Kansas has received nearly $4.5 million from the U.S. Department of the Treasury to enlarge Kansas’ small business lending programs through the State Small Business Credit Initiative (SSBCI).
The seven-figure sum is the third and last payment of the state’s total SSBCI share of approximately $13.2 million. NetWork Kansas and its statewide network of 500 pro-business groups use the money to manage the Kansas Capital Multiplier Funds in association with the Kansas Department of Commerce.
The SSBCI makes federal money available to state-run programs that work with private lenders to increase the credit available to small businesses, with the understanding that at least $10 in new private lending will be produced from every dollar in federal funding.
As one of only 14 states to receive its entire SSBCI distribution, Kansas leads the country in private capital leveraged by these loan funds. For every federally funded dollar that’s gone to small businesses through the Kansas Capital Multiplier Funds, the state has leveraged $20 of private capital (as of Dec. 31, 2012).
Since the establishment of the Kansas Capital Multiplier Funds, NetWork Kansas has given $8.4 million to 55 businesses, which have raised an additional $146 million. Of those 55 businesses, 36 got loans through the Kansas Capital Multiplier Loan Fund, and the other 19 garnered investments through the Kansas Capital Multiplier Venture Fund.
“We are thrilled with the success of this program and the impact it is making in our state,” Corey Mohn, director of statewide programs for NetWork Kansas, said in a release. “Leveraging private capital investment of more than $146 million is a testament to the strength of our model and the resource partners that help Kansas entrepreneurs every day find access to the resources they need.”
Businesses can still apply to obtain funding through the Kansas Capital Multiplier Funds. Contact Corey Mohn at 785-296-6611 or cmohn@networkkansas.com.
For more information about NetWork Kansas, which has connected entrepreneurs and small business owners with crucial resources since 2004, go to www.networkkansas.com or call 877-521-8600.
