We’re all used to reading about major corporations receiving incentives to relocate, hire employees or expand their facilities. There are programs out there, though, for small businesses.
In Shawnee, for example, officials are introducing an incentive for companies with 50 employees or fewer. Through its Shawnee Entrepreneurial & Economic Development (SEED) program, the city will pay part of the fees associated with three kinds of SBA loans: 7(a), 504 and microloans.
“It essentially will let them keep more of their capital,” said Andrew Nave, executive director of the Shawnee Economic Development Council.
The SBA itself had been waiving these fees, but that exemption ended more than a year ago. After talking with local lenders, Shawnee officials got the idea to step in and cover the fees associated with the portion of the loan guaranteed by the SBA.
Eligible companies can’t generate more than $5 million in gross annual revenue. They need to be based in Shawnee, or they need to commit to buying or leasing space there.
Participating companies also must agree to create two new jobs, or buy or construct a commercial building in Shawnee. The program includes a clawback rule in case a company doesn’t live up to those requirements.
SEED also offers a forgivable loan for companies that create at least 10 new jobs there and pay the average county wage.
The SEED program is funded by an impact fee that Deffenbaugh Industries pays Shawnee for keeping the company’s landfill there. The fee could eventually generate nearly $3 million per year. Part of that money will go to economic development, and part of it will be spent on city infrastructure.
For more information about SEED’s loan fee payment program, visit www.shawnee-edc.com or call (913) 631-6545.
