Areas Served: City of Covington
The Small Business Loan Program assists small business located in Covington, Kentucky in raising the capital necessary to fund their operations.
A business can request partial financing for working capital, inventory, leasehold improvements, or fixed asset purchases.
Loan Criteria To be eligible for this program, a business should meet one or more of the following: Create new jobs, a portion of which are targeted to low-moderate income jobs.
Increase the Covington tax base through additional employment or expected increase in business.
Eliminate city blight through building improvements.
Eligibility Only for-profit businesses will be considered for this program.
Businesses that by their nature restrict public access, including but not restricted to, taverns, liquor stores, and other facilities that are legally, exclusively adult-oriented are not eligible for loans.
Loan Terms A qualified business can borrow up to $3,000 per new job created or 25% of their financing needs, whichever is less.
The maximum loan amount is $25,000. The term of the loan will reflect how the money is used.
– Working Capital or Inventory: 1 3 years – Leasehold Improvements: 1 3 years – Equipment: 3 5 years – Land and Building: 7 10 years The fixed interest rate is generally 6% but is negotiable depending on the availability of funds and desirability of the project.
Collateral Loans from this program will be secured by a pledge of assets and a personal guarantee by the borrower.
The pledge can be subordinated to the primary lender.
Contact Information
City of Covington, Kentucky
Address: 638 Madison Avenue
City: Covington
State: Kentucky
Website:
https://www.covingtonky.gov
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