NetWork Kansas Announces First Group of Banks Supporting Small Business
Wichita, Kansas, — Today NetWork Kansas announced the first round of banks who made a commitment to be Anchor Supporters of NetWork Kansas in an effort to provide small businesses with additional support. Anchor Supporters are banks contributing from $50,000 – $133,333 each through participation in the Entrepreneurship Tax Credit.
Participating banks include:
- First National Bank of Syracuse with offices in Garden City, Johnson, and Ulysses
- INTRUST Bank headquartered in Wichita
- Fidelity Bank headquartered in Wichita with 21 offices across Kansas and Oklahoma
- Mid America Bank headquartered in Baldwin City with branches in Gardner, Lawrence, and
- Farmers Bank and Trust headquartered in Great Bend with offices in Kinsley, La Crosse, Larned, Albert, Bazine, and Kansas City
Funds donated provide capital to the nationally-recognized Entrepreneurship Community Partnership (E-Communities), statewide loan programs, and entrepreneurship programming. E-Communities include 64 communities across the state.
“Our E-Communities continue to innovate to ensure that entrepreneurs and small businesses are connected to the capital and technical assistance they need,” stated Erik Pedersen, NetWork Kansas Vice President. “Banks are the number one source of capital and are, once again, stepping up to provide support.”
The Kansas Bankers Association (KBA) in coordination with NetWork Kansas introduced Senate Bill 90 to allow banks and savings and loans the opportunity to utilize the tax credit. Under the original 2004 legislation, financial institutions were not able to participate. The bill also increases the previous cap of $50,000 for this 75% state tax credit for any donor. Donors can now utilize up to $100,000 in credits.
“We were pleased to lead efforts on Senate Bill 90 so that banks across Kansas could support efforts to provide technical assistance and gap funding to businesses in their area,” said Doug Wareham, KBA President & CEO. “More than 100 bankers serve on local Entrepreneurship Community Leadership Teams that they can now support by taking advantage of the tax credit.”
Banks interested in participating in this tax credit program can call 877.526.8600 and ask for Steve Radley or Erik Pedersen to make a commitment or to learn more.
*Any tax credits from Republic County will bring 10% back to RCED to continue funding E-Community programs, local Youth Entrepreneurship Challenge, and workshops.
How does this all work:
Example: If a bank, business or individual in your community were to utilize up to the max donation amount of $100,000 in tax credits (Donation of $133,333) then the E-Community would receive $10,000 in “marketing funds” (also referred to as eship support funds). So, the bank, business or individual would write a check for $133,333 and receive a state tax credit of $100,000, the E-Community would receive $10,000. Essentially their $133,333 “donation” would only “cost” them $33,333. AND – they can claim the $33,333 that they did not get a tax credit for as a donation on their federal return so they could really get extra benefit there as well. AND – they would have directly supported the local E-Community with the 10% marketing funds of $10,000. *Please consult an accountant for additional guidance.
Max Donation – $133,333
State Tax Credit (75%) – $100,000
E-Community Support funds (10%) – $10,000
Amount they can claim on Federal Tax as donation (25%) – $33,333
A few things to remember:
1.) Donations must be postmarked by 12/31/2019 in order to qualify
2) $250 minimum amount – every donation regardless of size is appreciated
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 partners statewide, the NetWork Kansas service promotes an entrepreneurial environment by connecting entrepreneurs and small business owners with the expertise, education and economic resources they need in order to succeed.
NetWork Kansas facilitates the development of an entrepreneurial ecosystem within participating communities through the E-Community Partnership. Contributing factors to successful development include availability of financial capital, support by local leadership and development of educational resources. All of these factors combine to increase entrepreneurial activity in participating towns, leading to increased startup activity, business expansion, job creation and more.
For more information about the Entrepreneurship (E-) Community Partnership, visit www.networkkansas.com/ecommunities , or call 877.521.8600.