A non-profit Kansas City lender has been selected as one of only 20 community organizations in the nation to launch a new Small Business Administration pilot program.
Midwest Small Business Finance of Kansas City has been selected for the new Intermediary Lending Program announced last month by the SBA. One of only four organizations chosen between the Appalachian and Rocky Mountains, MSBF will expand its current Missouri territory to include eastern Kansas for the effort.
Pat Brown-Dixon, regional SBA administrator, said MSBF’s selection was another significant achievement for the organization. “Once again, MSBF has shown themselves to be nimble, innovative and responsive to their customers’ needs,” she said. In May, the SBA named MSBF the Certified Development Corporation of the Year.
The ILP will provide funding for small business loans to finance start-ups and expansion, especially in markets where small business capital has been difficult. MSBF will be eligible for up to $1 million in capital for individual loans as high as $200,000.
“Midwest Small Business Finance will be able to put some money to use in our community that right now is not available, especially to people wanting to start up a business,” explained Brick Porter, president and CEO of Lawson Bank and a MSBF director. “This is great news.”
Another MSBF director, Scott Page, president of Pony Express Bank, said the funds would add an important option for borrowers. “It’s another bullet in the arsenal,” he said. “This is a nice option to offer businesses that have maybe had some issues getting conventional bank financing.”
The ILP program is intended especially to help borrowers with challenges caused by the economic downturn and commercial lenders with less funding available for loans as well as lower appetites for risk leading to tighter underwriting standards.
Both Porter and Page praised the MSBF staff for making the effort work. “We’ve had a great year,” Porter said. “We’ve got a great crew, and they really work to make it easy for our small businesses to get the capital they need. That helps the local economy and brings jobs.”
Originally operating as the Clay/Platte Development Corporation, MSBF last year helped generate more than $18 million in development and created or retained nearly 300 jobs. Since its founding in 1982, the organization has helped create or retain nearly 3,000 jobs.