Loan Programs

Loan Programs

Since the development of a partnership between Mo-Kan and the U.S. Small Business Administration in 1982, Mo-Kan has provided commercial loans to area businesses in an effort to strengthen our communities through economic development. Loan programs offered by Mo-Kan are designed to be an affordable means in which businesses can access much-needed capital. Through many of the loan programs, Mo-Kan partners with a local lender and provides "gap financing" for owner-occupied businesses.


Many entrepreneurs that Mo-Kan is able to help are in search of ways to preserve their cash on hand for the use of working capital. Mo-Kan is able to fill the financing gap between what a local bank is able to provide and what the borrower has available for down payment. In many cases, the local lender provides 50% of the financing and Mo-Kan secures 30-40% of the project costs. All of Mo-Kan's loan products offer a fixed interest rate for the life of the loan. Fixed rates provide entrepreneurs the assurance they need that their payments will not increase over time, which in turn helps them gauge future growth opportunities.


Mo-Kan's primary objective for these loan programs is economic development through job creation. Local job creation directly increases net wealth in our communities. Along with the loan programs, Mo-Kan offers technical assistance to entrepreneurs needing aide in finalizing/analyzing their endeavors. Technical assistance is provided in many forms, ranging from financial analysis to something as simple as introducing the right contacts.


In addition to loan programs, Mo-Kan offers technical assistance to entrepreneurs requesting aid in analyzing their financial needs.


Business Loans in 2017:

2017 lending efforts have resulted in six funded loans, worth more than $1.3 million. The total project costs exceed $3.4 million. The investment in these companies located in Buchanan, Clinton, Gentry and Leavenworth Counties also resulted in the creation of 22 new jobs and 18 retained jobs.



Loan Programs

The Small Business Administration’s (SBA) 504 Loan Program is the cornerstone of MKDI efforts to provide financial assistance to area entrepreneurs. The 504 Loan can be used to finance a new business start-up, expand a current business or purchase an existing business.

Benefits of the program include:

Loan amounts ranging from $25,000 to $5,500,000

Fixed Asset financing only: real estate, building purchase or construction and/or equipment

Below-market interest rates

10- or 20-year term available

No balloon payments

Fixed interest rate for the life of the loan

Available in Missouri and Kansas

Refinancing now available

The SBA 7(a) Guarantee Program stems private sector lending by providing lending institutions additional security for qualifying loans. Depending on the size of the loan, a 75 or 85 percent guarantee is provided to the lender through the 7(a) program. The loan is provided to the small business by a bank of choice. The bank chosen is responsible for setting the terms and rate.

However, SBA sets a ceiling on the rates and has a maximum term limit for each use of loan proceeds, which, in turn, is beneficial to the needs of the small business/entrepreneur. Mo-Kan participates in the 7(a) program by providing technical assistance to the business/entrepreneur and packaging of the guaranty application.

Benefits include:

Guarantee provided to the bank financing your loan need: provides additional security for your bank and your business

No balloon payments

Reasonable term and rate of interest

Available in Missouri and Kansas

Since 1990, Mo-Kan has provided gap financing for small businesses through its locally operated and managed Revolving Loan Fund (RLF) program. The RLF was originally funded through the Economic Development Administration (EDA) and local funds. Since RLF’s inception, the program has been able to loan out over $3 million, six times the original investment. In addition to the monies loaned directly from RLF, the fund has leveraged over $14.5 million from private sector lenders and small business owners.

The Revolving Loan Funds include:

Loan amounts ranging from $20,000 to $200,000

Variety of loan uses: real estate, building purchase or construction, equipment, inventory, and working capital

Below-market interest rates

Terms up to 10 years

No balloon payments

Fixed interest rate for the life of the loan

Available in Missouri and Kansas

Mo-Kan Regional Council was awarded a Rural Business Enterprise Grant (RBEG) from USDA in fiscal 2010 to create a microloan fund available to small businesses located in rural areas. The loan proceeds are available to small and emerging private business enterprises located within rural populations in the Missouri counties of Andrew, Buchanan, Clinton and DeKalb (populations of 50,000 or less).

Benefits include:

Loan Amounts $2,500 - $30,000

Loan uses equipment, inventory, working capital, refinance

Loan Terms 1-5 years depending on use and cash flow needs of the business

Below Market Rates, Typically 4 to 6 percent