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All
incorporated cities or counties in Kansas that do not receive an
annual Community Development Block Grant (CDBG) entitlement
allocation from Housing and Urban Development (HUD) are eligible to
apply to the Kansas CDBG Program. A private for profit business must
participate with a city or county in the application process. The
business must provide financial information and a business plan as
part of the application process. The grants are made on a
competitive basis through the Kansas Department of Commerce. If the
application is approved, the loan funds are channeled through the local
government to the business.
Qualifications
Economic Development Projects:
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Maximum loan is
$750,000.
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Points awarded by
leverage minimums.
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City or County sets
the loan term and interest rate.
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Matching requirement
for regular economic development requests of $500,000 or
less require $.50 non-CDBG funds for every $1.00 CDBG
funds.
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Matching requirement
for regular economic development requests in excess of $500,000 is
$1.00 non-CDBG funds for every $1.00 CDBG funds.
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For economic
development infrastructure projects, packages are available of 50%
loan and 50% grant, with the loan at 2%.
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Collateral is best
position available and can subordinate to other financing.
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Documented turndowns
required (loan of last resort).
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Financing available
for all business needs.
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Term: Land and
building = 1-15 years; machine and equipment = 1-10 years;
inventory and working capital = 1-5 years.
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Interest rate on
most projects is not less than 3.5% below prime rate, minimum of
4%.
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Cost per job
created/retained may not exceed $35,000. 51% must be
low-to-moderate income jobs. No
penalty for prepayment. One grant available per project.
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Eligible areas:
Entire GPDI service area.
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If the project
involves construction, Davis-Bacon rates are in
effect.
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Business loans are
provided through a CDBG grant to local government on five
competitive rounds.
Contact a
GPDI representative, the
Kansas
Department of Commerce (Commerce), or download the Commerce
publication "Business
Development Resource Directory" for more information.
To begin the process, download the GPDI loan
application
here.
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