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Economic Opportunity


Provide Revolving Loan Opportunities for Small Businesses

Revolving loans can provide small businesses with the gap financing they need to get started. These loans build the local economy and grow over time.

Get started developing a revolving loan program in your community. »

Tool Information


  1. Youth
  2. Entrepreneurship
  3. Jobs
  4. Technology/Modernization
  5. Local Food


Many smaller rural communities across Kansas face growing difficulties in procuring the necessary capital to provide small businesses and entrepreneurs the platform for growth. Revolving loan programs can offer gap financing at below market interest rates to help these businesses get started.  Revolving loans are often managed by local main street programs or business incubators.  These loans grow over time as they are repaid and have an increasing impact of the local economy over time.


Many revolving loans have a focus, such as launching downtown retail and service oriented businesses, high tech startups, or food and restaurant entrepreneurs, for example. Revolving loan funds are often paired with the kind of mentoring that business incubators can offer.

photo by US Department of Agriculture, Hunkpati Investment 2012 (CC BY 2.0)


Access to capital is a limiting factor for many entrepreneurs and small businesses, especially in rural and smaller communities.  Government grants are typically for non-profit businesses making it difficult for small business to find funding.  A revolving loan program helps businesses with a solid business plan, a good idea, and projections that the enterprise will result in local jobs to get started.  Revolving loans are generally not available for restructuring other debts. Generally personal guarantees and collateral are required as well as excellent credit.  Loans are expected to be paid back at a high rate of success so that the revolving fund can grow over time and serve new businesses.  

Additional Information

Implementation Strategy

Champions and Partners

  • Local Government
  • Non Profit sector
  • Private venture capital
  • Philanthropists
  • Universities and Colleges


Short (1-3 years)



Cost Details

  • Initial capital to seed the revolving loan fund
  • Administration of the fund
  • Accounting and Auditing Services

Funding Sources

  • US Economic Development Administration
  • SBIR STTR Federal Grant funds for small businesses and technology transfer
  • Local and state funding
  • Private and philanthropic funding

Implementation Details

A brief outline of the first few steps necessary for implementation are provided. The steps outlined here are provided only as a suggested starting point and other approaches are certainly valid.

  • Determine champion and manager for revolving loan program
  • Find grant or other funding to start loan program
  • Administer and maintain the fund with a high level of accountability

Case Study

South Central Kansas Economic Development District Revolving Loan

South Central Kansas Economic Development District Revolving Loan Program  is the oldest fund managed by this organization, and provides financing for businesses that have not been able to secure funding through traditional avenues.  The fund makes loans of up to $300,000 for local businesses that create jobs.  



SCKEDD provides a relevant example just beyond our region's boundaries of how revolving loans can work to fund local businesses