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A Guide On How To Get A Small Business Loan In Kansas

During this pandemic, many small businesses have suffered financially, especially if they were not classified as “essential services”. In this guide, you will discuss how to get a small business loan in Kansas. We will also look at the top financing options available to you as a small business owner in Kansas.

At a glance Out of all the businesses in the state of Kansas, about 97% of those are considered to be small businesses. Out of the 50,000 plus companies, 49,000 of those have around 100 or fewer employees, which means they fall into the small business category. The average loan amount is around $13,000 to over $1.2 million, but this number can vary depending on the plan and the loan provider you select. 

The Top Three Kansas Small Business Loan Options 

In this section, we discuss, in detail, the best three loan options for small businesses in Kansas. 

The U.S. Bank 

This bank is one of the best providers of Kansas small business grants. The U.S. bank offers two different kinds of loans. The Paycheck Protection Program (PPP) loan and the Small Business Administration loan. Also known as the SBA Disaster Assistance Loan. 

The first one is designed to help you cover the payment of your workforce and other such expenditures. Owners have until May 31st of this year to use this credit. This loan is a part of the Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act.

According to this act, lenders can offer around $290 million in payment. Furthermore, they can have a pardon policy for loans that are about $150,000 or lower.  The second loan option applies to companies affected by COVID with 500 or fewer employees. This loan type may be used for acting investments and covers regular driving costs. 

Emprise Bank 

This particular bank has a lot of experience with SBA loans. They have four finance possibilities that include a 7(a), a Small Loan, an Express, and a 504. These are some of the basic proposals provided by the SBA. 

A 7(a) loan is the leading choice suggested by the SBA. The amount offered depends on the sum, ie, a $150,000 loan would have a guarantee of 85%. Any amount greater than this has a 75% guarantee. The small loan offers a $5,000 minimum. 

The Express loan is the fastest one available with a 36-hour reply. The max loan amount is $350,000 and the max guarantee is 50%. The turning outlines of balance are up to 7 years with additions allowed by the outset. 

The 504 or CDC plan gives an extended duration period. It also has a  permanent funding ratio of up to $5 million for key holdings. These holdings stimulate corporate expansion and work creation.

United Midwest Savings Bank 

Not only is this a great bank for Kansas, but it also ranks 25 in the country’s list of top SBA lenders. It’s also the 8th biggest creditor in loan figures and 12th leading in cash size. They have two different options for loans $150,000 or lower, and loans $150,000 or more.  

For larger loans, the bank has a team of eight SBA lenders. These lenders have dealings in hospitality, insurance, medical, dental, veterinary, and more. The larger loans are meant for businesses that want to buy a new practice/building or upgrade their work tools. 

In response to COVID, the bank also offers a PPP much like the U.S. Bank.

Institution

Type of Loans

Amounts 

Term

Interest Rates.

U.S. Bank

PPP &

SBA Disaster Assistance/

COVID-19 EDIL loan. 

Up to $290 million in loans and a $150,00 forgiveness plan. 

$150,000 or lower.

Until May 31st, 2021.

6.82

Emprise Bank

7(a)


Small Loan Express 

504 Loan



Around $150,000 

$5,000 min.

$350,000


Ratio up to $5 million or less.

Around 7 years for the small loan.

 5-25 years.

75-85%



50% 

90%




Overall:

5.13

United MidWest Savings Bank

Small loans

And PPPs.

$150,000 or less.

$150,00 or more

N/A

6.38

Top Online Kansas Small Business Loan Options:

It’s important to remember that there are alternatives to regular banking. Lenders who have an online presence are gaining ground. Here are some providing services to Kansans.

1. Ondeck 

Ondeck is a SBA online lender. They offer two loans: short-term and revolving lines of credit. To apply for their loans you must have been in business for a year, and must have a FICO score of 600 and a yearly income of $100,000. You also need to hold a business bank account. 

OnDeck does not offer a PPP loan. Their short-term loans provide quick cash when your business needs it most.  

OnDeck provides loans of $5,000 to $250,000. They have settlement standings of up to 18 months and automatic daily/weekly payment. OnDeck also has many benefits for your small business:

 

  • Same Day Funding - it’s possible to have your funds put into your account by 5:00 pm the same day.
  • Prepayment benefits - If you pass for the 100% prepayment, you can pay off your debt in full. You can also have all leftover benefits dismissed without any fines or charges.
  • Loyalty benefits - if you already work with OnDeck, then any lingering interest you have is forgiven, especially if you take on a new loan for your small business.
  • Business Credit Building - Ondeck reports your payments to certain bureaus.
  • Predictable/Fixed payments - reimburse the same amount throughout your term. This is to help better manage your cash flow.
  • Transparent Pricing - need an idea of your term’s cost? Use OnDeck’s SMART Box Capital Comparison Tool.

