Areas Served: Nemaha County
In early 2001, Nemaha County, Kansas received a Community Development Block Grant (CDBG) to establish a Microloan program for new and existing entrepreneurs in the county.
Small businesses with five or fewer employees can apply for low-interest loans of up to $15,000 that may be used to buy real estate, equipment, or working capital.
The Microloan may also be used as a guarantee in conjunction with financing from a private institution.
In 2005 this revolving loan program remains available for Nemaha County residents and when funds are repaid by borrowers are loan again to new or expanding businesses.
The Department of Commerce declared a one year moratorium on the Microloan Program in 2003. After several revisions to the program it was offered again in 2004. In 2004 Brown County with the assistance of RDA, applied and was awarded a CDBG Grant in the amount of $100,000 for a microloan program.
The new program increased the lending limit to $25,000 with a cash match requirement for any amount over $15,000. This program also requires the applicants to complete an approved financial training course.
Other program guidelines are much the same as the earlier Nemaha County program.
The Microloan not only allows individuals to begin their dream business, but also can help to rejuvenate the economies of rural towns.
In the case of Videos To Go, Nemaha County’s first Microloan recipient, Shawn Hamner (owner) was able to purchase the business and relocate to Sabetha’s downtown business district.
Thus, Shawn is able to earn money for himself rather than someone else while simultaneously filling an empty building in downtown Sabetha.
Shawn used both Microloan funds and private funds from the Morrill State Bank of Sabetha to complete the purchase.
The package is the perfect example of how RDA works hand-in-hand with local lenders to expand the economies of rural Northeast Kansas.
The Microloan Program is perfect for budding entrepreneurs who have had difficulty obtaining credit due to a lack of capital/equity or as a result of minor credit problems in the paSt.
Contact InformationRural Development Association of Northeast Kansas
Address: 205 S. 8th St., Suite 3
City: Sabetha
State: Kansas
Website:
http://www.rdanek.com/microloan.htm
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