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Atchison renews Network Kansas partnership; staff cites $2 million in local small-business gap financing since 2017
Summary
The commission approved the annual Network Kansas partnership agreement. Staff said Atchison small businesses have received over $2 million in gap financing through Network Kansas programs since 2017; staff flagged increased federal funding and program requirements as reasons the program has become more administratively intensive.
The Atchison City Commission approved continuing the city’s annual partnership with Network Kansas by voice vote, preserving the city’s access to Network Kansas loan programs and business support.
Justin (city staff/economic development) described the history and local utilization of Network Kansas’ eCommunity and Grow Kansas programs. “Since 2017, Atchison small businesses have received over $2,000,000 of gap financing for startups, expansions and acquisitions,” Justin said. He told commissioners the city has participated in roughly 50 separate loan agreements over eight years and cited recent users including Rainey's Arcade, Service Brewing and Daylight Donuts.
Justin also said Network Kansas has become administratively more substantial since taking on federal funds after COVID-era programs; he described the organization as boots-on-the-ground, with local staff and a CEO reachable by phone. Justin said the program’s maximums are currently $45,000 for eCommunity loans and $100,000 for Grow Kansas loans, and that Network Kansas expects loans to be paired with bank financing and to meet underwriting standards. He said the minimum interest rate set by Network Kansas is presently 4 percent.
Commissioners asked whether the city or local banks bear loan losses; staff said the capital at risk belongs to Network Kansas, that local banks underwrite and often sit on loan committees for approvals, and that there is no direct financial commitment required from the city by continuing the partnership. Staff noted they rely on local banks and on Northeast Kansas Enterprise Facilitation (NEKEF) and business coaches such as Teresa Wagner to counsel prospective borrowers.
The commission approved the partnership agreement to remain a Network Kansas partner for the coming year; staff said they will continue to advocate for streamlined processes with Network Kansas while maintaining the local relationship.
