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MicroLoan Programs

A variety of MicroLoan programs exist. Often banks are reluctant to make very small business loans, which is where these programs come into play. Often these loans require bank rejection letters accompanying the application. The goal of these loans is to make small loans when traditional bank financing is not possible.

BLX Loan Microloan Program - Is part of the SBA's Community Express Loan Program. This specific microloan is for amounts of $5K to $25K and is typically an unsecured loan at prime +4.75% for seven years. The program specifically targets women owned, minority owned, and low income owned businesses. A $350 loan application fee is required and is deducted from the loan proceeds. Requires technical assistance, which can be obtained at the KU-SBDC. For more information, visit http://www.blxonline.com in the "community express" section. You will also need to contact your KSBDC consultant to complete the "technical assistance" provider portion of the application.

Innovative Bank Microloan Program - Is also part of the SBA's Community Loan Express Program. Loans are offered in denominations of 5K, 10K, and 15K. A $450 loan application fee must be submitted with application. Also requires technical assistance, which can be obtained from your local KSBDC office. For more information, contact your local KSBDC center.

Kansas USDA - Administers the USDA's business development program for rural communities. For more information, visit their website at http://www.rurdev.usda.gov/ks/cbp-biz.htm

Certified Development Companies - Some CDC's offer microloan programs and others do not. For a complete listing of CDC's in Kansas, feel free to visit http://www.KACDC.com.

KS Rural Development Loans - Availability starting January 1, 2005. Program was created with the Kansas Economic Growth Act of 2004. Business must be located in a city with fewer than 50K. Loan parameters vary by region. For more information, contact your local KSBDC office.

Go Connection - Administers the SBA's microloan program in many counties in Northeast Kansas. Visit their website at http://www.goconnection.org.