Notice of Availability of Loan Funds

The Kentucky River Area Development District has available loan funds through a grant from the US Department of Commerce, Economic Development Administration. In order to qualify for a loan the proposed borrowing company must meet the following criteria:

1. The company must create or retain at least one job per each $10,000 of RLF loan.

2. The KRADD RLF may only participate up to 25% of the total project costs.

3. At a minimum there must be $2 of other funds for every $1 of RLF loan money.

4. The minimum loan amount is $10,000 and the maximum is $200,000.

5. Loans may be for up to 20 years, but most are for between 5 to 10 year terms.

6. The interest rate can be no lower than 4 points below the Prime rate as quoted in the Wall Street Journal on the day of loan closing.

7. A working capital only loan can not exceed 5 years, and the borrowing company must have available at least 20% of their total working capital needs.

8. The company must provide proof that they have sought funding from other sources and do not have available the total project needs.

9. Loans may only be made to industrial, commercial or tourism type businesses.

For a list of available projects and additional information please contact Mr. Benny Hamilton at 606-436-3158, or e-mail benny@kradd.org.