Kentucky Small Business Credit Initiative (KSBCI)
Designed to generate jobs and increase the availability of credit by reducing the risks participating lenders assume when making loans to small businesses. Using three distinct credit enhancement programs, KSBCI will help lenders finance creditworthy small businesses that would typically fall just outside of their normal lending guidelines. Please click here for a listing of approved projects.
Western Kentucky Risk Assistance Fund (WKRAF)
has been established to provide support and relief efforts imperative to the Commonwealth of Kentucky to recover from the considerable damage caused by the December 2021 storms and tornadoes in Western Kentucky. The Program provides an enrolled Qualified Lender (as defined herein) the following inducement (the “Inducement”): the lesser of twenty-five percent (25%) or up to one million dollars ($1,000,000) of the loss incurred by a Qualified Lender on the unpaid principal balance of a Commercial Loan (as defined herein) made by a Qualified Lender to an Eligible Company (as defined herein). Twenty-five million dollars ($25,000,000) is appropriated to the Program and will be used to provide Inducements to Qualified Lenders on the first two hundred million dollars ($200,000,000) of Commercial Loans enrolled in the Program, provided that a Qualified Lender shall be eligible to enroll no more than ten million dollars ($10,000,000) in Commercial Loans in the Program.
Small Business Loan Program (PDF)
The Small Business Loan Program is designed to help 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 percent 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.
The Kentucky Small Business Tax Credit (KSBTC)
The KSBTC program is designed to encourage small business growth and job creation by providing a nonrefundable tax credit to eligible businesses hiring one or more eligible individuals and investing at least $5,000 in qualifying equipment or technology. With certain exceptions, most for-profit businesses with 50 or fewer full-time employees are considered eligible for this program. The KSBTC program has a limited allocation of available tax credits. Guidelines | Fact Sheet
U.S. Small Business Administration
Federal agency that provides a number of guaranteed loan and other financial assistance programs to small businesses.
Angel Investment Tax Credit
The Kentucky Angel Investment Tax Credit offers a credit of up to 40 percent of an investment in Kentucky small businesses. Prior to investment, both the investor and small business must submit applications for certification. Each investment must be certified in advance, as well. Refer to the Kentucky Angel Investment Act Guidelines for program details and qualifying criteria. Guidelines
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