MOKAN Development

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MO-KAN Development

• The Best Kept Secret in Town

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Our Mission

• The Mission of MO-KAN Development, INC. (MKDI)
  is to promote the economic development of the
  regional community with the assistance of the
  Small Business Administration.
• MKDI meets its primary objective by assisting
  entrepreneurs with financing through various loan
  programs.

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About Us

• MO-KAN is located at 1302 Faraon Street in Saint
  Joseph
• Since 1982, MO-KAN has made over 160 loans that
  have
• Created or retained more than 3,300 jobs
• Injected over 104,000,000 into our communities

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MO-KAN Serves
The State of Missouri And In Kansas, the Counties
of Atchison, Brown, Doniphan, Jackson,
Jefferson, and Nemaha
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The 504 Loan

• Money that Makes America Work!

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The 504 LoanFixed Asset Financing

• Loan proceeds may be applied to
• purchase of land and/or buildings
• machinery and equipment with a life expectancy
  of at least 10 years.
• construction costs
• renovations and leasehold improvements
• and related costs (legal, architectural, etc.)

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The 504 LoanFixed Asset Financing

• Loan proceeds may not be used for
• working capital
• inventory
• debt refinancing
• or blue sky

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The 504 Loan Package

• The 504 Loan is a combination of two loans
  involving MO-KAN Development, INC. and a private
  lender of the borrowers choice.

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From the Third Party Lender

• 50 of the total project costs is financed by a
  lender of the borrowers choice at the rates and
  terms of the lender
• The rates can be fixed or variable
• The loan term must be at least 10 years

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From MO-KAN

• 30-40 of the total project costs is financed by
  MO-KAN and guaranteed by the SBA
• The loan term is fixed for 20 years.
• Rates are below the current market rate.

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From the Borrower

• 10 of the total project costs is injected by the
  borrower
• For a start-up business the injection is
  increased by 5
• If the project includes a single purpose building
  the borrowers injection increases another 5

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Advantages for the Third Party Lender

• MO-KAN Staff assures that a completed loan
  package is assembled for SBA consideration
• 50 loan to value
• First lien position on all project assets

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Advantages for the Borrower

• Long term fixed rate financing
• Low down payment Up to 90 of total project
  costs can be financed.

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MO-KAN Also Packages

• 7(a) Guaranteed Loans
• 85 guarantee on 149,999 or less
• 75 guarantee on 150,000 or more
• USDA Business Industry Loans

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A Few of MO-KANsSuccess Stories
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Shatto Farms

• Shatto Farms was a small dairy farm located near
  Osborn, MO
• With help from MO-KAN, Shatto Farms is now
  selling milk to many milk lovers everywhere

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Shatto Farms

• Shatto now employs 14 Full-time workers and 3
  Part-time
• Owns 178 cows
• Produces 1,600 Gallons of Milk Per Day
• Check with your local grocer for availability

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Shatto Farms

• MO-KAN recommended the lender for us and went
  through the process of setting all the paperwork
  up for us. I would recommend them to anyone
  needing help with their business.
• Leroy Shatto (on right w/ U.S. Congressman
  Sam Graves)

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Collision Repair Specialists

• Opened new facility with the use of a 504 and RLF
  loan
• 35 employees
• Services include body repair, mechanical work,
  oil changes, rental cars, and more

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Collision Repair Specialists

• MO-KAN helped administer the 504 and supplied us
  with demographics that we didnt have access to
  before. They are great to work with.
• Dale Eaton, owner

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Ramada Inn

• Assumed control on July 2, 2003.
• 65 employees presently, 90 during peak season.
• MO-KAN gave us fixed rate financing at very good
  terms. They made the whole loan process a lot
  easier
• Peter Hwang

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The Dairy Barn

• Located in Wathena, KS
• 2 Full-time employees and 1 Part-time in the
  summer
• Quite possibly the best milkshakes in the world!
• MO-KAN was great! There is no way I could have
  done this without them!
• Sue Jack Frump, Owners

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The Barn Bed and Breakfast

• Located in Valley Falls, KS
• 20 rooms, Indoor pool, fitness room, hot tub,
  walking trails, and a fishing pond.
• MO-KAN made the Impossible Dream possible
  Tom Marcella Ryan

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FAQ

• Q. What does MO-KAN do for the small business
  industry?
• A. MO-KAN is a Certified Development Company
  (CDC) authorized by SBA to package 504 loans.
  MO-KAN assists in the procurement of funds for
  expansion, buyouts and new businesses just
  getting started.

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FAQ

• Q. Are there eligibility requirements?
• A. The business must be a for-profit entity with
  a net worth of less than 7 million and average
  net profits after taxes cannot exceed 2.5
  million.

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FAQ

• Q. What costs of a new business or buyout can be
  funded through SBA?
• A. SBA has two loan options available that would
  allow all project costs to be funded with the
  exception of the required injection.

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Thanks to MO-KAN

• New businesses have opened
• Businesses have expanded
• Many entrepreneurs have realized their dreams

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MO-KAN Development

• No More Secrets!