Small Business Loan Fund
The purpose of the Southeast Kentucky Economic Development Corporation's Small
Business Loan Fund is to enhance business recruitment and expansion in its
45-county service area. Loans are made to new and expanding businesses to
finance fixed-assets such as land, buildings, machinery and equipment or provide
permanent working capital.
The maximum loan amount is the lesser of 50% of the total project cost or
up to $500,000. The minimum loan size is $50,000. Completed applications
are reviewed and considered on a first-come, first-served basis with financing
approval subject to the availability of funds.
Applications are evaluated based on a project's financial viability, its local
economic impact and the amount of private investment leveraged. Loan Fund
proceeds may be used to finance permanent working capital and fixed assets,
which include: land, buildings, machinery and equipment. Agribusiness projects
are not eligible.
Term of Loan
Real estate loans have a maximum term of 15 years; equipment loans will not
exceed 10 years; and the term for working capital loans is five years or less.
Interest rates are determined on a case-by-case basis after a review of the
loan application. Typically, loans will be made at below-market interest rates
to encourage business growth throughout Southeast Kentucky.
All loans will be secured with fixed assets. Real estate and equipment are
acceptable collateral. All loans require the personal guarantees of the company's
All attorney fees, title insurance fees, filing fees, document preparation
fees, appraisals and other costs associated with closing and securing the
loan are due upon closing.
The Small Business Loan Fund is available in: Adair, Bath, Bell, Boyd, Breathitt,
Carter, Casey, Clay, Clinton, Cumberland, Elliott, Estill, Floyd, Garrard,
Green, Harlan, Jackson, Jessamine, Johnson, Knott, Knox, Laurel, Lawrence,
Lee, Leslie, Letcher, Lincoln, Magoffin, Martin, McCreary, Menifee, Metcalfe,
Monroe, Morgan, Owsley, Perry, Pike, Pulaski, Rockcastle, Rowan, Russell,
Taylor, Wayne, Whitley and Wolfe counties.