
The resources mentioned here are programs that offer coaching and mentoring. There are many programs available to you if you are a young entrepreneur or are in college as a business major.
This university has a small business development center located on its campus. They also offer this resource on their website. The center facilitates small business training and offers webinars that teach you about advertising, taxes, marketing, and research.
This Department of Congress program brings together small businesses that recommend angel investors; it also offers networking opportunities. This is for businesses that are in their early stages of investment.
The KAITC program works under the Kansas Angel Investor Tax Act. According to this Act, an investor is allowed a yearly 50% tax credit on their cash investment of up to $50,000 per business. These “Angel Investors” act as mentors for young entrepreneurs.
The Wichita chapter of SCORE is dedicated to supporting Kansas-based small business owners with over 700 mentoring sessions yearly.
Run by volunteers and seasoned mentors, SCORE is a valuable resource for low-cost small business tools and workshops. Wichita SCORE mentors are highly-qualified, business-savvy entrepreneurs who volunteer to provide free one-on-one support necessary to start or grow a small business in Kansas.
The Kansas SBDC supports Kansas-state businesses of up to 500 employees. The organization provides useful resources for starting or growing an existing business, as well as searching for funding options.
The Kansas SBDC also runs virtual and in-person training sessions, which cover a variety of business-related topics, including marketing, technology, taxes, human resources, accounting, and more.
The Bottom Line
While starting and growing a small business in Kansas requires significant financial commitments, there are plenty of state resources available to make obtaining the financing easier. The requirements for small business loans in Kansas vary from lender to lender and from product to product, so make sure to read the fine print.
For example, Kansas banks often offer attractive interest rates, albeit they come with more stringent qualification criteria. On the other hand, there are online companies that have more streamlined application processes and higher approval rates. As such, it is crucial to consider all your options before deciding which lender to settle with.