Phillips County E-Community has had some great success collaborating with multiple development organizations to help with financing new, succession and existing business projects with their Entrepreneurship Community Partnership loan. Over a period of a year, between June 2011 and 2012, a cumulative total of $130,878 E-community loan funds were used to help six businesses in the Phillips County area. These e-community dollars through the Phillips County E-Community loan program were used in conjunction with six (6) other financing avenues with corresponding matched funds: Phillips County Economic Development – Entrepreneurial Business and Enhancement ‘grant’ program ($131,953), NetWork Kansas – StartUp Kansas loan program ($112,369), Kansas Capital Multiplier Loan program ($15,000), Private Venture funding ($100,000), Local Bank loan financing ($263,600) and Business owner’s private funds invested ($127,000). The total cumulative cost for all the projects amounted to $880,800. These projects created ten (10) new jobs and helped preserve fifteen (15) existing jobs in the county during this same time frame. For a county with only 5650 residents, having 25 jobs (workers) positively impacted in the community shows the beneficial and cooperative points for the E-community program. Erik Pedersen, Network Kansas director, stated: “It is very exciting to see the creative and collaborative way the Phillips County Entrepreneurship (E-) Community team is working to provide financing which is enabling local businesses to start and expand. The jobs created and preserved will have a tremendous impact in Phillips County”.
NetWork Kansas is pleased to share this announcement on behalf of the Kansas Department of Commerce:
Mark Your Calendars!
The Rural Opportunities Conference will be held November 16-17 in Salina, Kanas. This conference will combine the Broadband Summit and the annual MarketPlace program to leverage common goals and audiences in support of economic advancement through technology. Entrepreneurs and community representatives will connect with broadband experts to explore advanced economic solutions, plot development strategies and network with fellow industry professionals.
The conference is being held at the Bicentennial Center. More information will be coming soon.
In the meantime, if you have any questions, please contact Carole Jordan at 785-296-3485. We hope to see you in November!
Phillips County has been actively encouraging individuals to start their own businesses. This is a big step for many individuals after being taught in most schools to become a full-time employee in a particular field. We have encouraged this business start-up by providing technical assistance and financial assistance through local and regional programs. We see this as entrepreneurism. There are other levels of being an entrepreneurial business, which is creating growth within the company to expand. This is an area of entrepreneurialism, which many times gets overlooked by development professionals and this process is figured out over time by the business. This atmosphere for our businesses has been changing in Phillips county over the last few years, and especially with the participation of several businesses within the Schallert Bootcamp. This training has inspired its businesses to look at marketing and their businesses in a different way.
In the same manner, a new idea (tool) has been forming over the last year for Kansas. It is new to Kansas, but you will be hearing a lot more about. It is called, “Economic Gardening”! Economic gardening embraces strategies that help grow existing “Second Stage” businesses. Second stage businesses are commonly defined as having these traits: 1) five (5) or more to 100 employees, and 2) gross reciepts of $750,000 dollars to 50 million dollars. Economic Gardening is an innovative entrepreneur-centered economic growth strategy that offers balance to the traditional economic practice of business recruitment, which often is referred to as “economic hunting”.
Phillips County has seen the loss of employees from corporate layoffs and a closing of a major corporate business in 2009 which employed 208 people. Most recently, an out-of-state business wanting to hire at-home employees asked Kansas Commerce to conduct a survey across 33 counties to investigate the availability of workforce. There were four counties (including Phillips) out of 33 counties, which stood out with having a large amount of viable workforce, but for what the corporation needed immediately, the total amount still fell short of the desired application to hire (4 to 1) ratio of which most corporations diligently follow before making a move. This shows a very important point toward development leaders in rural areas. The focus of our time, energy and resources should be spent on start-ups and expansions of existing businesses. This happens when the an entrepreneurial atmosphere is nurtured. Just like a garden needs prepped, tended, watered, and fertilized; so does our businesses need this type of nurturing. Historically, rural businesses feel it is the SMALL vs. LARGE businesses; but this growth method (tool) provides businesses the concept of SMALL into LARGE businesses. When this happens the entire economy is lifted higher and increases in size.
The economic gardening concept was pioneered by Chris Gibbons in 1989 in the city of Littleton, Colorado, a community that is the ensuing 15 years saw a 136 percent increase in new jobs. Whileit was introduced as a demostration program to deal with the sudden erosion of economic conditions following the relocation of the largest employer in the city at that time, it has emerged as a prototype for a rapidly expanding movement to generate truly sustainable economic growth for communities, regions and states.
Network Kansas has formed a statewide economic development task force to assist with the development of a Kansas pilot economic gardening program for businesses in rural communities. If you think you might be interested to be the first of forty (40) chosen to participate in this tool through Network Kansas, fill in the on-line application at the Network Kansas website. If you want more face-to-face information before applying or you want more of your questions answered, consider attending the Kansas Economic Gardening Entrepreneurship Forum on November 15, 2010 at Dodge City, Kansas. The forum agenda has Chris Gibbons and Mark Lange (Edward Lowe Foundation) discussing the particulars on this subject. Otherwise, you can call Steve Radley at Network Kansas or the PCED office directly.
