SBA Microloans

The South Central Kansas Economic Development District, Inc. is pleased to offer a Microloan Program for small businesses that have modest credit needs and do not qualify for financing from traditional credit sources.

Eligibility

• For profit, privately owned, established small businesses located in the 14 county service area. 
• Must meet size standards of the US Small Business Administration (most small businesses do).
• Start up or growing businesses which may not meet regular bank lending criteria, but which have a track record in business and/or paying their bills on time and which have reasonable prospects of being able to repay a loan.
• Business must have a turndown from area lenders for projects $20,000 or greater.
• Have sufficient monthly income to pay back the loan.
• If business owner is behind in payments, child support payments, or in default on any loans including government and student loans this could make the owner ineligible.
• Loans under $7,500 may qualify for an accelerated application process, depending on credit history.

Loan Amount

• Minimum of $500 with a maximum of $35,000. Total debt of project cannot exceed $105,000.

Interest Rate/Fees

• Fixed rate of interest.  10.25% for loans over $10,000; 10.95% for loans under $10,000.
• $100.00 Maximum fee per year, plus closing costs.
• No Application Fee.

Repayment Term

• 72-month maximum term.
• Interest only payment period possible.
• No prepayment penalty.

Collateral

• First lien on assets purchased with the proceeds of the loan are required, but not the only consideration for collateral.
• Personal guarantees of the owner(s) (20% or greater) of the business are required.

Use of Funds

• Working capital, expansion, purchase inventory, equipment financing.
• Or just about any legitimate business need.
• Cannot fund improvements to residential property, refinance existing debt, or purchase real estate.

Technical Assistance and Training

• Available at no or minimal charge through the term of the loan.
• Includes accounting, marketing, basic business management, and employee concerns.

Download the loan application here.  Or fill out the application on-line at www.kacdc.com.

For More Information Contact:

Christie Henry, Program Manager
Email:  christie@sckedd.org
316-262-7035
209 E. William, Ste. 300
Wichita, Kansas 67202-4012