Network Kansas tells House committee Grow Kansas and Impact Center are boosting access to capital for small businesses

Steve Bridal, CEO of Network Kansas, and Eric (surname not provided), a Network Kansas representative, told the House Committee on Commerce, Labor and Economic Development that the organization’s Impact Center and loan programs are connecting entrepreneurs across the state to capital and technical assistance.

Bridal said Kansas is administering the federal State Small Business Credit Initiative (SSBCI, branded Grow Kansas) and that the state was allocated about $69,000,000 in three tranches. "The sole purpose of the money is to provide capital to entrepreneurs and small businesses across the state that leverages and supports private capital," Bridal said. He described Kansas’ allocation strategy as roughly 60% to matching loan programs and 40% to equity investments.

The testimony highlighted Network Kansas’ referral hub (the Impact Center), a 75‑county eCommunity network with local leadership teams and a financial review board for local loan decisions, and a history of gap‑financing programs. Eric said the Impact Center handles inbound inquiries, conducts a "listen and learn" intake and connects entrepreneurs to appropriate resource partners. He said Network Kansas has increased direct marketing to entrepreneurs, added a marketing hire focused on storytelling, rebuilt its website and formed a tech committee to explore AI tools for referrals.

On program activity, Bridal reported Grow Kansas loan and investment activity through Nov. 30: "We’ve done 271 loans of over $26,000,000 that has leveraged $69,000,000 in private capital," and 47 equity investments totaling about $11,780,000 that he said leveraged roughly $155,000,000 in private capital. He cited three Kansas businesses (Cap Creations of Johnson County, Work Torch of Sedgwick County, and Razor Precision of Riley County) that were featured in U.S. Treasury reports.

Committee members asked how the loan programs perform and how they are secured. "Our default is about 6%," Bridal said when Representative Melcher asked about defaults; he added Network Kansas expects a higher failure rate than banks because the programs intentionally take greater risk to fund deals banks otherwise would not. Bridal described Network Kansas loans as "companion loans" that are typically in a second position behind the bank, with primary reliance on personal guarantees and second liens when real estate or equipment exist. He said the organization uses ACH for repayment monitoring and coordinates with local coaches and partners to offer payment plans or technical assistance for struggling borrowers.

Eric outlined eCommunity loan terms and portfolio makeup, saying the organization typically uses 4% interest on 1–5 year notes and 6% on 6–10 year notes for its gap financing, and that about 42% of loans have been startups. He pointed lawmakers to fiscal figures in the organization’s annual report for additional detail.

Bridal described strengthened outreach to the Kansas banking sector, saying Network Kansas has engaged roughly 150 of the state’s 166 chartered banks and that those banks have provided capital that the program leverages. He said the organization plans additional targeted marketing in larger metropolitan areas to increase deal flow.

The committee recessed questions after members asked further procedural questions about fund recycling and outreach. Bridal said SSBCI funds are held by Treasury for nine years but Kansas expects to recycle repaid funds within several years through an evergreen loan fund model.

The presentation closed when committee members thanked the witnesses and moved on to other business. The record indicates Network Kansas’ materials (annual report) were used to support the numeric claims in the testimony.