Now in it's second year, First City Development Corp. has a pool of about $190,000 that can be used for zero interest matching loans for small businesses.
Gary Bartek, administrator for First City Development Corp., said the non-profit organization offers loans to business owners in Leavenworth who are looking to expand or people wanting to start up new businesses.
"It's a good program," he said.
First City Development Corp. administers the Entrepreneurship Community, or E-Community, program in Leavenworth. The E-Community program was established by NetWork Kanas, which was set up by the state to facilitate small business growth and new business startups.
Bartek, who's also the economic development administrator for the city, said Leavenworth is one of 30 E-Communities in the state.
Money for the First City Development Corp. is raised through contributions made by local residents in exchange for tax credits offered by the state.
So far, First City Development Corp. has awarded one loan to a local business. That went to TenPenny Restaurant and Bar, which recently moved from a location at 10th and Pennsylvania Avenues to downtown Leavenworth.
"The board felt that was a good applicant," Bartek said.
He said First City Development Corp.'s governing board has eight members.
Loans from First City Development Corp. are capped at $45,000 under NetWork Kansas requirements.
Bartek said each loan is required to have a 40 percent local match. The local match can come in the form of a bank loan.
The terms of a loan from First City Development Corporation cannot exceed eight years.
Bartek said applications for loans from the First City Development Corp. can be find on the city of Leavenworth's website, www.lvks.org.