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Kansas Small Business Loans: Best Local and Online Options
Starting and growing your own business in the state of Kansas requires significant investments - in terms of time, effort, and finances. The good news is that the state offers plenty of funding opportunities from traditional and alternative lenders alike.
Out of all the businesses in the state of Kansas, about 97% are considered to be small businesses. Out of the 50,000 plus companies, 49,000 have around 100 or fewer employees, which means they fall into the small business category. The average loan amount is around $13,000 to over $1.2 million, but this number can vary depending on the plan and the loan provider you select.
Best Kansas Small Business Loans
In this section, we discuss, in detail, the best three loan options for small businesses in Kansas.
First Bank Kansas
Founded in 1961, First Bank Kansas is now recognized as a regional community bank with locations in six Kansas cities: Saline, Ellsworth, Abilene, Lindsborg, Hutchinson, and McPherson.
First Bank Kansas offers a range of small business loans with a variety of repayment options to meet any of small business needs:
- Commercial real estate loans. Both fixed and variable rate commercial real estate loans are available to finance the acquisition of commercial real estate.
- Commercial and industrial loans. First Bank Kansas offers a variety of funding options to help you cover start-up expenses, equipment purchases, daily operational expenses, and more.
- Small Business Administration loans. The bank works closely with the Small Business Administration to offer government-backed SBA loans at more favorable terms.
- Construction loans. This type of loan can be used to fund the construction of a commercial property.
- Other types of loans. You are also welcome to apply for the following types of loans: operating line of credit, machinery and equipment loan, vehicle acquisition loan, livestock loan, irrigation equipment loan, and more.
Emprise Bank
The Emprise Bank has a lot of experience with SBA loans. They offer four finance possibilities that include a 7(a), a Small loan, an Express loan, and a 504 loan, each with its own terms and rates. The funds can be used for:
- Working capital
- Machinery and equipment
- Purchasing, renovating, or constructing buildings
- Purchasing land
- Inventory and supplies
- Start-up or business purchase
- Refinancing
The Emprise Bank also offers secured and unsecured business loans, including operating lines of credit, equipment and commercial vehicle loans, and more. You would need to contact the lender directly to find out the specific rates and terms.
United Midwest Savings Bank
The Kansas-based United Midwest Savings Bank is the country’s 8th biggest creditor and ranks 25th in the national list of top SBA lenders. The bank offers two different options for loans: $150,000 or lower and $150,000 or more.
For larger loans, the bank has a team of eight knowledgeable SBA lenders available to help guide business owners through the application process. These lenders have successfully helped hundreds of small businesses in the industries of hospitality, insurance, medicine, dentistry, veterinary practice, and more. The larger loans are meant for businesses that want to acquire an existing practice or service, expand the business premises, or upgrade specialty equipment.
| Institution | Type of Loans | Amounts | Term | Interest Rates. |
| First Bank Kansas | Commercial real estate loan Various commercial and industrial loans SBA loans Construction loans | Not specified | Not specified | Not specified - both fixed and variable rates available for commercial real estate loans |
| Emprise Bank | 7(a) Small loan Express loan 504 loan Business line of credit Equipment loan Commercial vehicle loan Aircraft loan Private placement industrial revenue bonds | Not specified | Not specified | Not specified |
| United MidWest Savings Bank | Small loans Large loans | $150,000 or less. $150,00 or more | Not specified | Not specified |
Top Online Kansas Small Business Loan Options:
It’s important to remember that there are alternatives to regular banking. Lenders who have an online presence are gaining ground. Here are some that provide services to Kansans-based small businesses:
1. OnDeck
OnDeck is an alternative lender dedicated to making it easier and faster for Kansas small business owners to obtain the necessary financing. With OnDeck, you have two types of funding to choose from: term loans and business lines of credit. One great thing about these loans is that the funds can be used in virtually any way you wish: from covering operational expenses to purchasing new equipment, to covering your tax bill.
Pros
Cons
With a business term loan from OnDeck, you can receive a lump amount of anywhere between $5,000 and $250,000, with a repayment period between 3 and 18 months. The total APR can range between 11.98% and 46.06%, depending on how quickly you are able to pay the loan back.
A business line of credit is more flexible: you can draw as much money as you need (within the specified limit), whenever you need it. The credit limit can range from $6,000 to $100,000, with a repayment term between 3 and 18 months. Lines of credit are meant to be paid off quickly, - otherwise, you can be faced with an APR of up to 35.2%.
