Jim's Story

Gap Financing

Jim’s story is an example of the successfully using a SCKEDD business loan to provide gap financing for your project.

Jim had been working in his business for 15 years. As the market had changed, so had the business and its needs to keep up with his company’s competitors.


It was time to put money into research and development and prototyping.


To do this, Jim called his local banker. They were willing to move forward with additional financing from another lender. Jim’s banker contacted the team at SCKEDD – a local non-profit lender – and asked them to partner on the project.


As a team, Jim, his banker, and the SCKEDD work together to fully fund Jim's project.

Gap Financing 

SCKEDD provides gap financing in the form of a business loan. Loans range from $5,000 to $300,000.

Used for gap financing, these funds are ideal to match to conventional bank loans, local community funds, and other SCKEDD business loans. Gap financing business loans have a fixed rate term for most business financing needs including land, buildings, equipment, machinery, inventory, and working capital.


  1. You go to the bank for a loan and the lender recognizes additional funding 'gap financing' is required to complete your project.

  2. Your lender calls SCKEDD to determine if the project is eligible for a SCKEDD business loan.

  3. Working together, the bank and SCKEDD begin the underwriting process. (Please note that you may be asked to provide program-specific information)

  4. When the loan application package is complete it is reviewed by our District Loan Committee.

  5. If the District Loan Committee approves the loan, our lending team assists you, the borrower, for the life of the loan.



Qualified borrowers can use SCKEDD Revolving Loan Fund to finance

  • Working Capital

  • Acquisition of land and buildings

  • New Construction

  • Façade and building renovation

  • Landscape and property improvements

  • Machinery and equipment



You may qualify if you and your business meet the following criteria

  • The business is in our service area in Kansas. This includes the following counties: Butler, Chautauqua, Cowley, Elk, Greenwood, Harper, Harvey, Kingman, McPherson, Marion, Reno, Rice, Sedgwick, and Sumner

  • The business must create or retain jobs

  • SCKEDD is limited to funding a maximum 30% of the total project costs. Two-thirds of the project is financed by other private or public funding. This includes borrower injection, bank financing, and other local community funds.

  • The business is for-profit

  • Individuals that own 20% or more of the company are willing to act as personal guarantors



Interest rates

Interest rates are based on Wall Street Journal prime rate plus a small percentage.



There are generally two fees a small business borrower will pay for this loan. There is no fee to apply.

  • Closing fee of 2% 

  • Any direct or third-party closing costs associated with the loan



Up to 15 years based on the use of funds. There is no prepayment penalty.

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Hutchinson office

530 E. 30th Ave

Hutchinson, KS 67502

Phone: 620-259-6544
Fax: 620-508-2042

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9730 E. 50th Street N

Bel Aire, KS 67226

Phone: 316-262-7035
Fax: 316-262-7062

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This institution is an equal opportunity provider and employer. If you wish to file a Civil Rights program complaint of discrimination, complete the USDA Program Discrimination Complaint Form, found online at www.ascr.usda.gov/complaint_filing_cust.html, or at any USDA office, or call (866) 632-9992 to request the form. You may also write a letter containing all of the information requested in the form. Send your completed complaint form or letter to us by mail at U.S. Department of Agriculture, Director, Office of Adjudication, 1400 Independence Avenue, S.W., Washington, D.C. 20250-9410, by fax (202) 690-7442 or email at program.intake@usda.gov

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