
The Junction City Area Chamber of Commerce Economic Development is submitting an application for Geary County to join the Entrepreneurship Partnership of Kansas.
According to a Chamber news release, as an E-Community, Geary County will partner with Network Kansas to establish a locally administered revolving loan fund to assist entrepreneurs with capital, increase access to resources available to entrepreneurs and existing businesses, to initiate activities to generate entrepreneurial development, and to participate in a statewide partnerhsip with other E-Communities.
Local E-Community revolving loan funds are funded by awarding tax credits to donors. Economic Development will apply for $125,000 in tax credits to create a local account of approximately $166,000. A leadership team and financial review committee from the EDC advisory committee will approve all loan requests and loan terms.
For-profit businesses can use loan funds for startup, business expansion, purchasing an existing business, working capital and inventory. In addition to small business loans, the funding can be used for entrepreneurship training / education for businesses at different stages of growth, youth business plan competitions and other entrepreneur-related activities.
If Geary County is selected to join the E-Community network, tax credits are available by donation to the Kansas Center for Entrepreneurship in Andover. Donars receive a 75% state income tax credit for their donation. A minimum tax credit donation is $250 and there is a cap of $50,000 maximum donation. The proceeds of all tax credit donations that are part of this application will be utilized locally for entrepreneurship activities.
At this time only committments to purchase tax credits are being requested. The Junction City Area Chamber of Commerce must receive verbal commitment for at least 50% of the $125,000 in tax credits by Aug. 1 as part of the application process. Actual donations will be collected after Nov. 1.
Presently there are more than 40 E-Communities in Kansas including Riley, Wabaunsee and Pottawatomie counties.
Benefits of E-Community participation are local decision-making power, gap-financing assistance, match of up to 150% of the business contribution, up to $45,000 available per project and repaid funds return to the local account for reuse. For information contact the Chamber Economic Development at 785-762-1976.