McPherson County E-Community Loan Program

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 or zero 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 $3,000 and the maximum is $75,000.

Example:
Capital needed                        $20,000.00
Bank Loan  -40%                    ($8,000.00)
E-Community – 60%              $12,000.00

To utilize the maximum 60% available from the E-Community Loan Fund there is a 40% 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).

Guidelines | Loan ProcessE-Loan Application| Vision | Additional Info


Guidelines

Qualification Criteria: 

  • 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: 

  • 7 year maximum term—length will be determined by amount borrowed
  • No penalty for early repayment

Other 

  • Minimum loan request is $3,000 with a $75,000 maximum amount available per applicant business.
  • Funding may be zero or low interest– rates are structured to match those of acceptable Network Partners (a list is available on the application)
  • Complete application & detailed information is available for download here: McPherson County E-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
  • Speculative concerns
  • Lending or investment institutions
  • Multilevel marketing or pyramid sales

Applicants who are not eligible:

  • Convicted of felony offense
  • Past due on school loans
  • Past due on child support payments