County to receive grant for small-business loans
Marion County has been chosen as one of six Kansas counties to receive a $100,000 grant that will be used for loans to small businesses.
Marion economic development director Susan Cooper applied for the grant on behalf of the county last October. She got word Friday that the county had been accepted.
Five other counties, Linn, Morton, Sheridan, Sherman, and Stevens, also will also receive $100,000 each.
But, the county still has a few more hurdles to clear before small businesses around the area can start applying for loans.
The next step? The Marion County Economic Development Council must form a loan review board and have local officials attend a training seminar on Feb. 28.
The ultimate goal is to get the process in action as quickly as possible, Cooper said.
"We have to get to it right away," she said. "We won't really know the details of how to get things going until the 28th."
The grant money comes from the Kansas Department of Commerce and Housing. The county applied for the fund through the South Central Kansas Economic Development Division.
Small businesses from Tampa to Hillsboro to Goessel can apply for a loan up to $15,000. Uses for the loan include starting a new business, buying property, or acquiring new inventory.
Businesses can even use the money as collateral when applying for another loan, said Cooper.
"This loan will be well-used," she said.
SCKEDD will receive $10,000 of the grant for its operating expenses, but the rest of the funds will be distributed to applicants on a first-come, first-serve basis.
Each loan comes with an interest rate of four percent below New York prime, but not less than five percent. Loans will be repaid in five to 10 years, Cooper estimated.
To determine who receives the funds, the Marion County Economic Development Council plans to appoint a Loan Review Board comprising people from different areas of expertise and different geographical areas of the county. A county commissioner also will serve on the board, Cooper said.
SCKEDD will be the official administrator of the grant, and Cooper hopes that the organization also will assist in deciding who should receive the funds.
Businesses must meet certain requirements to qualify. Only small businesses with five employees or less can apply, and each company needs to have a copy of its business plan. In addition, 51 percent of the applicants must meet the criteria for having low- to moderate-income status.
Cooper sees the grant as an opportunity to help local businesses while stimulating the county economy at the same time.
If all goes well, the county will have, in the future, a revolving loan program that continues to circulate money in Marion County, she said.
SCKEDD administers similar micro-loan grant programs for Harvey, Rice, Butler, and Sedgwick counties, said Christy Henry of SCKEDD. Henry wrote Marion County's grant application.
"We're the only micro-loan lender in the state," Henry said.
The organization only distributes one grant per county to ensure that the money is evenly distributed around the area.
"It's nice for those counties," Henry said.
For further questions about the micro-loan program, contact Susan Cooper at (620) 382-3703.
