Show Me the Money: GAP FINANCING
Shawnee Startups is in place to provide gap financing to help entrepreneurs start or grow a business in Shawnee County. The loan program matches up to 60 percent of other public sources of capital and/or funds from a financial institution. Up to $75,000 can be provided per project that can be used for a variety of business purposes, including:
Purchase of business equipment
Purchase of business inventory
Improvements to owned real estate
Real estate, when partnered with commercial lender
Essentia Salon and Spa and Brew Bank have taken advantage of the funding opportunities with Shawnee Startups.
Most startup or expanding small businesses that are creating or retaining jobs in the incorporated areas of rural Shawnee County plus the economically distressed areas in Topeka qualify for funding.
Go to www.novoco.com and click on New Markets Tax Credit mapping tool to obtain a map of the areas in Topeka. However, there are ways to qualify if a business is not in a distressed area.
STEPS TO APPLY
You will need a detailed business plan. The Washburn Small Business Development Center can assist with that development. In addition to the business plan, both a bank and the E-Community will need financial projections for the business. Once the amount of funding needed is known, the applicant should talk to a financial institution to identify if they can obtain the needed funds from them. If not, then they can apply for the E-Community funds, but these can be no more than 60 percent of the total loan amount needed. The remainder must come from a financial institution and/or a local or regional public source of capital. When ready to apply for funds, the entrepreneur or business can contact Gary Satter at 785-608-8801 for a loan application and to answer more questions.
KEYS TO SUCCESS
A written, detailed business plan is required.
Existing funding from a financial institution should already be in place.
A proven business track record and solid financial projections are helpful.
Startup or growing businesses that may not meet regular bank lending criteria, but that have a track record of paying their bills on time and have reasonable prospects of being able to repay a loan will be considered.
Preference will be given to borrowers of startup businesses who complete an approved business training class.
Shawnee Startups is an approved Network Kansas E-Community that has raised seed money for local entrepreneurs through donations from individuals or businesses within the community.
Information Provided By Gary Satter, Executive Director, of Glacial Hills Resource Conservation and Development Member of the Leadership Team of Shawnee Startups