THE CITY OF HOISINGTON

The Hoisington Area Entrepreneurship Community loan program was created through the Kansas Center for Entrepreneurship Tax Credit Program and applied for by the City of Hoisington with designation being awarded in 2011.

​

The purpose of the E-Community program is to provide low or zero interest loans to anyone wishing to start, purchase or expand a business in the Hoisington Area (further defined as properties located within Hoisington’s Unified School District 431.) The loans are meant to be used in conjunction with financial institutions, private investment, and Network Kansas partners as a “final piece” to complete the puzzle or “fill the gap” of financing a business start up or expansion. 

​

Example:  

Capital Needed      $60,000
Private Funds       ($10,000)
Financing Needed   $50,000

​

Of the $50,000 remaining to be funded, no greater than 60% ($30,000)can come from E-Community Funding, leaving $20,000 to be to be applied for from local banks or other public funding organizations.

 

Guidelines:

Qualification Criteria:

• Anyone wishing to start, purchase or expand a business in the Hoisington Area

• Preference will be given to projects that create quality jobs, increase economic benefits and improve property values and design

• Use of Funds:

• Purchase of business equipment

• Purchase of business inventory

• Purchase of real estate

• Working capital

• Existing inventory

Fees:

• There is no application fee for this program

Repayment:

• 7 year maximum term—length will be determined by amount borrowed

• No penalty for early repayment

• Other

• This is a $45,000 maximum amount available per applicant business.

• Funding is typically provide with low interest rates.  Currently, the rates are not permitted to fall below two percent.  Often rates are structured to match those of acceptable Network Partners (a list is available on the application)

• Complete application & detailed information is available for download here: In PDF Format or by calling the City of Hoisington at (620)653-4125 or the Hoisington Chamber of Commerce at (620)653-4311.

 

The Loan Process

A financial Review Board will use a scoring rubric for all applications made for funds through the E-Community Loan Program.

Scoring Criteria:

• Meeting Match Requirements From Public Sector Resource

• Explanation of the Entrepreneur’s Need for the Funding and Proposed Use of Funds

• Projected Sales or Sales Growth

• Capital Provided by the Entrepreneur and Third Party Lenders

• Local Support for the Project (Community Organizations or Leaders)

• Involvement of Network Kansas Partners in Project

• Description of How Funds Will Add Resources, Jobs, Tax Revenue and/or Other Benefits to the Community

Application:

Hoisington E-Community Application: In PDF Format

Additional Info:

Loan funds may not be used for:

• Paying off or refinancing existing debt

• Salary or owner’s draw

• Payroll taxes

• Personal vehicles

Businesses That Do Not Qualify:

• Non-profit organizations

• Academic institutions

• Gambling concerns

• Floor planning concerns (i.e. wholesale auto inventory financing)

• Speculative concerns

• Lending or investment institutions

• Multilevel marketing or pyramid sales

Applicants who are not eligible:

• Convicted of felony offense

• Past due on school loans

• Past due on child support payments