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Marshall County 0% Revolving Micro-Loan Fund

On 6.1.2020, The commissioners made a motion to develop a county loan fund with a start of $25,000 from the economic development county budget line item for the purpose of helping businesses recover from covid-19 setbacks and to strengthen local business.  Businesses that did not receive government money between March 1-June 30 will be prioritized. This loan is in Partnership Partnership 4 Growth for administration of the grant.  All final decisions will be made by the commissioners.

Eligibility:

 

  • Small independent business owners in Marshall County, or those wishing to relocate here. (If the business is moved outside of Marshall County, the loan is expected to be paid in full.)

  • Chain or franchise businesses will not be eligible.

 

 

Goals

  • The goal of the loan program is to help small businesses to purchase, enhance, improve, expand or assist in start-up expenses.

  • Income from the interest and fees and the principal payments would be reinvested back into the revolving loan fund to continue to help county businesses.

  • New businesses will especially be encouraged to develop a mentoring relationship from an existing business owner to help provide guidance and advice.

 

Uses

  • For tangible items such as: the purchase an ongoing business, purchase of real estate or buildings, remodeling of existing structure, purchase or repair of business equipment and tools, or inventory.

  • Not intended for business working capital, farming, housing or apartment complexes.

 

Terms

  • The maximum amount of the loan is up to $5,000.00 with a maximum two-year payback.

  • The interest rate charged will be 0.00% for the first year commencing with the date of the first advance.Any principal balance remaining after the first year will accrue interest at the rate equal to 1.0% above the U.S. Prime Rate with a floor of not less than 5.0%.

 

Application

  • Applications will be reviewed and loan awards will be made quarterly:February 28, May 31, August 31 and November 30 of each year.

  • Applications will be available on the MCP4G website for the public as well as the county website.

  • Loans are made upon approval of the loan application, based upon availability of monies in the revolving loan fund.

  • A $50.00 application fee will be submitted with each application to the Director of the Marshall County Partnership 4 Growth, P.O. Box 61, Marysville, KS 66508.

  • Members of the Marshall County Partnership For Growth Board, one Marshall County Commissioner, and 2 other Marshall County residents (one from each of the County Commissioner Districts not already represented) would review the applications and determine the approval of the loan.All decisions are final.

  • Applicant must be in good standing and current with any other loans they are obligated on.

  • Other documentation required to be filed with the application would be copies of income tax returns, personal financial statement and a current credit report.

  • Copies of cost estimates of the project or purchase agreements are also to be submitted.

  • Collateral for the loan would be personal guarantees signed by the borrowers.

  • Each qualified loan recipient is limited to one loan at a time.Following the repayment of the original loan, business owner may reapply for an additional loan subject to the availability of funds.

  • Priority may be given to small businesses that are tying to recover from the covid-19 setback.

 
Please print out the Application and submit to MCP4G, PO Box 61, Marysville, KS 66501 or scan to choosemarshallcountyks@gmail.com and request a confirmation of receipt.