We Want You Here

INCENTIVES
McPherson’s main incentive is competitive electrical power available through the McPherson Board of Public Utilities (BPU)—offering industrial rates 26 percent lower than the national average. Besides the great incentives offered by our partners at KDOC, many projects also receive a property tax exemption from the City or County.

Financing Incentives

Industrial Revenue Bonds

Industrial Revenue Bonds (IRB) are securities issued by cities and counties to provide funds for creditworthy companies. They are one of the most popular and cost-efficient methods of financing the purchase of land, construction of a new facility, improvements to an existing facility and /or equipping a business. This low-interest, fixed-rate financing mechanism can provide up to 100% of a business’ finding needs with the only equity requirement being the cost of the bond issuance’s fees. An IRB can also include a property tax exemption.

Community Development Block Grants

Community Development Block Grants may also be used by a business to acquire land or buildings, construct or renovate facilities, purchase machinery and equipment or for working capital. Companies can apply for up to $35,000 per job created with a maximum limit of $750,000. At least 51% of the jobs created must be for new hires meeting low- to moderate-income guidelines. CDBG economic development funds can also be used to finance infrastructure improvements to assist companies creating jobs.

Low Interest Loans

Low interest loan programs are available through the e-Community funds administered by the McPherson Chamber of Commerce (E-Community loan fund program), Main Street McPherson, UDSA-Rural Development, the South Central Kansas Economic Development District, and NetWork Kansas’ Start-Up Kansas program.

Small Business Administration Financing

The SBA has a number of financing programs. The SBA 504 debenture program is a g-term financing tool that provides long-term, fixed rate financing for major fixed assets the typical breakdown of a 504 loan is 50% private financing, a 40% 100% SBA-guarantee and a 10% equity contribution from the business.

The SBA 7(a) loan guarantee program is a guaranty backed by the SBA on a portion of the loan. 7a guarantees can be used for working capital or fixed assets. The SBA has loans that are designed for a number of business financing requirements and demographic groups.

Income Tax Incentives

Income Tax Reforms
Promoting Employment Across Kansas (PEAK)
Commercial Machinery and Exemption Expensing Deduction
High Performance Incentive Program (HPIP)