Micro Loan Fund
The purpose of the Southeast Kentucky Economic Development Corporation's Micro
Loan Fund is to enhance long-term job growth by providing technical assistance
and short-term asset financing to local entrepreneurs and small and emerging
businesses in rural areas who need assistance in purchasing equipment in Southeast
The maximum loan amount is the lesser of 90% of the total project cost or
up to $50,000. The minimum loan size is $500. Completed applications are reviewed
and considered on a first-come, first-served basis with financing approval
subject to the availability of funds.
Projects financed must have fewer than 50 new employees and less than $1 million
in annual gross revenues. Micro Loan Fund proceeds may be used to finance
the purchase of fixed assets, which includes machinery and equipment and working
capital. Land and building projects are not eligible.
Term of Loan
The term of the loan shall not exceed 6 years.
Interest rates are based on New York prime rate at the time of the closing.
Typically, loans will be made at below-market interest rates to encourage
business growth throughout Southeast Kentucky
Appropriate collateral may include real estate, equipment, machinery, vehicles
and personal assets of the company's owners and will include personal guarantees
of the company's owners.
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 Micro Loan Fund is available in: Adair, Bath, Bell, Boyd, Breathitt, Casey,
Carter, 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.