Kansas Small Business Loans

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.

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:

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.