2. Lendio 

Lendio has been helping people with their business loans for over ten years. They are offering the PPP loans as a result of the pandemic. It takes only 15 minutes to apply with no fee, requirements, and it will not affect your credit.  

Lendio presents a list of its lenders and will help you to pick the best one. Once you get approved by your lender, you can receive the funding you need in 24 hours or less. 

Features of Lenadio: 

 

  • Lendio offers a loan amount of up to $5 million.
  • The time to access funds is around 1-2 months following loan authorization.
  • The loan term is up to 30 years.
  • Interest Rate - Prime plus
  • They also offer 7(a), 504, and Express loans.
  • 7(a) helps you to buy property, cover building expenses, and more.
  • The 504 loan is a bit more challenging. If you need money for a new venture, a lender covers 50%, and the SBA covers 40%, while you cover the 10% remaining ASAP. You’ll likely have to guarantee 20% of the loan. Save this loan for buying a commercial property, renovations,  or tools.
  • The Express loan is when you need cash and need it fast. These loan applications are processed within 36 hours. Yet, it still takes about 30 days to get the funds. The terms for this loan range from 5 to 25 years.

3. Smartbiz 

This creditor offers the 7(a) loan and a PPP. If you need a low costing and long-term loan terms, then this lending platform may suit you. Smartbiz doesn’t give out loans. Instead, they have a matching system. 

Smartbiz has a huge network of top SBA banks and investors for you to draw from. Because of this, you don’t need to fill out a full application with them as they will not be authorizing your loan.

If you have poor credit, haven’t been in business for two or more years, don’t have a credit score of 650, or don’t have a business credit score of 150, you may not qualify for a traditional loan. Smartbiz also requires a lot of documentation, which will make the process longer. Smartbiz offers debt refinancing, working capital, as well as loans for commercial real estate.

Terms and Fees:

  • The term lengths are around 10 years 
  • The average lending amount is $30,000 to $350,000
  • Rates range around from 3.75% and 2.75%
  • 8% in added fees like packaging, referral, bank closing cost, and guarantee 
  • APR: 9-11%

Pros and Cons:

  • Rates are cheaper, exceptional terms/fees
  • Extra fees
  • Request procedures are slow 

Additional Kansas Small Business Financial Resources 

A third option to look into is the state government’s financial aid resources. Kansas has a Small Business Development Center Financing Options website. It's run by Fort Hays State University.

Farmers Home Administration or the Farm Service Industry 

This program offers loans and aids to farmers and ranchers. This type of loan interest rate ranges from 1.375% to 2.750%. The FSA offers an online pdf guidebook to the different kinds of loans and plans that they offer. 

Leasing Companies 

Companies like these can help a small business obtain loans for any machines or tools you could need for your own business. 

Factoring Companies 

A factoring company will buy out another company’s invoices at a discount, which helps the owner to get cash sooner. You would move your account over to the other company, thus exchanging cash for payment.

Other Resources for Kansas Small Businesses

The resources mentioned here are programs that offer coaching and mentoring. There are many programs available to you if you are a young entrepreneur or are in college as a business major.

Wichita State University 

This university has a small business development center located on its campus. They also offer this resource on their website. The center facilitates small business training and offers webinars that teach you about advertising, taxes, marketing, and research.

Kansas Angel Investors 

This Department of Congress program brings together small businesses that recommend angel investors and offers networking opportunities. This is for businesses that are in their early stages of investment. 

The KAITC program works under the Kansas Angel Investor Tax Act. According to this ACT, an investor is allowed a yearly 50% tax credit on their cash investment of up to $50,000 per business.  These “Angel Investors” act as mentors for young entrepreneurs.  

How to Prepare for a Kansas Small Business Loan: 

To be in the best position to qualify for an affordable small business loan in Kansas, consider these points:

  • Be in business for one or more years
  • Have a good credit score
  • Have no existing debt
  • Be prepared to show that your business is profitable 
  • Must show operations within the USA
  • Ensure your business meets SBA size standards
  • Have documented proof that you need the loan

The Bottom Line

There are plenty of resources that a small business owner can look into to help them get a loan. Small business loan requirement in Kansas, can vary from lender to lender so make sure you read the fine print.   

Banks have specific loan types for these small businesses that have been affected by COVID or other types of natural disasters. There are online companies that do offer longer periods than the banks do. It really depends on the amount you need and your long-term financial plan. Consider all your options before deciding which lender to settle with.