If you predict that you or your business will be paying Kansas Income Taxes this year and need some tax credits – PLEASE ‘reply’ back via this e-mail or call the PCED office at 785-543-5809. Network Kansas is providing tax credits for individuals and businesses through Phillips County Economic Development to help raise monies for the Phillips County E-community fund. Phillips County recieved designation as an E-Community from Network Kansas for 2010 on 10-25-2010.
This 2010 tax credit program would allow you (business and/or individual paying Kansas Income Taxes) to keep (designate) tax dollars in western Kansas specifically for helping encourage the entrepreneurial business growth through specialized 0% or low-interest rate loans and funding for community development projects through the (Phillips County E-community Fund) maintained at Network Kansas. What a way to earmark your taxes to work toward something local and for business growth, rather than your taxes being delivered to the State of Kansas. This will NOT affect the Kansas budget, as these tax credits have already been allocated within the State budget office via legislation 3 years ago.
At this time, it is very simple. We (PCED) needs to have a commitment from individuals and/or businesses that would like to acquire these tax credits through a donation to Network Kansas. Check with your accountant first to see whether this tax credit will be an advantage to your individual or business tax situation. If it is, they will recommend ‘how many’ you need. Then contact the PCED office and let us know the information listed below. These 2010 tax credits are in a refundable category as they can be rolled forward to future years, if not used in 2010. The full amount is also deductable off your federal income taxes (most cases) due to the purchase going through a not-for-profit 501 c 3 organization (Center of Entrepreneurism – Network Kansas).
In a nutshell, it is a great way to steer your tax dollars toward local projects. Besides the direct impact on your Kansas Income Taxes, of which your donation (purchase) gains you 1-to-1 Kansas Tax Credits for the 75% of money donated, the other 25% difference is made up in the full amount of the donation paid being deductable off Federal taxes (in most situations – especially if you itemize). Here is an example: Your Kansas Income Taxes are estimated to be $750 dollars to be owed. You make a donation of $1000 toward these tax credits to acquire the 1-to1 credits needed. You will receive $750 dollars in Kansas Tax Credits (dollar for dollar) that is spoken for on a sheet of paper (the K-31 form – which is attached to your Income Tax form) showing you have redirected these $750 dollars of Kansas taxes to be used for a specific purpose (E-community funding for Phillips County). The 25% difference is made up usually by the federal income tax deduction given on the entire amount of $1000 dollars which reflects on your overall federal taxes. Obviously, this impact varies for each business/individual, so make sure you visit with your tax preparer on this opportunity.
PCED will be contact point for collecting the donation checks for Network Kansas on these tax credits. If you have already committed to tax credits, they you will need to send make out your check to: Network Kansas and in the remarks section denote – Phillips County E-Community. Then mail or hand deliver your check to the PCED office: P.O. Box 604, 205 F. Street, Suite 155, Phillipsburg, KS 67661. Your donation check should be made out for 25% more than your needed tax credit amount. Example: Your accountant stated you needed $1000 credits, then you would write the check out for $1250 dollars (or 25% more), since this is a 75% tax credit; thereby, you get your full $1000 dollars of Kansas tax credits and can use the full $1250 as a deduction toward your federal taxes.
If more than $125,000 dollars of tax credits are committed cumulatively to this endeavor (Phillips County E-community Fund), Network Kansas has agreed to provide the same type of tax credits for the business/person needing them, AND the donations given will be directed toward the ‘Start-up Kansas Fund” (which is a state-wide, competitive loan program that Phillips County businesses have also used). Any donations raised for the ‘Start-up Kansas” through Phillips County will allow 10% of those funds to come directly back as a ‘GRANT” to our local Network Kansas partners organizations.
This effort ‘not only’ helps establish a long term, entrepreneurial development loan fund for Phillips County businesses, but also brings monies which would be lost from this area by paying State Income Taxes, directly back in the form of ‘grants’ to our local, rural economy!!! It also helps YOU recapture some of your federal taxes, and allows you to know you are helping out the local rural areas.
At this time, if you are interested in committing to tax credits… just send an e-mail to PCED (Director) and let us know the following…..
- Who are the 2010 Kansas Income Tax credits for: (name of business or individual)
- Contact information for the (name of business or individual)
- Amount of Tax Credits desired: (minimum $250 and Maximum $50,000 – per entity or individual)
- There are no specified increments, so you could commit to $259 or $1113 or $49,999 – as long as you are above the minimum number and at or below the maximum figure.
I would recommend visiting with your personal accountant/tax preparer to see how you might benefit by acquiring these tax credits, as every tax situation for businesses and individuals are unique. These tax credits will not be available after December 14, 2010 – so get back to us as soon as possible, to earmark tax credits that you may need for 2010, if you are interested, in this way your commitments can be tallied and counted. Our telephone number is 785-543-5809 or contact us via e-mailing the PCED Director.
Keep in mind that these tax credits can be utilized by Kansas Income Tax Payers – so if you have connections across the state that you know that could utilize these credits and would help out in this effort – Please – forward them this information, and encourage them to participate!
Thanks for your time, attention and support in this effort!