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How to Get a Small Business Loan in Kansas
June 09, 2022
Kansas-Business-Loan

How to Get a Small Business Loan in Kansas

There are more than 250,000 small businesses in Kansas. The most recent data from the U.S. Small Business Administration (SBA) shows these businesses employ 601,550 workers and comprise 50% of the workforce in the state. Many of the small businesses in Kansas are industries such as professional, scientific, and technical services, construction, retail trade, and real estate.

Whether you own a small business in the Sunflower state or have plans to open one, small business loans can help you meet your goals. We’ll dive deeper into small business loans in Kansas in this post.

How to Use a Small Business Loan in Kansas

Small business loans are flexible, meaning you can use them to cover a wide array of expenses to run or grow your business. Some of the most common uses for Kansas small business loans include:

  • Startup costs
  • Commercial real estate
  • Debt consolidation
  • Refinancing
  • Equipment
  • Inventory and supplies
  • Payroll
  • Marketing
  • Insurance
  • Taxes

Types of Small Business Loans in Kansas

If you’re searching for business loans in Kansas, there are various options available to you. While some come with strict eligibility requirements, others are easy to qualify for, even if you don’t have the best credit.

Small Business Loans

Banks, credit unions, and online lenders offer small business loans. You might get approved for bank financing with low rates and flexible terms if you have good credit. The caveat, however, is that you’ll likely need to wait a few weeks or even months to receive your funds.

However, you could apply for funding from an alternative lender, which may allow you to receive your funds faster.

SBA Loans

SBA loans are partially guaranteed by the U.S. Small Business Administration and distributed by SBA-approved lenders. The SBA 7(a), the most popular SBA loan, offers up to $5 million in funding that can be used for real estate, working capital, equipment, and more. You can also choose from other SBA loans like SBA 504, SBA Express, and SBA disaster loans.

Equipment Loans

Chances are, you need to buy or lease equipment for your business. Depending on the lender, you may cover 100% of its cost with an equipment loan.  The equipment will serve as collateral, so if you default on your loan, the lender will have the right to seize it. Fortunately, equipment loans are easy to qualify for.

Commercial Real Estate Loan

Also known as a commercial mortgage, a commercial real estate loan can help you buy land or property for your business. Depending on your industry, this might be an office, garage, warehouse, restaurant, or hotel. While terms for commercial real estate loans vary, they typically range from five years or less to 20 years.

Merchant Cash Advance

If your customers use debit and credit cards to pay for your products or services, a merchant cash advance (MCA) is worth considering, especially if you need fast cash. You’ll receive the funds upfront and pay them back with a percentage of your sales plus any fees. Be careful, as the costs can add up quickly if you go this route.

Resources for Kansas Business Owners

As a small business owner in Kansas, you may find these resources beneficial.

  • Kansas Business One-Stop: Kansas Business One-Stop can provide you with the information you need to organize, maintain, and grow a business in Kansas. You’ll learn how to set up a business entity, file annual reports, pay taxes, and more.
  • Kansas Association of Certified Development Companies: This organization helps entrepreneurs, and small business owners in every county in Kansas find and obtain financing. It also provides down payment assistance and business plan advice.
  • NetWork Kansas: NetWork Kansas strives to connect entrepreneurs to the right resources. It hosts classes and networking events. In addition, NetWork Kansas offers matching loan programs.
  • Startup Grind Wichita: Startup Grind Wichita puts on in-person and virtual events to teach, inspire, and connect entrepreneurs. There are thousands of members as well as global and local sponsors.

Conclusion: Build a Successful Business with Kansas Business Loans

Small business loans in Kansas can come in handy, no matter your industry. They’ll provide you with the funds you need to start or grow your venture with success. Just make sure you choose the right loan products for your particular budget and needs.

Fora Financial

Editorial Note: Any opinions, analyses, reviews or recommendations expressed in this article are those of the author's alone, and have not been reviewed, approved, or otherwise endorsed by any of these entities.

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Fora Financial is a working capital provider to small business owners nationwide. In addition, the Fora Financial team provides educational information to the small business community through their blog, which covers topics such as business financing, marketing, technology, and much more. If you’d like to see a topic covered on the Fora Financial blog, or want to submit a guest post, please email us at [email protected].