More than $166,000 has been raised to provide loans to local businesses, according to a news release from the city of Leavenworth.
Leavenworth was named last year as an Entrepreneurship Community by NetWork Kansas organization. And the city was awarded $125,000 in tax credits.
Donations totaling $166,667 were raised in exchange for the tax credits. As an E-Community, Leavenworth will use the donations to loan to businesses for startups and expansions.
“The First City Development Corporation, established almost a year ago, has enjoyed the wonderful support from our business community and the city staff,” Paul Backs, chairman of the First City Development Corporation said in the news release. “Through their support we have created the framework and foundation to provide resources and support to our community which will help establish or enhance enduring and meaningful projects focused on the development of our splendid city.”
FCDC is the non-profit organization that administers the E-Community program in Leavenworth.
“This next year we will make even more progress and begin the execution phase of our work,” Backs said.
NetWork Kansas loan programs are designed to provide an additional source of capital to help Kansas entrepreneurs be successful.
These funds are available to be awarded to local businesses as matching loans.
Gary Bartek, economic development administrator for the city who’s involved in the FCDC, said businesses will be able to apply for the loans for things such as expanding an operation or a physical plant.
In addition to the establishment of the E-Community loan fund, Leavenworth also will complete a series of strategic activities during 2012 designed to enhance the effectiveness of the entrepreneurial ecosystem in order to drive long-term economic growth, according to the release.
Three businesses in Leavenworth County have successfully utilized gap financing provided through the NetWork Kansas StartUp Kansas program since 2008 — The Pot Rack, Kansas Country Store and High Noon Saloon and Microbrewery. The Leavenworth E-Community fund will give entrepreneurs another potential source of capital.
The E-Community program, now in its fifth year, has grown from six communities in 2007 to 30 in 2011 and has raised more than $5.9 million for Kansas entrepreneurs.
Twelve NetWork Kansas E-Communities were awarded a total of $900,000 in tax credits in 2011, enabling them to raise $1.2 million to be loaned to local businesses in their communities.
