Your business may qualify for several Federal and State government programs that offer financial assistance to small business. Learn more about these programs by reading the summaries below and then clicking through to the links provided.
Small Business Administration Loan Programs
Basic 7(a) Loan Program
7(a) loans are the most basic and most used type loan of SBA's business loan programs. All 7(a) loans are provided by lenders who are called participants because they participate with SBA in the 7(a) program. Not all lenders choose to participate, but most American banks do. There are also some non-bank lenders who participate with SBA in the 7(a) program which expands the availability of lenders making loans under SBA guidelines.
Some of the financial institutions in Pawnee County that offer this loan program are:
- Farmers Bank and Trust - (620) 285-3177
- First State Bank and Trust – (620) 285-6931
- Bank of the West – (620) 285-2163
- Great Plains Development, Inc : Application Assistance for Local Lenders – 620-277-6406
Patriot Express Loan Program
The Patriot Express loan Initiative is for veterans and members of the military community wanting to establish or expand small businesses. The SBA and its resource partners are focusing additional efforts on counseling and training to augment this loan initiative, making it more accessible and easy to use. is offered by SBA’s network of participating lenders nationwide and features the fastest turnaround time for loan approvals. Loans are available up to $500,000 and qualify for SBA’s maximum guaranty of up to 85 percent for loans of $150,000 or less and up to 75 percent for loans over $150,000 up to $500,000. For loans above $350,000, lenders are required to take all available collateral.
Eligible military community members include Veterans, Service-disabled veterans, Active-duty service members, eligible for the military’s Transition Assistance Program, Reservists and National Guard members, Current spouses of any of the above, and the widowed spouse of a service member or veteran who died during service or of a service-connected disability.
The Patriot Express loan can be used for most business purposes, including start-up, expansion, equipment purchases, working capital, inventory or business-occupied real-estate purchases.
Patriot Express loans feature SBA’s lowest interest rates for business loans, generally 2.25 percent to 4.75 percent over prime depending upon the size and maturity of the loan. Some of the financial institutions in Pawnee County that offer this loan program are:
- Farmers Bank and Trust - (620) 285-3177
- First State Bank and Trust – (620) 285-6931
- Bank of the West – (620) 285-2163
- Great Plains Development, Inc : Application Assistance for Local Lenders – 620-277-6406
SBA Express Loan Program
The SBA Express program gives small business borrowers an accelerated turnaround time for SBA's review. You will receive a response to your application within 36 hours. In addition, lower interest rates are often available to you when you apply through an Express program. Some of the financial institutions in Pawnee County that offer this loan program are:
- Farmers Bank and Trust - (620) 285-3177
- First State Bank and Trust – (620) 285-6931
- Bank of the West – (620) 285-2163
- Great Plains Development, Inc : Application Assistance for Local Lenders – 620-277-6406
504 Loan Program/Certified Development Corporation
The CDC/504 loan program is a long-term financing tool for economic development within a community. The 504 Program provides growing businesses with long-term, fixed-rate financing for major fixed assets, such as land and buildings. A Certified Development Company is a nonprofit corporation set up to contribute to the economic development of its community. CDCs work with the SBA and private-sector lenders to provide financing to small businesses.
Typically, a 504 project includes a loan secured with a senior lien from a private-sector lender covering up to 50 percent of the project cost, a loan secured with a junior lien from the CDC (backed by a 100 percent SBA-guaranteed debenture) covering up to 40 percent of the cost, and a contribution of at least 10 percent equity from the small business being helped.
CDCs operating in the Pawnee County market:
Great Plains Development, Inc.
100 Military Plaza, Suite 128
P.O. Box 1116
Dodge City, KS 67801
(620) 227-64061020 phone
E-Mail:
This e-mail address is being protected from spambots. You need JavaScript enabled to view it
Community Development Block Grant - ED (CDBG - ED)
Economic Development – (CDBG-ED) Program
(GPDI’s Assistance in Packaging and Administration)
All incorporated cities or counties in Kansas that do not receive an annual Community Development Block Grant (CDBG) entitlement allocation from Housing and Urban Development (HUD) are eligible to apply to the Kansas CDBG Program.
A private for profit business must participate with a city or county in the application process. The business must provide financial information and a business plan as part of the application process. The grants are made on a competitive basis through the Kansas Department of Commerce. If the application is approved, the loan funds are channeled through the local government to the business.
Qualifications
- Only cities and counties may apply.
- Funds are a grant to the city/county and a loan to the business.
- Funding ceiling is $35,000 per job created or retained with a minimum of $100,000 and a maximum of $750,000.
- Matching requirement is 50¢ non-CDBG funds for every $1 of CDBG funds.
- If the project involves construction, Davis Bacon prevailing wage rates are in effect.
- Funds may be used to provide infrastructure improvements or business financing, but must be for a new or existing business expanding in the community.
- Funding for infrastructure projects is 50% grant and 50% loan at 2% interest for 10 years.
- Business finance projects are 100% loan with a minimum 4% interest. Terms vary with the type of assets being financed.
