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Small Business Loans in Kansas (2021 Update)
Kansas may not be the top state in the country for entrepreneurs, but there are still over 200,000 small businesses established state-wide. Most of these companies run on their own without the help of staff or employees. Many small businesses will require a business loan at some point in their life span. Applying for a loan is relatively easy and highly worthwhile when you have a lump sum of cash to work with.
Why Small Businesses Need Loans
Running a business is very expensive, especially when you still haven't established a solid client base. Revenue may be lacking, but you still need funds to run things. Alternatively, you might need a business loan because your company is doing phenomenally and needs to expand to enrich the public with its services. Any reason for why you need a lump sum of money for your company is a good enough reason to apply for a loan. However, be wary of using loans to bail out a suffocating business. If your company should still fail after taking out a loan, you'll be responsible as an individual for repaying the entire borrowed amount.
How to Determine Loan Use
Before taking out a small business loan, calculate how much money you'll need so that you don't get a loan that is either too much or too little for your goals. Plan where that money will be spent to avoid frivolous loan use that could result in the failure of your business. The last thing you want to do as a small business owner is get locked into a loan agreement, blow the money on non-business-related expenditures and still have a hefty bill to pay each month.
Applying for the Loan
To apply for a small business loan in Kansas, you'll need valid proof that your company needs the money and will benefit from the cash received. Lenders are picky when choosing who to give their business loans to. If your company is considered high-risk or is at all a liability, you'll most likely be denied. New businesses are also seen as a liability because of the high rate of failure within a company's first year.
Present valid documentation to the lender to support your business claims. They'll ask for things like receipts, bank information, expenses, bills and losses. It can take about 45 days for you to hear anything back from the bank concerning your approval, but you should be corresponding with them in the meantime to provide additional information.
Repaying the Loan
Bank loan rates vary, so you should search for a reputable Kansas bank offering a competitive rate. Business loan interest can range from 5.5 percent to a whopping 8.5 percent. While this range might not seem significant, it could mean the difference between getting a loan you can afford and one that prevents you from growing your company.
Banks in Kansas That Offer Small Business Loans
Here are the top banks in the state to get a small business loan:
The Wilson State Bank
Founded in Wilson in 1886, The Wilson State Bank is a community bank with extensive services dedicated to the convenience and the best possible banking experience of its customers.
The Citizens State Bank
The Citizens State Bank was formed in 1904 and first served the citizens of Moundridge. However, they have since expanded to offer their services to McPherson, Harvey, and Marion counties as well.
Goppert State Service Bank
Founded in 1899 and headquartered in Garnett, Goppert State Service Bank provides specialized loan products for small businesses such as agricultural loan and livestock loan.
Home Bank and Trust Company
On 8 August 1904, Home Bank and Trust Company first opened its doors in Eureka. Throughout the years, they have expanded their reach and acquired Severy State Bank.
Patriots Bank of Garnett
A family-owned business that gained charter in 1978, Patriots Bank started with $7 million in assets. Today, they have six locations and are worth over $90 million.
The First State Bank
Having extensive and market-specific banking products available, The First State Bank attempts and succeeds in giving you exactly what you need.
Top Cities in Kansas and Their Lenders
Kansas is one of the most notable Midwestern states in the country. The area is home to a diverse economy that was originally built from the agriculture industry. Modern times has seen Kansas develop an economy that plays home to some of the largest aerospace companies in the world. Manufacturing and food processing is also popular in the area. Much of Kansas is still rural, but there are a few major cities to choose from if you’re looking to start a business.
Below we will outline the top small business cities in Kansas. We’ll also take a look at the best small business lenders in each area.
Wichita is the manufacturing capital of Kansas. The area plays home to plenty of large and small manufacturing companies. Airplane manufacturing also plays a major role in the area. If you’re thinking of starting a manufacturing business, there aren’t many better places than Wichita. Below are our top lenders in the Wichita area:
INTRUST Bank is a large lender with a focus on the Wichita, Kansas area. They have a firm understanding of the local economy and how it works. They’re currently the largest lender of SBA loans in the city. They also provide their clients with a range of other financial products, including business banking.
Legacy Bank is another large bank with a focus on Wichita. They have a local branch that you can use to consult about their various business loans. You can head into any of their Wichita locations to get advice about funding your small business.
Kansas City, Kansas
Kansas City is a city that is both inside of Missouri and Kansas. Again, Kansas City is a major manufacturing hub with plenty of assembly lines and manufacturing plants in the area. Below are our top picks for lenders in the area:
Summit Bank of Kansas City
Summit Bank of Kansas City is one of the largest local banks in the Kansas City area. They provide loans to businesses who operate in the city and surrounding areas. We recommend this lender because they have an outstanding reputation in the community and they know what type of funding helps local businesses succeed.
As with Wichita, INTRUST Bank has a large presence in the Kansas City region. If you want a local lender that has branches throughout the state of Kansas, INTRUST Bank is always a good option. As mentioned previously, they have experience helping their customers with a variety of different lending products and banking services.
Olathe is an insurance and technology hotspot in the state of Kansas. If you’re looking to tap into any of these two industries, Olathe is an affordable place to live! Below is our favorite lender in the area:
Bank of the Prairie
Our favorite lender in Olathe is Bank of the Prairie. This small, local lender has a firm understanding of what Olathe businesses need – they’ve been helping business owners in the area for decades. They provide equipment financing, lines of credit, SBA loans, commercial real estate loans, and a range of other business banking services.
Topeka is the capital of Kansas. Like most capital cities, the government provides plenty of jobs in the area. Topeka is also a retail hotspot. If you’re thinking of starting a business in the area, we recommend the lender below:
Alliance Bank of Topeka
Alliance Bank of Topeka is a local bank in the city that provides both consumer and business banking and lending services. They have a good reputation with local business owners. If you want to speak to them about lending, you can head into one of their area branches to meet face-to-face with a lender!
Lawrence is home to the University of Kansas. If you’re looking to enter a market that benefits from being a college town, this is a good place to start a business. Below is our top lender in the area:
INTRUST Bank has been mentioned previously in this article, but they also have a large presence in the Lawrence, Kansas area. If you want a large regional bank that also has local expertise in Lawrence, this is our top pick!
Like most of Kansas, Shawnee has plenty of manufacturing industry in the city. It also has a large role in the transportation industry. If you’re looking for a small city with affordable living costs, this is another good choice in Kansas. Below is the best Shawnee small business lender:
Bank of Blue Valley
Bank of Blue Valley is a small regional bank that has offices throughout Kansas. Their main lending facility is located in Kansas City, but they also help business owners in Shawnee. This is by far our favorite local lender in the area.
Remember, some of these companies or banks are very specialized and may only handle SBA loans or a business line of credit. Ask them about any special programs for minorities or women. Also ask for information about business grants for startups if that interest you. If you bad credit don't worry as there still may be other alternative lenders willing to work with you.