• Nov 13, 21
• spencergregory
• Revolving Loan Fund Directory
• 0 comment

Kentucky Economic Development Finance Authority offers a mortgage loan program to work in conjunction with private financing.

The program is designed to allow businesses to obtain the long term financing needed to encourage growth.

Program Guidelines — Projects financed must be agribusiness, tourism, industrial ventures, or service industry.

No retail projects are eligible.

— KEDFA may participate in projects with loans ranging from $25,000 to $500,000. The amount of KEDFA participation is dependant on the project fixed asset cost, based on the following: Project Cost KEDFA Participation – Up to $200,000 50% – $200,000 to $500,000 40% – Above $500,000 30% — The project owners must inject a minimum of 10% toward the fixed assets.

— KEDFA financing may be combined with a Community Development Block Grant, however, in no case will the total involvement from both exceed 33% of the project coSt. — KEDFA financing may be combined with SBA 504 financing.

— Projects must create new jobs or have a significant impact on the economic growth of a community.

— Only fixed assets (land, building, and equipment) may be financed.

— No refinancing will be undertaken.

— Term and repayments are based on that of the private lending institution.

— Personal guarantees are required of the company’s owners who control at least 20% of the stock of the company.

— The borrower must provide KEDFA proof that the project is underway (invoices, etc.

) within 4 months of the approval date, or the commitment will expire.

— KEDFA funds are not disbursed until the entire project, as outlined in the application, is complete.

Interest Rates and Fees — The interest rate is fixed, and is tied to the term of the loan.

Rates are as follows: Term Interest Rate – 3 yrs.

1.0% – 5 yrs.

2.0% – 7 yrs.

3.5% – 10 yrs.

5.0% — A $500 non-refundable application fee must be submitted with the application.

— A 1% commitment fee (minimum of $1,000) is due within one month of the date the loan is approved.





Contact Information
Kentucky Economic Development Finance Authority
Address: 300 West Broadway
City: Frankfort
State: Kentucky

Website: http://www.thinkkentucky.com/KYEDC/kybizince.aspx?param=0

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