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Kansas Center for Entrepreneurship. Kansas Capital Multiplier Loan and Venture Funds Kansas City Lender Summit Federal Reserve Bank of Kansas City August 19, 2011 Presented By: Corey Mohn, Director of Statewide Programs NetWork Kansas. Where We Are Today…. …And What Used to Be Here.
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Kansas Center for Entrepreneurship Kansas Capital Multiplier Loan and Venture Funds Kansas City Lender Summit Federal Reserve Bank of Kansas City August 19, 2011 Presented By: Corey Mohn, Director of Statewide Programs NetWork Kansas
NetWork Kansas A Service of the Kansas Center for Entrepreneurship Principle Outcome/Our Priorities: Establish an organization to accomplish the following: • Serve as a central portal to help connect entrepreneurs with public sector business-building organizations • Increase availability of capital in rural areas • Assist regional and community organizations in providing seed funding for entrepreneurs • Promote business startups and expansions “NetWork Kansas”
NetWork Kansas Current Statewide Initiatives • Referral Center • Central portal of resources for entrepreneurs • StartUp Kansas • Statewide supplemental capital source in partnership with public and private lenders • Economic Gardening Pilot • High-level technical assistance and custom data for 2nd stage businesses “NetWork Kansas”
NetWork Kansas State Small Business Credit Initiative (SSBCI) • $1.5 billion nationwide to strengthen lending to small businesses (500 employees or less) • Matching program – 10x leverage on private investment, including bank loans and applicant equity • All states eligible to apply for funding in 2011 “NetWork Kansas”
NetWork Kansas SSBCI in the State of Kansas • Kansas award announced June 2011 • $10.5 million for the Kansas Capital Multiplier Loan Fund • $2.6 million for the Kansas Capital Multiplier Venture Fund • Loan and Venture Funds administered by NetWork Kansas in partnership with the Kansas Department of Commerce “NetWork Kansas”
NetWork Kansas Kansas Capital Multiplier Loan Fund • Loan minimum of $10K and max of $250K on Multiplier portion (minimum total deal of approximately $111K) • 9% match on private equity, including bank loans • Loan term is 5% up to 15 years • Currently accepting applications from NetWork Kansas resource partners • Multiplier Loans will be subordinate to private capital and be administered by certified development companies who are NetWork Kansas partners “NetWork Kansas”
NetWork Kansas Kansas Capital Multiplier Venture Fund • Investment minimum of $25K and max of $250K on Multiplier portion (minimum total deal of approximately $278K) • 9% match on private equity per round, including angel funds • Two applications have been approved: currently accepting applications from NetWork Kansas resource partners “NetWork Kansas”
NetWork Kansas Kansas Capital Multiplier Process • Application submitted by funding partner at www.networkkansas.com • Financial Review Loan or Venture Board reviews the application and approves or denies funding • Capital Multiplier dollars provided to the business through the partner (loan deals) or directly to the business (venture deals) • Partner collects any loan payments and distributes Capital Multiplier portion back to NetWork Kansas “NetWork Kansas”
NetWork Kansas Benefits to Lenders • Funds are subordinate to private capital • Multiplier uses of funds include working capital, business acquisitions, and inventory financing among others • Closing costs are partially paid by NetWork Kansas • Augments risk by providing avenues for capital beyond collateral (Example: StartUp Kansas 62 bank loans, 1 failure) “NetWork Kansas”
NetWork KansasA Service of the Kansas Center for Entrepreneurship NETWORK KANSAS • 1-877-521-8600 • www.networkkansas.com Corey Mohn 785-296-6611 cmohn@networkkansas.com
