Eric Peterson, president and chief operating officer of Network Kansas, and Steve Radley, Network Kansas chief executive officer, briefed the joint House and Senate commerce committees on the agency’s referral services, community loan programs and administration of federal SSBCI (State Small Business Credit Initiative) funds.

Peterson described Network Kansas’s referral center (rebranded as the Impact Investment Center), a statewide partner network and the eCommunity loan program that places local decision-making authority with 75 partner communities. “Network Kansas offers essential financial resources, valuable relationships, expert knowledge, and experience through these partners to the entrepreneurs in Kansas,” Peterson said.

Network Kansas supplied program data during the presentation: the eCommunity loan programs have made 1,014 loans totaling about $32.8 million and leveraged roughly $151 million in bank or public capital. The portfolio spans many community sizes: nearly half of the loans went to towns under 5,000 people and about 12% to towns under 1,000. Loan uses included startups (42%), expansions (32%) and purchases of existing businesses (22%); roughly half of the loans supported service industries, 27% retail and 18% restaurants.

Radley outlined administration of the federal SSBCI program under the Grow Kansas brand. Kansas’s SSBCI allocation totals $69 million over nine years; the state’s first tranche was $21 million and the program allocates roughly 60% to loan programs and 40% to equity investments. As of the presentation, Network Kansas reported 154 matching loans totaling about $14.5 million (leveraging roughly $58 million in private capital) and 28 equity investments totaling about $7.1 million (leveraging about $70 million). Radley said Kansas ranks highly in SSBCI deployment to rural and underserved businesses in Treasury reporting.

Peterson and Radley also described a new philanthropic partnership with the Patterson Family Foundation. Network Kansas said it received an initial $1 million grant that will offset a portion of principal on future eCommunity and Grow Kansas loans issued after January 1: for 1–5 year notes, 15% of principal will be offset as a grant; for 6–10 year notes, 16% will be offset.

Committee members asked operational and funding questions: how entrepreneurs contact Network Kansas (Eric Peterson said the contact email is info@networkkansas.com and an 877 number is available), how Grow Kansas loans pair with bank financing (Radley said a bank loan is required and Network Kansas provides gap financing behind the bank), and a request for a breakdown of operating revenue. Peterson summarized funding sources: an entrepreneurship tax credit capped at $2 million (Network Kansas raised roughly $1.8 million from it this year), an EDIF allocation of $396,000 from the Kansas Department of Commerce, philanthropy (about $1.8 million in the most recent year), and passive income from loan interest. He told the committee roughly 40% of Network Kansas operating funding is from the state, with the balance from philanthropy and program revenues.

Peterson said Network Kansas is rebranding and will launch a new website to increase visibility for entrepreneurs. He requested committee assistance in improving outreach partnerships, including potential coordination with the Secretary of State’s office to reach new business filers.

This session was a presentation and Q&A; no committee actions or votes were taken on Network Kansas programs during the meeting.