E-Community Program Description
Background:
The Pottawatomie County E-Community program has been created through a Kansas Center for Entrepreneurship tax credit program and is a cooperative effort between the Pottawatomie County Economic Development Corporation and local and state government entities and organizations. The purpose of the program is to encourage entrepreneurial activity in Pottawatomie County focusing primarily on job creation and retention.
About:
Qualifying entrepreneurial projects may include startup businesses, as well as existing business
purchases and/or expansions. Funding applications may be in the form of a grant or a low interest loan request.
The minimum loan request is $3,000 with a $40,000 maximum amount available per applicant business. It is anticipated that requests for grants will be scrutinized closely and primarily reserved for projects that demonstrate a high likelihood of success. Low interest rate loans are the more common funding mechanism and will require a personal guaranty agreement.
E-Community Guidelines: Who Qualifies:
• Anyone wishing to start, purchase or expand a business in Pottawatomie County.
Use of funds:
• Purchase of business equipment • Purchase of business inventory • Purchase of real estate
• Working capital • Existing inventory Fees:
• $50 Application Fee Repayment:
• 12 to 60 month principal and interest • No penalty for early repayment
Loans Funds May Not Be Used For: • Paying off or refinancing existing debt • Salary or owner’s draw
• Payroll taxes • Personal vehicles
Business 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 Pottawatomie County Economic Development Corporation 1004 Lincoln Avenue/PO Box 288
Wamego, KS 66547
Ph: 785.456.9776 Fax: 785.456.9775
Application:
The application should be completed in full. The following list of items should also be considered for inclusion with the application. Note that applications presented with the most substantial amount of pertinent information should be actionable in a timelier manner by the board.
Items to include with your application:
Business plan
Financial reports and Performa balance sheets and income and expense projections.
Resumes and 3 references for the principals of the business
Employment projections
Note: the Pottawatomie County Economic Development Corporation maintains a contract with a small business consultant from the Washburn Small Business Development Center. This contract enables new and existing businesses to access these services at no cost. For more information about this opportunity, please contact the Pottawatomie County Economic Development Corporation.
Review:
Completed applications will be reviewed and scored by the Financial Advisory Board within 30 days of receipt and formal interview will be scheduled with the applicant.
In the formal interview, advisory board members may ask specific questions that pertain to the following criteria:
• Explanation of the applicant’s need for funding and the specific purpose of the funding • Projected sales and employment estimates
• Matching funds from Network Kansas partners (at least 40% match required)
• Additional funding from public and private sources (i.e. banks, personal investment) • Local support for the project through cooperation of organizations and community leaders • Community benefits of the project
• Involvement of Network Kansas resource partners in the project
• Description of how funds will be utilized to add resources, enable the business to add jobs, increase tax revenue and/or improve the quality of life Pottawatomie County.
It should be noted that this program is in its infancy and, as such, the application process will be a work in progress and should be expected to be fluid in nature.
E-Community Funding Example
Assume the applicant needs a total of $100,000 for business startup costs. Also assume the applicant has $10,000 of their own capital and the bank will loan them $40,000.
Of the remaining $50,000, the NetWork Kansas funding partner must provide at least $20,000 (40%). This then leaves a gap of $30,000 (60%), which can be provided by the E-Community fund.
NetWork Kansas funding partners include, but are not limited to*: • Certified Development Companies
• SBA 504, SBA 7a
• Revolving Loan Program (RLF) • Microloans
• Regional Foundations (RBDTC Program) • Kansas Main Street Program
• Kansas Department of Commerce-Value Added Loan • Community Foundations
• USDA
E-Community Financial Advisory Board
The Pottawatomie County E-Community Financial Advisory Board is tasked with making decisions with regards to application approval and subsequent funding. The board will review applications deemed complete by the local managing agency (Pottawatomie County Economic Development Corporation) and a follow-up interview will be scheduled with the applicant(s) receiving preliminary approval.
During the interview, board members will rate the applicant using the following rubric, which places emphasis on certain criteria as indicated. Please use the table below to guide your decisions when preparing the application.
Criteria
Strength
(1-5)
Weight
(% of total)
Weighted
Score
Financial soundness 25 Owner/operator experienceand business plan 15
Potential economic impact 20
Owner/3rd party funding 15
Future prospects for growth 15
Quality of life impact 10
TOTAL
Applications approved for funding by the board will be forwarded to the Pottawatomie County
Economic Development Corporation. The Corporation will notify the applicant of the approval, collect any additional information required and forward the application with a check request to the Kansas Center for Entrepreneurship for processing.
the NetWork Kansas Business Trakker software database for semi-annual follow-up by a NetWork Kansas Counselor.
The Pottawatomie County E-Community Financial Advisory Board will meet as needed at the
Pottawatomie County Economic Development Corporation offices at 1004 Lincoln Avenue in Wamego, Kansas.*
*A quorum of Financial Advisory Board members must be present to take action.
Pottawatomie County E-Community Financial Advisory Board Members:
Ken Werner Vice President
Kaw Valley State Bank, Wamego Dan Peters
Vice President
Morrill and Janes Bank, Onaga Dwight Faulkner
Vice President
First National Bank of Wamego Jim Moore
President
Farmers State Bank, Westmoreland Kevin Gray
Owner
Custom Wood Products, St. Marys Clark Balderson
Owner
New Dymax, Wamego Karl Klein Business Consultant
