Industrial Revenue Bonds (IRB) are securities issued by cities and counties to provide funds for creditworthy companies. They are one of the most popular and cost-efficient methods of financing the purchase of land, construction of a new facility, improvements to an existing facility and /or equipping a business. This low-interest, fixed-rate financing mechanism can provide up to 100% of a business’ finding needs with the only equity requirement being the cost of the bond issuance’s fees. An IRB can also include a property tax exemption.

Community Development Block Grants may also be used by a business to acquire land or buildings, construct or renovate facilities, purchase machinery and equipment or for working capital. Companies can apply for up to $35,000 per job created with a maximum limit of $750,000. At least 51% of the jobs created must be for new hires meeting low- to moderate-income guidelines. CDBG economic development funds can also be used to finance infrastructure improvements to assist companies creating jobs.

Low interest loan programs are available through the e-Community funds administered by the McPherson Chamber of Commerce (E-Community loan fund program), Main Street McPherson, UDSA-Rural Development, the South Central Kansas Economic Development District, and NetWork Kansas’ Start-Up Kansas program.

The SBA has a number of financing programs. The SBA 504 debenture program is a g-term financing tool that provides long-term, fixed rate financing for major fixed assets the typical breakdown of a 504 loan is 50% private financing, a 40% 100% SBA-guarantee and a 10% equity contribution from the business.

The SBA 7(a) loan guarantee program is a guaranty backed by the SBA on a portion of the loan. 7a guarantees can be used for working capital or fixed assets. The SBA has loans that are designed for a number of business financing requirements and demographic groups.