Cowley County, KS Small Business Micro-Loan Guarantee Program

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Cowley County, KS, US

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Type: Policy

Status: In effect

Source File:



The purpose of the Cowley County Small Business Micro-Loan Guarantee program is to stimulate self-employment throughout the county. It was established by funds received from the City of Arkansas City, the City of Winfield and Cowley County Community College.

Businesses applying for a loan guarantee under the program must meet all of the following criteria:

1. Be a for-profit entity.
2. Be located in Cowley County, Kansas.
3. Have five or fewer employees, including the owner.
4. At least 51% of the employees must meet the Cowley County LMI qualification prior to employment with the company. (See below.)
5. If the owner is the sole employee of the business, then the owner must meet LMI criteria (see page 3 for LMI guidelines) at the time of application.

The loan amount may be used as a loan guarantee to a Cowley County lending institution and may be used for either the creation or retention of jobs in Cowley County.

The maximum loan guarantee can be in the amount of $15,000.

Matching funds are highly encouraged in implementing the program.

The maximum term of a loan is as follows: Working capital - 5 years Machinery & equipment - 10 years Land & building - 15 years

Working capital loans can be created with up to an 18 month moratorium on the payment of principal if necessary. No moratorium on interest is allowed.

CCEDA charges no administration fees in connection with the loan guarantee.

Loan funds cannot be used for bail-out, financial restructuring or refinancing purposes.

Loan recipients are required to participate in a business training and/or Technical assistance program as made available by CCEDA in cooperation with Cowley County Community College.

In case of default, full recovery efforts will be undertaken to recover the balance of the loan.

Loan restructuring or changes in ownership of the business requires approval of the lender and the guarantor (CCEDA) if the loan is to be kept in place.

Every project and activity assisted with proceeds from the Cowley County Micro-Loan Loan Guarantee program must meet the program's national objective of low-and-moderate income benefit through the creation and retention of jobs in Cowley County. If the business fails to meet the national LMI objective, the lender will require immediate repayment of the loan. If the national objective is met but the job target is not obtained, the lender will require a prorated portion of the loan to be paid immediately.

Applicants for the program are required to complete the Cowley County Micro-Loan Loan Guarantee Application Form and return it along with a copy of the proposed Business Plan to the office of the Cowley County Economic Development Agency at P. O. Box 747, 22193 Tupper Street, Winfield, KS 67156.

Upon receipt of the application for the program, CCEDA staff will review the application to determine if all required information has been supplied. If additional information is needed, the CCEDA office will notify the applicant and/or participating bank of same.

Upon completion of the application copies will be distributed to the three member Cowley County Micro-Loan Review Committee. These individuals are members of the CCEDA Board of Directors.

The review committee will consider the application and recommend either approval or denial of the application to the entire CCEDA Board of Directors. The Board will then give final consideration and approval or rejection of the application. All financial information supplied in connection with the loan application will be considered confidential by the CCEDA staff, the review committee and the CCEDA Board of Directors, however the committee and staff have the right to discuss the application with the participating bank and its loan officers.

All rules, regulations and requests regarding the uses and procedures of the program will be complied with to the best abilities of the Cowley County bodies implementing the program.

The Cowley County Small Business Micro-Loan Loan Guarantee Program is not intended to replace normal conventional loan sources.

Other State and Federal requirements dealing with this program not contained in the above information will be enforced.

Cowley County LMI Requirements

Number of Family Members/Maximum Family Income to Qualify

  • 1 Person/$26,500
  • 2 Persons/$30,350
  • 3 Persons/$34,150
  • 4 Persons/$37,900
  • 5 Persons/$40,950
  • 6 Persons/$44,000
  • 7 Persons/$47,000
  • 8 Persons/$50,050