As someone who works in the banking industry, Dan Gutshall knows what is required for a business looking for a loan to construct a new building. And he says many small business owners do not have the resources to make the down payment.

As someone who works in the banking industry, Dan Gutshall knows what is required for a business looking for a loan to construct a new building. And he says many small business owners do not have the resources to make the down payment.

“It takes a lot of capital,” he said.

Gutshall has been serving as the chairman of a committee that put together a proposal designed to help reduce the financial barrier for investing in industrial development. The committee is proposing an incentive loan program for what are known as spec buildings.

The committee was formed on behalf of the Leavenworth County Port Authority.

Copies of a report of the committee’s proposal have been submitted to the Port Authority and its partner organization, the Leavenworth County Development Corporation.

Gutshall said the proposal will require approval from the governing boards of both the Port Authority and LCDC.

If approved, the program would offer a zero percent interest loan of up to $200,000. The loan would be in addition to money a developer is able to secure from a bank.

There is no size restriction for spec buildings that can be constructed with the help of the loan program.

Gutshall said the zero percent interest loan would be provided through LCDC with funding from the Port Authority.

Among the goals of the proposal is to reduce the gap that exists between the tax base for residential properties and the tax base for industrial properties.

Gutshall said increasing the number of industrial buildings in the county would lessen the tax burden on homeowners.

He said the Port Authority has limited resources for a loan program. He said the county government and city where the new building is constructed will be asked to provide reimbursement for some of the expenses. But the local governments would not be obligated to contribute.

“It’s purely a voluntary thing,” he said.

Gutshall has presented the proposal to local city councils and the County Commission.

The proposal put together by the committee headed by Gutshall also includes an option that would allow a developer to take advantage of a sales tax exemption available to the Port Authority. This would allow building materials to be purchased without paying sales tax.

Twitter: @LVTNewsJohnR