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 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 percent of the financing and Mo-Kan secures 30 to 40 percent 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 plan 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 and improves the tax base in the Mo-Kan communities. Along with the loan programs, Mo-Kan offers technical assistance to entrepreneurs needing aide in finalizing and analyzing their endeavors. Technical assistance is provided in many forms, ranging from financial analysis to networking basics.
Lending efforts in 2018 resulted in six funded loans, worth more than $5.7 million. The total project costs approached $9.5 million. The investment in these companies located in Andrew, Buchanan, Caldwell, Jackson, and Platte Counties also resulted in the creation of 84 new jobs and 22 retained jobs.
An Example of Business Financing in Action
In 2017, Mo-Kan worked with Susan Campbell of SJC Marketing, to secure funds to purchase a building and expand her current business. SJC Marketing is a full-service marketing, communication and content creation company located on North 36th Street in St. Joseph. Campbell, who now serves as the business’s president and CEO, created SJC Marketing in 2005. She hired her first employee her second year of business.
Campbell now has a total of 15 employees with plans to hire four more in the future. Campbell brings more than 20 years in marketing and professional communications into the business. Mo-Kan is proud to partner with Campbell and looks forward to her continued success.