Rural Business Development Loan Program
This is a loan program for small businesses that need loans between $2,500 and $50,000. It’s being funded through a Kansas Income Tax Credit Program authorized by the Kansas Economic Growth Act of 2004.
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Your business might be eligible for this loan program if:
- For profit, privately owned, small businesses located in the 14 county service area (except for the cities of Hutchinson and Wichita).
- $2,500 to $50,000
- $20,000 or greater requires a bank denial letter
- Direct loan costs are paid by the borrower (credit reports, filing fees, attorney fees)
- Flat 2% fee
- Fixed interest rate.
- For loans $25,000 or less it is Prime +2%; for loans over $25,000 it is Prime +1%.
- Up to 15 year term principal and interest based on loan amount and collateral.
- No penalty for early repayment.
- Collateral required.
- Satisfactory guarantor considered.
- All business assets, including assets purchased with loan proceeds or real estate may be used as collateral.
- Full information report required.
- Applicant must show creditworthiness.
- No tax liens, open judgments or collections.
- Explainable circumstances are taken into consideration.
Use of Funds
- Purchase of business equipment or business inventory
- Working capital
- Leasehold improvements
- Real estate with satisfactory environmental review
For More Information Contact
Christie Henry, Lending Program Manager
9730 E. 50th Street N.
Bel Aire, Kansas 67226