Areas Served: Bracken, Fleming, Lewis, Mason and Robertson counties
BTADD was funded by the Economic Development Administration (EDA) in the amount of $750,000 to make business loans in the Kentucky Counties of Bracken, Fleming, Lewis and Robertson.
Since that time, Mason County has become eligible for these loans.
An 11-member Revolving Loan Fund Committee makes all decisions regarding loans.
Loans are made to businesses that might otherwise be unable to borrow the necessary funds for their business.
The BTADD/RLF does not compete with our local banks for loans.
Whenever possible, BTADD/RLF will make joint loans with a bank.
The funds may be used for working capital, inventory, equipment purchases and buildings.
Terms of these loans are 3-5 years for working capital and inventory, 5-7 years for equipment and 7-10 years for land and buildings.
Interest rates and repayment terms are established by the RLF Loan Committee on a case-by-case basis, taking into account the specific needs and ability to repay of each business.
One full-time job must be created or preserved for every $10,000 in loan amount.
BUSINESS LOAN APPLICATION PROCESS Applicants contact the BTADD/RLF – either from word-of- mouth or from bank referrals.
BTADD/RLF staff meet with the potential client to discuss the proposal.
Once it is determined that the proposal is a “doable” deal, the application is completed, a field visit is made to view the business, credit checks are made, etc.
.
Each applicant must submit a letter detailing how much they want to borrow and telling exactly what the funds will be used for.
A financial statement of the individual and the business is required, along with a cash flow projection for 3 years.
If a purchase of an existing business is involved, we will request the last 3 years’ Schedule C, 1040, federal tax return.
We always require personal signatures along with corporate if the business structure is that of a corporation.
Husbands and wives both must sign.
Once the application is complete, a meeting is scheduled for BTADD/RLF Loan Committee.
This Committee has 11 members from all five counties.
We prefer to make joint loans with the banks.
Minimum loan $5000, maximum loan $250,000. The lowest interest rate we can charge is four percent.
Contact InformationBuffalo Trace Area Development District
Address: 201 Government Street, Suite 300
City: Maysville
State: Kentucky
Website:
http://btadd.com/loans.htm
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