Article from The Belleville Telescope
100 businesses benefit since 1985
The Republic County Development Revolving Loan fund has more than $515,000 available to loan to eligible businesses.
“With the addition of the E-Community Fund, we have more flexibility in helping businesses than we have had in the past,” says Mikel Hadachek, a member of the RCD board.
Hadachek said in particular, timing has been an issue with some loans from the Kansas Department of Commerce funds. Because of paperwork and other requirements, businesses sometimes needed to move forward with their projects more quickly than the loans could be processed.
“There are fewer restricts on the E-Community Fund,” he noted. That fund was created this year by an allocation of tax credits awarded to the county, and contains over $71,000.
RCED note: The new E-Community funds were received through the sale of tax credits in 2013 in Republic County and state wide; allocated from NetWork Kansas.
Nearly 100 benefit
Since the revolving loan fund was created in 1985, nearly 100 Republic County businesses have taken advantage of the program. The program allows for one year of interest-only payments, which helps a business grow and generate a positive cash flow in its first year.
RCD loan funds have helped create more than 220 jobs in the county, and revolved over $2.8 million in principal payments back into the Republic County economic development
Right now, the RCD has 16 active loans. Loans can be used by a wide range of for-profit companies and non-profit entities engaged in industrial manufacturing, wholesale, retail-commercial and service businesses.
Loans can be used to purchase fixed assets, or to provide working capital, including inventory. Matching funds are preferred at a ratio of $2 of loan to every $1 of personal investment.
To qualify for a loan, a business must create or retain one job for every $35,000 of county loan involvement. Maximum interest rate is 3.5 percent below the national prime interest rate, with a minimum rate of 4 four percent.
For more information on the revolving loan fund, contact any bank loan officer in Republic County, or the Republic County Treasurer’s Office, 527-7236.
For additional small business resources and assistance from RCED and our resource partners visit – www.republiccountykansas.com/page/business-resources-incentives/resources-partners