About the Program

The Douglas County E-Community Loan Program is a collaborative effort among the three communities of Baldwin City, Eudora, and Lecompton, and Douglas County. The program was created in order to assist aspiring entrepreneurs and current small business owners with creating new, successful, business ventures or expanding their current operations in the communities of Baldwin City, Eudora, and Lecompton.

The Douglas County E-Community Program was created with the assistance of the Kansas Center for Entrepreneurship, also known as Network Kansas. Network Kansas, established by the Kansas Economic Growth Act of 2004, mission is "to promote an entrepreneurial environment throughout the state of Kansas by establishing a central portal that connects entrepreneurs and small business owners with the right resources - expertise, education, and economic resources - when they are needed most."

How the E-Community Program Works

The Douglas County E-Community loan program provides gap financing for new and existing entrepreneurs. Gap financing is the amount of money needed when conversational lenders are unwilling to assume 100% of the risk of lending. Per state law, in order to access funds from the Douglas County E-Community loan program, applicant must secure at least 40% of the gap financing needed from either a bank, other lending institution, or some other public fund, such as the Douglas County Revolving Loan the Eudora Downtown Business Grant, or some other public funding mechanism.

Douglas County E-Community Funding Example

Assume the applicant needs a total of $100,000 for business start-up costs. Also assume the applicant has $15,000 of their own capital and the bank will loan them $45,000.

The remaining $40,000 needed to finance the project is known as the "gap". Of the remaining $40,000, the NetWork Kansas funding partner must provide at least $16,000 (40%). This then leaves a final gap of $24,000 (60%) which can be provided by the Douglas County E-Community fund.

Douglas County E-Community Guidelines

Who Qualifies?
Anyone wishing to start, purchase, or expand a business in Baldwin City, Eudora, or Lecompton.

Use of Funds:

• Purchase of business equipment, including vehicles
• Purchase of business inventory
• Purchase of real estate
• Real estate improvements
• Collateralize working capital

Funds May Not Be Used For:

• Paying off or refinancing existing debt
• Salary, owner's draw, or payroll taxes
• Personal vehicles
• Accounts receivable financing
• Multilevel marketing or pyramid sales

Businesses That Do Not Qualify:

• Non-profit organizations
• Academic institutions
• Gambling concerns
• Speculative concerns
• Lending or investment institutions

Fees:

• $50.00 non-refundable application fee

Repayment:

• 1% over New York Prime rate, fixed for the loan term.

Loan Terms:

• Terms will match up to the first mortgage or first lien's notes terms.

Collateral:

• All loans will be collateralize.

Application Packet

Douglas County E-Community Application Packet