Navigating Local Incentives: A Guide to Grants and Tax Credits for Kansas Entrepreneurs
- April Feller
- Sep 20
- 3 min read
Starting and growing a business is an incredible journey, and while Kansas is known for its strong work ethic and entrepreneurial spirit, even the most dedicated founders need capital to fuel their vision. Beyond traditional loans, a wealth of local incentives—from grants to tax credits—exists to help you get off the ground and scale up.
As a business owner, you’re often focused on the day-to-day. But understanding these hyper-local resources is a strategic move that can provide a significant advantage. It's not just about finding money; it's about leveraging the systems designed to help your business and the state’s economy prosper.
Here's a breakdown of some key programs and incentives to help you navigate the landscape and unlock new opportunities for your Kansas venture.
1. The Power of the Kansas Small Business Development Center (SBDC)
Before you dive into specific grants, you should know about the Kansas Small Business Development Center (SBDC). This is a statewide network of professional business advisors who provide confidential, no-cost advising on everything from business planning to securing financing. They are a crucial first stop for any entrepreneur, offering expert guidance and connections to the right programs for your unique needs. Here is a link to the SBDC office in Lawrence, KS.
2. Grants and Loans for Rural and Emerging Businesses
Kansas offers several programs designed to support businesses in rural and underserved areas. These are often non-dilutive, meaning you don't have to give up a piece of your company in exchange for the capital.
NetWork Kansas: This is the central hub for Kansas entrepreneurship. NetWork Kansas partners with over 650 resource organizations across the state to connect entrepreneurs with expertise, education, and financial resources. Their programs include:
StartUp Kansas: Provides matching funds for entrepreneurs and small businesses in rural and distressed communities.
Kansas Capital Multiplier Loan Fund: A program designed to provide matching loans of up to $100,000 for businesses that have already secured private capital.
USDA Rural Business Development Grants (RBDG): Administered through the U.S. Department of Agriculture, this program offers grant funds to entities that promote economic development and job creation in rural areas. While not for individuals, these grants can fund projects that directly benefit small businesses in the community, such as business incubators, training, and infrastructure.
3. State Tax Credits That Reward Growth and Investment
Tax credits are a powerful tool because they are a dollar-for-dollar reduction of the tax you owe. Kansas has several credits that can be a major benefit for both business owners and investors.
Kansas Angels Investor Tax Credit: This program is a fantastic incentive for attracting early-stage investment. It provides a tax credit for accredited angel investors who invest in qualifying early-stage Kansas-based companies. This makes your business more attractive to investors who want to support local growth.
Kansas Center for Entrepreneurship Tax Credit: This unique program offers a 75% state income tax credit to individuals and corporations who make a donation to the Kansas Center for Entrepreneurship. The donations directly fund entrepreneurship programs and matching loans through NetWork Kansas, effectively allowing you to support the entrepreneurial ecosystem at a fraction of the cost.
4. Beyond Capital: Incentives for Local Jobs and Residency
Incentives aren't just for funding. They can also help with workforce and community development.
High Performance Incentive Program (HPIP): If you're creating high-quality jobs, you may be eligible for this program, which offers an investment tax credit for companies that pay above-average wages and invest in developing their workers' skills.
Rural Opportunity Zones (ROZ): This program is a powerful incentive for attracting talent to your business. It allows new full-time residents in 77 qualifying Kansas counties to receive a waiver on their state income taxes for up to five years and/or receive up to $15,000 in student loan repayments.
Your Strategic Partner in Kansas
Navigating this ecosystem of grants, loans, and tax credits can feel overwhelming, but you don't have to go it alone. By staying current on these programs, we help businesses like yours strategically plan for success. Whether you're looking to start up, expand, or hire your first employee, understanding and leveraging these resources is the first step toward a more prosperous future.
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