The Bottom Line
While both term loans and business lines of credit from OnDeck come with somewhat high interest rates, they may still be viable if you are ready to pay off the loan before its maturity. In addition, with OnDeck, you will benefit from a simple online application process, fast turnaround, and great, personalized customer service.
Try OnDeckRead more in the full OnDeck review
2. Credibly
Credibly has been operating since 2010, providing convenient business financing to small business owners from various industries. Small business owners in Kansas can choose from seven different loan programs offered by Credibly:
Pros
Cons
- SBA loans
- Long-term business expansion loans
- Working capital loans
- Business lines of credit
- Merchant cash advances
- Equipment financing loans
- Invoice factoring loans
Government-backed SBA loans are one of the most popular loan types. They come with attractive interest rates and terms, as well as lower credit score requirements than other types of loans.
Credibly’s financing is available to a broad range of customers, from all kinds of industries, including high risk ones like legal and surgical practices. The application process is fast, and qualification criteria aren't too strict: for most loans only a minimum credit score of 500 is required.
With so many different types of loan products, fees and terms can vary greatly. For example, long-term business expansion loans can range from $150,000 to $5 million, with a repayment period of three to ten years. On the other hand, working capital loans offer the highest loan amounts of up to $400,000 and repayment periods from six to eighteen months.
The Bottom Line
If you're looking for an alternative lender, you might want to check out Credibly. Not only do they have a great reputation, but they are one of the few lenders that actually care about their clients. They offer a fast and easy online application process; they have a friendly customer service team; and they have some of the best loan options available for small businesses in Kansas.
Try CrediblyRead more in the full Credibly review
3. Fora Financial
Founded in 2008, Fora Financial has quickly become one of the most reputable alternative lenders offering small business funding to entrepreneurs throughout the country. The lender focuses on two main financing types: merchant cash advances and short-term business loans. With either type of loan, you can expect to receive the funds in no longer than 72 hours. In fact, many customers report having the money deposited into their account within only 24 hours after their application has been approved.
Pros
Cons
Both short-term business loans and merchant cash advances from Fora Financial can range from $5,000 to $500,000, with factor interest rates of 1.1 to 1.3. Short-term loans come with a repayment period between 4 and 15 months, but merchant cash advances are considerably more flexible when it comes to the term length. Here, you will be borrowing against future credit card sales, however long it takes to repay the funds.
It is worth noting that Fora Financial is not strict in terms of the use of funds: you can use the loan however you see fit, as long as it supports your Kansas small business.
The Bottom Line
If you are looking for a merchant cash advance or a short-term business loan, Fora Financial is an excellent option. With this lender, you can expect to receive a cash injection of up to $500,000 in a matter of days, so that you can continue growing your business.
Try Fora FinancialRead more in the full Fora Financial review
4. Fundbox
Since 2013, Fundbox has provided loan products to over 300,000 small businesses throughout the country. The two main options available are term loans, which can be used for one-time large purchases, and revolving lines of credit, which are ideal for ongoing operational expenses.
Pros
Cons
Both term loans and credit lines from Fundbox can reach $150,000 in value, with a weekly repayment schedule. Business term loans must be repaid over either 24 or 52 weeks, while lines of credit are shorter-term, with terms ranging anywhere between 12 and 24 weeks. Interest rates can get high for first-time clients, reaching 18% for term loans and 20% for lines of credit.
The Bottom Line
Fundbox is ideal for small business owners looking for a term loan or line of credit with an easy application and fast fund disbursement. In addition, Fundbox rewards its repeat clients with lower interest rates and higher loan limits.
Try FundBoxRead more in the full Fundbox review
Additional Kansas Small Business Financial Resources
When looking for small business financing, it is important to research the state government’s financial aid resources.
NetWork Kansas Matching Loan Programs
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.
Agricultural Grants and Cost Share Programs
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.
Kansas Business Incentives and Services
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.
Wichita State University
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.
Kansas Angel Investors
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.
Wichita SCORE
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.
Kansas Small Business Development Center (SBDC)
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.
About the Author
Tetiana Sitiugina-Babiuk
Independent writer, content strategist, and financial sector specialist. Tatiana has an extensive experience in working with financial institutions such as Bank of Canada and Risk Management unit at FinDev Canada. She holds an MA in Financial Risk Management from the University of Toronto.
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