Kansas has received an additional $4,477,239 from the U.S. Department of the Treasury to expand Kansas' small business lending programs through the State Small Business Credit Initiative (SSBCI). This transfer represents a third and final disbursement of Kansas' total SSBCI allocation of $13,168,350. NetWork Kansas administers the Kansas Capital Multiplier Funds with these proceeds in partnership with the Kansas Department of Commerce.
Kansas is one of only 14 states so far to receive their full SSBCI allocation and Kansas leads the nation in private capital leveraged by these loan funds. For every $1 of federal funding awarded to small businesses through the Kansas Capital Multiplier Funds, Kansas has leveraged $20 of private capital*.
Since the launch of the Kansas Capital Multiplier Funds, NetWork Kansas has awarded 55 businesses with $8.4 million. These businesses have raised an additional $146 million in funds. Of these 55 businesses, 36 received loans through the Kansas Capital Multiplier Loan Fund and the other 19 received investment through the Kansas Capital Multiplier Venture Fund.
"We are thrilled with the success of this program and the impact it is making in our state," says Corey Mohn, Director of Statewide Programs for NetWork Kansas. "Leveraging private capital investment of more than $146 million is a testament to the strength of our model and the resource partners that help Kansas entrepreneurs every day find access to the resources they need."
The Kansas Department of Commerce works in collaboration with the NetWork Kansas, and its network of 500 Kansas business-building organizations to support small business projects in Kansas. Entrepreneurs and existing small businesses access these funds by working closely with local or regional financial institutions, NetWork Kansas partners and angel investment networks.
One example of a small business project supported by the Kansas Capital Multiplier Funds is KKAN-KQMA Radio in Phillipsburg, Kansas. The previous owner of this community radio station passed away and the assets of the station transferred to an estate. An existing employee, Bob Yates, worked with multiple funding sources, including the Kansas Capital Multiplier Loan Fund, to secure enough financing to keep the station operating in Phillips County.
"We could not have done it all with regular financing, but having the low-interest option for some of the money made it feasible," says Yates. "I don't know that we would have done it without these funds."
Under the State Small Business Credit Initiative, all states are offered the opportunity to apply for federal funds for state-run programs that partner with private lenders to increase the amount of credit available to small businesses. States must demonstrate a reasonable expectation that a minimum of $10 in new private lending will result from every $1 in federal funding.
Opportunities still exist for businesses to apply and receive funding through the Kansas Capital Multiplier Funds. Interested businesses or partner organizations should contact Corey Mohn at (785) 296-6611 or email@example.com.
About NetWork Kansas:NetWork Kansas was established as a component of the Kansas Economic Growth Act of 2004 to further entrepreneurship and small business growth as a priority for economic and community development in the State of Kansas. Backed by more than 500 resource partners statewide, NetWork Kansas promotes an entrepreneurial environment by connecting entrepreneurs and small business owners with the expertise, education, and economic resources they need in order to succeed. For more information about NetWork Kansas, visit www.networkkansas.com, or call 877.521.8600.