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County staff: state closed microloan program; $6,631.16 shortfall reported
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Summary
County staff told commissioners the Kansas Department of Commerce has closed out a long‑running county microloan program. Records show $100,000 in loans with $93,368.84 repaid so the program is short $6,631.16; staff warned the state may seek repayment or interest.
County staff reported that the Kansas state commerce office has closed out Brown County's microloan program that predated the current commissioners.
A staff member said the county originated about $100,000 in microloans and has received $93,368.84 in repayments, leaving an outstanding shortfall of $6,631.16 in the program's account. The staff member said county files are incomplete for some loans and that some business borrowers defaulted or sold assets, leaving insufficient funds to repay the county.
Staff said the state has completed its review of county files and closed the program administratively; the county has not yet received formal instructions on whether the state will seek reimbursement or interest. The staff member advised commissioners to be prepared for the possibility that the state could request repayment, and asked that any information about defaulted borrowers be forwarded to the county office for follow‑up.
Commissioners discussed past efforts to collect from borrowers and noted that when borrowers had signed personally the county had been able to send demand letters; staff said many earlier loans were made to LLCs with unclear individual guarantees and some borrower entities are now defunct.
No formal board action was taken at the meeting on the microloan program; staff said they would continue to review files and provide documentation to commissioners if the state requests repayment.
