In the interest of attracting businesses and promoting economic development within the state, the Kansas Department of Commerce has several programs that offer incentives and financing for new and existing businesses. In addition, business owners can get mentoring and advice from retired executives at SCORE, which has offices in Wichita, Topeka, and Kansas City.

The Small Business Administration also offers business courses and advisors at its Small Business Development Centers, which can be found in several counties across the Sunflower State.

The Kansas Job Creation Fund gives grants to businesses looking for help establishing themselves in Kansas. The fund typically disburses the grant money to recipients over five years as their company reaches certain investment and employment benchmarks.

Grants.gov has listings from federal agencies for grants currently open and available to businesses in Kansas.

When you first start your business, you’ll have to decide what type of structure it will be. If the business is only going to have one employee, yourself, or a few employees, a sole proprietorship will work. However, as the business grows, you’ll want to convert to either a corporation or a limited liability company. When you incorporate, you’ll have to check the name availability with the state and register with the Kansas Secretary of State.

After setting your business up, you’ll want to check with your lender to confirm what type of documentation they need to assess the risks and qualify you for a loan. A lender will usually ask for a business plan, an explanation of the purpose of the loan, a description of the proposed collateral, and how you intend to pay the loan back. If your loan proposal makes sense, and the lender feels comfortable extending the loan, you’ll likely get an approval.

The type of loan you take out depends on why you need it. For example, if you’re a wheat farmer who needs money to finance the purchase of seed and fertilizer at the beginning of the growth season, a revolving line of credit would work best. On the other hand, if you need to purchase a new combine to harvest the wheat, a term loan with payments spread over several years makes more sense. Online platforms, like Lendio, have financial consultants who can advise and help you decide very quickly, at no cost, which type of loan you need.

Starting a business with only the owners’ and investors’ capital can be a challenge. At some point in time, the business will need to take out a loan to support its growth. It could be a long-term loan to purchase fixed assets or a short-term line of credit to finance a temporary buildup in current assets.

Borrowing money is a natural process in the growth and development of a business, as long as the debt is kept in balance with the equity. The Sunflower State has an abundance of bankers and other lenders who are experienced and willing to finance small business owners.