How the EDC Can Help You Finance Your Project

In Incentives and Loans, KC News, Redevelopment, Urban Renewal by EDCKC Staff

First started in 1987 to help ensure a competitive, vibrant, and self-sustaining local economy in Kansas City, Missouri, the Economic Development Corporation of KCMO (EDCKC) serves to retain and grow existing business, and to support efforts to strengthen the economy and community of Kansas City, Missouri. We work with the city through the Downtown Economic Stimulus Authority, the Land Clearance for Redevelopment Authority (LCRA), Enhanced Enterprise Zone Boards, and a variety of other local economic development agencies.

The EDC’s priorities include:

– Retaining and growing local businesses
– Supporting the development of disadvantaged neighborhoods
– Promoting workforce development and job growth opportunities
– Promoting entrepreneurship and recruiting new business investment into Kansas City, Missouri

The EDC offers many services to help with business expansion or relocation, including site searches and selection assistance, economic development data, incentive programs, LCRA plans, and more.

One of the main ways that the EDC helps entrepreneurs and business owners in Kansas City is by helping to secure financing for projects and business expansion. Through the EDC Loan Corporation (EDCL), we can offer a variety of loans to help your project obtain the financing it needs to be successful. We specialize in Small Business Administration (SBA)-approved 504 loans in partnership with third-party lenders. As an SBA approved Certified Development Company, all our 504 loans are 100% guaranteed by the SBA, and can be used for acquisition of land or buildings, new construction, renovations, or to purchase machinery and equipment.

A typical 504 loan has three sources of funding, with the 504 loan making up 40% of the total project cost while outside lenders provide 50% and the borrower provides 10% as an equity injection. Once you’ve spoken with the EDCL to discuss your project, we can help you find outside lenders who would be happy to work with you to secure outside funding. The 504 loan itself has a low fixed interest rate for 10 or 20 years.

The 504 loans are designed for small businesses with a net worth of less than $15 million, and an average income for the last two years of less than $5 million, making them a perfect fit for startup businesses and small companies looking to expand their operations.

In addition to our 504 loans, we also offer a revolving loan program and a Neighborhood Commercial Revolving Loan Fund, as well as a River Market Loan Fund for businesses located in the River Market neighborhood. Not only that, but the EDC offers access to a wealth of information and other resources for outside sources of funding all over the metro area.

Whatever your next project is, if it will create jobs, help to invigorate and grow the local economy, and serve the Kansas City, Missouri community, then we want to help you find the financing you need to make it happen! Click here to learn more about our financing programs, or to get started with your loan application today!