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Barber County Enterprise Zone   Micro Loan Program  
 
Barber County Enterprise Zone
The 1982 Kansas Legislature passed legislation creating a Kansas Enterprise Zone program "to expand and renew the local economy and improve the social and economic welfare of residents of economically distressed zone areas located within the cities of Kansas."
 
The program provided for qualified businesses, located in a city within an approved Kansas Enterprise Zone to take advantage of several incentives, including Sales Tax Exemptions, Job Creation Tax Credits, and Investment Tax Credits.  In 1986 the Statue was amended to allow counties to participate in the program.
 
The 1992 Legislature enacted a new Kansas Enterprise Zone Act.  The Act provides for a base level of incentives to businesses throughout the State and enhanced incentives on a county by county basis.
 
The incentives include
  • a Sales Tax Exemption,
  • a Job Creation Tax Credit,
  • and an Investment Tax Credit.
The qualification criteria for these incentives is determined by the type of business (manufacturing, non-manufacturing, or retail), location of the businesses within the State (metropolitan county, non-metropolitan county, or designated non-metropolitan business region), and the number of net new jobs created.
 
Barber County is designated as a non-metropolitan Enterprise Zone. 
  • For basis manufacturing businesses, a job creation tax credit of $2,500 per job created is available.  In addition, the state grants an investment tax credit of $1,000 per every $100,000 investment.  They also provide a sales tax exemption of all equipment and machinery for the business. 
  • The job Expansion and Investment Tax Credit Act of 1976 provides business and job development tax credits for non-manufacturing and retail business.  Incentives include a Job Creation Tax Credit of $100 per net new job, and an Investment Tax Credit of $100 Investment tax credit of $100 per $100,000 of investment.
For more information please contact
Micro Loan Program Go to top of page
The goal of the Micro Loan Program is to aid start-up or expanding businesses that hire persons in the low and moderate income level through creation or retention of jobs.
 
If a person establishes his or her own business with no other person being hired, then the person receiving the assistance must be a low to moderate income person at the time of the assistance.  If a business expansion is proposed, the total employment must not exceed five.
 
For the purpose of being considered a created job, a job must be a new part-time or full-time job enabling the person to operate an existing "sideline" activity to become their principal occupation.  Also, in the case of formation of a micro-enterprise expected to involve several positions, it would not be necessary that the owner be a low and moderate income person if at least 51% of the jobs overall, computed one full-time equivalent basis, will be held by, or available to low and moderate income persons.
 
In cases where assistance is provided to an existing micro-enterprise and the claim is that one or more jobs are being retained, documentation that the job(s) would be lost if unassisted, must be fulfilled.  Low to moderate income benefit must be documented for retained jobs according to prescribed guidelines of the Kansas Department of Commerce & Housing Community Development Division.
 
Said loan may be used for infrastructure improvements, land acquisition, site preparation, building construction or renovation, machinery, equipment, lease payments, inventory, payroll, and working capital items.
 
Community Development Block Grant (CDBG) funds may not be used for bail-out or financial restructuring.  The projects when funded must lead to the creation or retention of permanent jobs in Barber County or more widely covered in the State of Kansas.  The loans awarded shall have a maximum term of the following categories:
  1. working capital for one to five years,
  2. machinery and equipment for a period of five to ten years, and
  3. land and buildings for a period of no more than ten years.
If the loan project involves more than one asset class, the term shall be based upon a weighted average.  Working capital loans may be given an three-month interest only and a five year pay out.  The rest of the loans will have the three months interest only from the term of the note.
 
Micro Loan funds may be used-in such a way to provide jobs and business or as a loan along with a cooperating bank in Barber County.
 
The maximum loan size of the Micro Loan portion shall be $15,000 to be used by an entity with five or fewer employees, one or more of whom owns the business.  The Micro Loan portion of the loan obtained through the bank will bear interest of two points below New York prime rate at the time the loan is made and will be adjusted annually on January 1.
 
All loans are made by application with a cooperating bank and both Bank funds and Micro loan funds will make up the loan amount.  Micro loan funds will not be loaned out separately.
 
If the loan recipient fails to meet the national objective, the Micro Loan Committee will require immediate repayment of the CDBG land funds.  If the national objective is met but the job target is not attained, the micro Loan Committee may require a prorated portion of the loan repaid immediately.  If the loan recipient defaults on a loan, the Micro Loan Committee must undertake collection efforts.  Loan restructuring or change of ownership requires the approval of the Micro loan Committee and the Barber County Commissioners.
 
The banks of Barber County have stepped forward as partners in the program.  Applications are available at the Barber County Economic Development office in Medicine Lodge, KS and the Great Plains Development office in Dodge City, KS. 		 
Go to top of page Barber County Development, Inc.
215 S. Iliff (Hwy 281) / P.O. Box #4, Medicine Lodge, KS 67104_0004
Phone: 620_886-3988   Email: tad@barbercounty.net		 Go to top of page
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