Loan Funds to Accelerate Your Business

This Fund Is Designed For:

For-profit and non-profit new or existing Kansas small businesses (less than 500 employees) who fit the criteria for at least one of the GROWKS loan options and have bank funding as part of the project are eligible to apply. The programs are also designed to focus on underserved geographies (rural/urban-distressed/ statewide), populations (minority/women/economically disadvantaged) and business types (target sector).

Loan Funds May Be Used For:

Startup costs

Working capital

Franchise fees

Acquisition of equipment

Inventory

Services used in the production, manufacturing, or delivery of a business’s goods or services

Services used in the purchase, construction, renovation, or tenant improvements of an eligible place of business that is not for passive real estate investment purposes

Loan Details:

GROWKS loan terms are 4% interest rate for 1-5 year loans and 6% interest rate for 6-10 year loans.

A bank, or other financial institution such as a Community Development Financial Institution (CDFI), is required to be part of the project, and the funding from the different sources should occur around the same time. The following can count as match but are NOT Required: Loan down payment and/or owner injection, family or friend investments, and/or other private investors. To count these dollars as match there will need to be proof of these funds as part of the project. Typically proof is a bank memo, copies of checks, or proof of bank deposits of the investment(s). Please no receipts for equipment, materials, etc. The following will NOT count as match but can be part of the project: local/regional revolving loan funds (RLFs), NetWork Kansas loan funds, other public sources of financing, grants, etc.

GROWKS loans are not required to be collateralized. However, collateral position may be a consideration for the Review Committee(s). GROWKS will always be subordinate to any bank(s) involved in the project.

Like all NetWork Kansas programs, potential applicants will need to be connected to a NetWork Kansas Partner such as a Certified Development Company (CDC), Entrepreneurship (E-)Community, or other Partner who has experience with NetWork Kansas programs. All projects will need to be connected to a Partner who can provide due diligence on the project, this includes CDCs and Authorized E-Communities (Riley County is an authorized E-Community, administered by the Manhattan Area Chamber of Commerce).

GROWKS Loan Programs:

· Minority/Women/Economically-Disadvantaged Starter Programs – These Starter Loans provide a 200% match to already approved bank loans for minority-led, women-led or economically-disadvantaged-led businesses in Kansas. Starter loans of up to $100,000 can be approved through this program for eligible borrowers. Download the GROWKS Starter Program Flyer here.

· Minority/Women/Economically-Disadvantaged Growth Programs – These Growth Loans provide a 25% match to already approved bank loans for minority-led, women-led or economically-disadvantaged-led businesses in Kansas. Growth loans of up to $250,000 can be approved through this program for eligible borrowers. Download the MWE Growth Programs Flyer here.

· Rural/Urban Distressed Programs – These loans provide a 150% match to already-approved bank loans for businesses located in rural and distressed areas of urban centers in Kansas. Loans of up to $100,000 can be approved through this program for eligible borrowers. Download the Rural/Urban Distressed Programs Flyer here.

· Community Asset Programs – Projects funded through these loans benefit the community by increasing quality jobs, access to care, education, healthy behaviors and/or civic engagement and/or provide economic benefits to the community. Community Asset loans provide a 15% match to already approved bank loans. Loans of up to $250,000 can be approved through this program for eligible borrower projects. Download the Community Asset Programs Flyer here.

· Target Sector Programs – Projects funded through these loans advance target sectors including advanced manufacturing, aerospace, distribution, food and agriculture, and professional and technical services. Target Sector loans provide a 10% match to already-approved bank loans. Loans of up to $1 million can be approved through this program for eligible borrowers. Download the Target Sector Programs Flyer here.

This Fund Is Designed For:
NetWork Kansas Entrepreneurship (E-) Communities create a revolving loan fund that is reviewed at the local level. The loans are intended as gap financing to help entrepreneurs start or grow a business in a specific community. The loan program matches public sources of capital and bank loans, and can provide up to $50,000 per project. Interest rate and repayment terms are determined at the time of loan approval.

Typically, terms are 4-6% and less than 5 years. Riley County E-Community funds cannot account for more than 50% of the total loan package.

Applicant Eligibility:

Applying businesses must be for-profit entities located in qualifying census tracts in Manhattan or outside of Manhattan in Riley County. Pottawatomie County and Geary County also have E-Community programs that are applicable county-wide.

Loan Funds May Be Used For:

Funds are flexible and can be used for a variety of business purposes, including:

Startup costs

Equipment

Inventory

Business expansion costs

Working capital

Funds may not be used for payroll taxes, personal vehicles, building renovations not tied to a specific business tenant, residential real estate, passive real estate, to pay off or refinance existing debt, or pay owner’s salary/draw.

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Download the E-Community Overview here.

This Fund Is Designed For:

The ELEVATE Micro-Loan program supports Manhattan entrepreneur and small business capital needs. The low-interest loans can be used to fund growth and expansion projects that will drive economic activity in the community. The program is made possible by funding from the City of Manhattan and facilitated by entrepreneurial support partners, including the Manhattan Area Chamber of Commerce, Spark, Black Entrepreneurs of the Flint Hills, Kansas State University Innovation Partners, the Small Business Development Center, and Network Kansas.

Applicant Eligibility:

Applicants must be for-profit entities located within the city limits of Manhattan and in good standing with the Kansas Secretary of State. The program offers loan amounts up to $15,000 at 4% interest with repayment periods up to 36 months (3 years). There are no penalties for early pay-off and the 50% matching requirement may come from existing and planned business investment.

Loan Funds May Be Used For:

Equipment

Inventory

Marketing and Promotions

Building Purchase or Lease

Remodel, repairs, and leasehold improvements

Working Capital

Required Technical Assistance:

ELEVATE applicants are required to work with a qualified technical assistance partner as part of the application and loan approval process.

Download the Elevate Fund Flyer here.

This Fund Is Designed For:

The Empower Fund exists to help broaden access to capital to minority-owned firms that may not otherwise qualify for traditional funding. The Fund was created to further the mission of increasing access to funding among socially-disadvantaged populations. The Empower Fund pairs capital with technical assistance, also known as business development support. By pairing these two resources, the Empower Fund provides applicants an opportunity to strengthen their business management skills while also providing funds to strengthen their operations.

Applicant Eligibility:

Empower Fund applicants are minority-owned businesses or nonprofits, demonstrating at least 51 percent business ownership by a racial and/or ethnic minority, who may have a more challenging financial profile requiring them to seek alternative commercial funding sources. Challenges may include lower credit scores, lower profit margins and/or collections activity, in some instances.

What makes the Empower Fund unique?

What distinguishes the Empower Fund, among other programs, is that the Fund doesn’t turn away applicants from the consideration process who may have a more challenging financial profile. Instead, the Fund reviews applications with a broader range of criteria to work from to make funding considerations and recommendations. The Empower Fund encourages reviewers to broaden the lens beyond a traditional lending process to help make capital more accessible to diverse business owners.

Empower Loan Details

Empower loans may be up to $15,000. Terms are 4% interest rate and 48 month (4-year) repayment terms. There is no early pay-off penalty and no matching funds are required.

Loan funds may be used for:

Equipment

Inventory

Repairs

Building Purchase

Infrastructure

Refinancing Existing Business Debt

Working Capital

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Download the Empower Fund Flyer in English.

Descargue el Empower Fund folleto en Español aquí.