There are several funding options for your business. Your KACDC organization can tell you the pros/cons of each program and which one might be the best fit for your project. Some of the programs most commonly used that we can assist you in obtaining include:
- Small Business Administration (SBA) - 504 Loan Program - ONLY available from KACDC organizations
- Small Business Administration (SBA) - 7(a) Loan Program
- Local & Regional Revolving Loan Funds - many have low interest rates
- NetWork Kansas - StartUp Kansas Loan Program & Kansas Capital Multiplier Loan Fund
- United States Department of Agriculture (USDA) - Business & Industry Loan Guaranty Program
- Kansas Community Development Block Grant Program - Economic Development Category
- Economic Development Administration (EDA)
- Angel Investors & Venture Capital - resource and contact
- Other local, regional, Kansas, federal, and conventional loan programs
What is a Certified Development Company?
A Certified Development Company is a nonprofit corporation that is certified by the Small Business Administration to assist business in accessing its SBA 504 Loan Program. The CDC works with SBA and banks to provide small business financing through the SBA 504 Loan Program.
Why is the SBA 504 Loan Program one of the best programs a business can use to purchase or construct a building?
The SBA 504 Loan Program provides long-term, fixed rate, subordinate mortgage financing for acquisition and/or renovation of capital assets including land, buildings, and equipment. Some refinancing is also permitted.
50% - Bank in first mortgage position
40%*- SBA 504 loan offering 20-year fixed interest rate in second mortgage position on real estate and 10 or 20 year term on long life equipment, i.e. industrial
*Deduct 5% for special purpose real estate, i.e. hotel
Deduct 5% for start-up business (less than 2 years old)
**Add 5% for special purpose real estate, i.e. hotel
Add 5% for start-up business (less than 2 years old)