KENTUCKY BUSINESS INCENTIVES AND FINANCIAL PROGRAMSKentucky's pro-business climate provides a number of incentives for businesses. The Kentucky Economic Development Finance Authority (KEDFA), established within the Cabinet for Economic Development to encourage economic development, business expansion, and job creation, provides financial support through an array of financial assistance and tax credit programs. Helping businesses in this way furthers the commonwealth's goals of achieving long-term economic growth and employment opportunities for its citizens. On June 26, 2009, Governor Steve Beshear signed into law House Bill 3, known as Incentives for the New Kentucky (INK) streamlining and modernizing Kentucky's business incentive programs. This legislation provides a program for existing manufacturers who need to make a significant capital investment in Kentucky facilities in order to remain competitive; consolidates KIDA, KREDA, KJDA & KEOZ into a single, more flexible tax incentive program for new and expanding businesses; provides a sales and use tax refund for companies that are heavy users of computer and telecommunications equipment; and, expands KEIA to allow sales tax refunds for the purchase of electronic processing systems costing $50,000 or more. KEDFA approval is required for participation in the loan and tax incentive programs, except the Skills Training Investment credits, which are approved by the Bluegrass State Skills Corporation (BSSC). KEDFA meets the last Thursday of each month. Projects must be received by the last Friday of the month prior to the KEDFA meeting date in order to be considered. KEDFA approval is required for participation in the loan and tax incentive programs, except the Skills Training Investment credits, which are approved by the Bluegrass State Skills Corporation. KEDFA meets the last Thursday of each month. Projects must be received by the last Friday of the month prior to the KEDFA meeting date in order to be considered. Kentucky Business Investment Program (KBI)Provides income tax credits and wage assessments to new and existing agribusinesses, regional and national headquarters, manufacturing companies, and non-retail service or technology related companies that locate or expand operations in Kentucky. Projects locating in curtain counties may qualify for enhanced incentives. Click here to view a map of the enhanced incentive counties. Download the KBI PDFDirect Loan Program (KEDFA)KEDFA encourages economic development business expansion and job creation by providing business loans to supplement other financing. The Direct Loan Program provides loans at below-market interest rates (subject to the availability of state revolving loan funds) for fixed asset financing for agribusiness, tourism, industrial ventures, or the service industry. Retail projects are not eligible.Download the KEDFA PDF Bluegrass State Skills Corporation Grant Reimbursement ProgramProvides matching grant funds for customized business and industry-specific training programs.Click Here to learn more about the program Small Business Loan ProgramThe Small Business Loan Program is designed to helps small businesses acquire funding needed to start or grow their small business. A small business must be engaged in manufacturing, agribusiness, or service and technology. Loan funds may be used to acquire land and buildings, purchase and install equipment, or for working capital. The minimum loan amount is $15,000 and the maximum is $100,000. The approved company must create one new full-time job within one year of the loan closing. KEDFA can fund up to 100% of the project costs and the loan can be used in conjunction with other lenders. The term of the loan can range from 3-10 years.Download the Small Business Loan Program PDF Kentucky Enterprise Initiative Act (KEIA)For new or expanded service or technology, manufacturing, or tourism attraction project in Kentucky. KEIA provides a refund of Kentucky sales and use tax paid by approved companies for building and construction materials permanently incorporated as an improvement to real property. It is also available for Kentucky sales and use tax refunds for eligible equipment used for research and development and data processing equipment. Download the KEIA PDF Industrial Revenue Bonds - IRBIRBs issued by state and local governments in Kentucky can be used to finance manufacturing projects and their warehousing areas, major transportation and communication facilities, most health care facilities, and mineral extraction and processing projects.Download the IRB PDF Other Resources Visit the Financial Incentives Page on the Kentucky State Government Website View SKED Loans Information |