- Funding for retail businesses has additional requirements.
Great Plains Development, Inc.
100 Military Plaza, Suite 128
P.O. Box 1116
Dodge City, KS 67801
(620) 227-64061020 phone
E-Mail:
This e-mail address is being protected from spambots. You need JavaScript enabled to view it
Rural Business Enterprise Grant (RBEG) Program Revolving Loan Fund
The Rural Business Enterprise Grant (RBEG) Program is designed to assist small businesses in the more rural areas in Southwest Kansas. Funds may be used primarily for land, buildings, machinery and equipment, inventory and working capital. GPDI can make direct loans to qualified applicants and sets the loan term and interest rate.
Eligibility
- For small and emerging businesses in the rural areas or communities in Southwest Kansas which will employ 50 or less new employees and have less than $1 million in projected gross annual revenues.
- Loan turndown or participation letters from area lenders are required.
- No job creation requirement, but to maximum extent possible, encourages employment of low-income persons, farm and displaced families.
- Eligible areas: Entire GPDI service area.
Projects Financed
- Financing is available for most business needs including working capital, inventory, equipment, machinery and other fixed assets. Restructuring of existing debt is not eligible.
- If the project involves construction, Davis-Bacon does not apply.
- Project can be coupled with other internal GPDI loan funds, as well as other lending sources.
Loan Amount
- Maximum loan is $150,000 from an internal revolving loan fund pool. Pool of funds is limited.
Interest Rate/Fees
- Private Enterprises: Variable interest rate ranging from Prime + 1.5% to Prime + 4.25%, Minimum of 9%.
- Public and Non-Profits: Variable interest rate ranging from Prime + 1 % to Prime + 4.25%, Minimum of 9%.
- Origination fee of 1% of loan amount or $500.00, whichever is greater.
- Closing fee of $300.00.
- Miscellaneous fees incurred in the process of approval and closing (i.e. credit bureau inquiries, mortgage filings, U.C.C. searches and filings, appraisals, title work, etc.)
Repayment
- Principal and interest payment schedule based on the cash flow of the business and use of proceeds -
- Land and Building 10 years
- Machinery and Equipment 7-10 years
- Inventory and Working Capital 5-7 years
- Principal payments may be deferred if projections do not show the ability to pay principal right away.
- There is no penalty for prepayment of an RBEG loan.
Collateral
- Loans are secured by the best collateral position available and can be subordinated.
- Personal guarantees of the owner(s) of the business are required.
Please note that the overall portfolio must maintain a leverage ratio of 2:1, private to RLF funds. Therefore some loans may be made without a private match, but these are held to a minimum.
Great Plains Development, Inc.
100 Military Plaza, Suite 128
P.O. Box 1116
Dodge City, KS 67801
(620) 227-64061020 phone
E-Mail:
This e-mail address is being protected from spambots. You need JavaScript enabled to view it
Rural Development Business & Industry (B&I) Program
The B&I program is similar to the SBA’s 7(a) Guaranteed Loan Program, but eligible projects must be located in communities with populations of less than 50,000. The major benefit to rural lenders involves the loan guarantee limits. The B&I loan guarantee limits exceed the maximum limits of the SBA 7(a) program.
Eligibility
- Any legal entity
- There are no size restrictions
- Feasibility study prepared by a disinterested third party required for startup businesses. Feasibility study must include:
- Economic feasibility
- Market feasibility
- Technical feasibility
- Financial feasibility
- Management feasibility
Projects Financed
- Business and real estate acquisition
- Construction and improvements
- Purchase of machinery and equipment
- Working capital, inventory, accounts receivable
- Pollution control and abatement
- Business start-ups
- Refinancing under certain conditions
Loan Amount
- Loan guarantees are limited to a maximum of $10 million per borrower, although RD may approve requests up to $25 million.
- 80% loan guarantee up to $5 million
- 70% over $5 million to $10 million
- 60% over $10 million to $25 million
Interest Rate/Fees
- Interest rate determined by the private lender
- GPDI Origination Fee – up to 1% of the loan amount (paid by the applicant)
- Guaranty Fee – 2% of guaranteed portion (Lender may pass this fee on to the borrower by either direct billing or in the loan proceeds)
- Annual Service Fee – 0.5% paid at end of calendar year on principle balance (Lender pays, this fee can only be passed on to the borrower through the interest rate and not directly billed)
Repayment
- Working capital – 7 years
- Machinery and Equipment – 15 years (or useful life)
- Real estate – 30 years
Collateral
- Usually the assets financed with the loan proceeds. Personal and corporate guarantees are required.
The B&I Guarantee Loan Program promotes economic development in rural communities. The goals of the program are to create and maintain employment and improve a small business’ access to capital. The B&I program is administered by the Rural Business-Cooperative Service of USDA-Rural Development.
Great Plains Development, Inc.
100 Military Plaza, Suite 128
P.O. Box 1116
Dodge City, KS 67801
(620) 227-64061020 phone
E-Mail:
This e-mail address is being protected from spambots. You need JavaScript enabled to view it
