Rural Business Enterprise Grant (RBEG) Program

Rural Business Enterprise Grant (RBEG) Program Revolving Loan Fund

The Rural Business Enterprise Grant (RBEG) Program is designed to assist small businesses in the more rural areas in Southwest Kansas. Funds may be used primarily for land, buildings, machinery and equipment, inventory and working capital. GPDI can make direct loans to qualified applicants and sets the loan term and interest rate. NEW LOAN APPLICATION PORTAL: Give us a call at 620-227-6406 and you can fill out your loan application on-line!


  • For small and emerging businesses in the rural areas or communities in Southwest Kansas which will employ 50 or less new employees and have less than $1 million in projected gross annual revenues.
  • Loan turndown or participation letters from area lenders are required.
  • No job creation requirement, but to maximum extent possible, encourages employment of low-income persons, farm and displaced families.
  • Eligible areas: Entire GPDI service area.

Projects Financed

  • Financing is available for most business needs including working capital, inventory, equipment, machinery and other fixed assets. Restructuring of existing debt is not eligible.
  • If the project involves construction, Davis-Bacon does not apply.
  • Project can be coupled with other internal GPDI loan funds, as well as other lending sources.

Loan Amount

  • Maximum loan is $150,000 from an internal revolving loan fund pool. Pool of funds is limited.

Interest Rate/Fees

  • Private Enterprises: Variable interest rate ranging from Prime + 1.5% to Prime + 4.25%, Minimum of 9%.
  • Public and Non-Profits: Variable interest rate ranging from Prime + 1 % to Prime + 4.25%, Minimum of 9%.
  • Origination fee of 1% of loan amount or $500.00, whichever is greater.
  • Closing fee of $300.00.
  • Miscellaneous fees incurred in the process of approval and closing (i.e. credit bureau inquiries, mortgage filings, U.C.C. searches and filings, appraisals, title work, etc.)


  • Principal and interest payment schedule based on the cash flow of the business and use of proceeds –
  • Land and Building 10 years
  • Machinery and Equipment 7-10 years
  • Inventory and Working Capital 5-7 years
  • Principal payments may be deferred if projections do not show the ability to pay principal right away.
  • There is no penalty for prepayment of an RBEG loan.


  • Loans are secured by the best collateral position available and can be subordinated.
  • Personal guarantees of the owner(s) of the business are required.

Please note that the overall portfolio must maintain a leverage ratio of 2:1, private to RLF funds. Therefore some loans may be made without a private match, but these are held to a minimum.

Contact a GPDI representative for more information.