Lawrence was selected by NetWork Kansas, a state organization promoting entrepreneurship, to receive $125,000 in tax credits to be converted into loans for local businesses.

NetWork Kansas chose Lawrence and Wichita as its pilot “Metropolitan Entrepreneurship Communities.” Since 2007, the organization has given the same type of benefit to 53 other Kansas communities, most of which are rural.

The intent of the program is to give more financing options to small, local businesses.

Lawrence has already used the $125,000 in tax credits from NetWork Kansas to elicit donations. The tax credits offset state income tax liabilities for individuals and businesses.

Most of the donations will be used to build a loan fund, said Cyndi Hermocillo-Legg, small business facilitator of Lawrence and Douglas County.

She said another $1,500 of the money raised would go to the local One Million Cups chapter, which offers a platform for entrepreneurs to share their ideas.

Starting in the second quarter of 2016, money from the new loan fund will be distributed as matching loans to eligible entrepreneurs.

To receive a loan, businesses must fall into one of the following categories:

• Be located in a “distressed area,” where at least 20 percent of people live below poverty level

• Be owned by a woman, minority or someone who is disadvantaged.

• Employs low-income individuals or plans to.

• Offers products or services that support disadvantaged or underserved populations.

• Has a mission to serve disadvantaged or underserved populations.

“This is our attempt to work to see what we can do to more positively affect the entrepreneurial environment, whether it be startup businesses or existing business growth, things like that,”said Erik Pedersen, vice president of entrepreneurship for NetWork Kansas.