Kentucky Small Business Credit Initiative

  • By creekmoremarketing
  • 29 Jul, 2015

LEXINGTON, Ky.– Governor Steve Beshear today announced a major small business initiative that will provide Kentucky’s small businesses with access to nearly $155 million in new loans to help with job creation across the state.

The Kentucky Small Business Credit Initiative involves three new small business programs implemented by the Kentucky Cabinet for Economic Development to facilitate increased private lending to Kentucky’s small businesses. The programs include: the Kentucky Capital Access Program; the Kentucky Collateral Support Program; and the Kentucky Loan Participation Program.

Gov. Beshear announced the initiative at the Coldstream Center, part of the University of Kentucky’s Coldstream Research Campus, in Lexington with lawmakers, business leaders and United States Treasurer Rosie Rios. The Coldstream Center houses 25 small businesses with more than 300 employees. Several of these businesses are recipients of federal small business grants.

“This program is great news for the Commonwealth and another critical step in the right direction toward improving the Kentucky economy,” Gov. Beshear said. “We want all of our families working, and we know small businesses are incubators for new jobs in our state. The small business credit initiative gives these small businesses an easier path to create those new positions. Economic development officials and business leaders deserve credit for working closely to establish the overall program.”

The increased access to capital stems from the state’s successful application for $15,487,998 in federal funds from the U.S. Department of Treasury through the State Small Business Credit Initiative (SSBCI). The funds, which will be leveraged 10-1 with private lender funds to generate almost $155 million, are part of the Small Business Jobs Act of 2010 passed in September 2010.

Under the Small Business Jobs Act, Kentucky can access $15.5 million in SSBCI funds. Kentucky expects to generate a minimum “bang for the buck” of at least $10 in new private lending for every $1 in federal funding. As such, this $15.5 million allocation for Kentucky is expected to support nearly $155 million in new private lending to small businesses in that state.

Economic Development Cabinet Secretary Larry Hayes filed the application on behalf of the Commonwealth. In planning the program, cabinet staff consulted with private lenders of all sizes, public-policy makers, Kentucky small business organizations, U.S. Department of Treasury officials and other states’ economic development officials.

“Based on our research of other states’ existing credit support programs and Kentucky’s small business programs, we anticipate these new programs will offer the broadest solution to the current credit issues facing Kentucky small business owners and entrepreneurs,” Hayes said.

The Kentucky Economic Development Finance Authority (KEDFA), a board established within the cabinet, has been designated to accept the $15.5 in funds and administer the new credit support programs.

“As one of the largest Kentucky-based community banks and a leading lender to small businesses, we are confident that the SSBCI programs will provide much needed capital to ensure continued growth opportunities for home grown businesses that play such an important role in communities throughout the Commonwealth,” said Steve Trager, chairman and CEO of Republic Bank.

“Kentucky Highlands Investment Corporation has worked closely with the cabinet for economic development on numerous projects to help attract, start and expand businesses,” said Jerry Rickett, president and CEO of Kentucky Highlands Investment Corporation. “These three credit enhancement programs developed within the Kentucky Small Business Credit Initiative are sure to improve many entrepreneurs’ ability to access funding, grow their operations and hire workers. We fully support the Kentucky SSBCI programs and applaud the governor and the cabinet for economic development for their hard work in applying for these funds.”

“The   Kentucky Small Business Development Center   works side by side with entrepreneurs across our Commonwealth and understands the challenges that they are having when it comes to acquiring the funding necessary to grow operations and hire workers,” said Becky Naugle, state director of the Kentucky Small Business Development Center. “With that in mind, we look forward to working closely with the cabinet for economic development and are very pleased to support the new credit enhancement programs developed within its Kentucky Small Business Credit Initiative.”

“These funds will provide a powerful spark for investment, growth, and job creation in Kentucky,” Treasurer Rios said. “This initiative will help ensure that more Main Street small businesses have access to the loans they need to expand, invest, and hire in their local communities.”

Program Part of Continued Effort to Support Small Businesses
The initiative is the latest of several recent small business programs implemented by Gov. Beshear’s administration. In January 2011, KEDFA began accepting applications through the Kentucky Small Business Investment Tax Credit program, part of the Governor’s 2009 INK legislation. Additionally, the Governor’s Kentucky Export Initiative, launched in late 2010, is helping to increase exporting activity among Kentucky small and medium-sized businesses. Gov. Beshear also recently launched Kentucky’s first Minority and Women Business Enterprise Certification Program, as well as unveiled a specialty license plate promoting Kentucky small business.

The One-Stop Business Portal is also in development, which will provide small businesses with one resource for starting and running a business in the Commonwealth. In order to make all of these programs effective, the governor has tasked the cabinet to partner with private and public sector small business assistance agencies across the Commonwealth to assure a consistent and comprehensive network that will meet small business needs.

“We must continue to look for ways to encourage the growth and stability of small business,” said Sen. Alice Forgy Kerr, of Lexington. “I know small businesses are the lifeblood of Kentucky. By strengthening them, we can keep jobs in Kentucky and recruit more jobs to our state.”
“Gov. Beshear is working hard to guide Kentucky through these tough economic times,” said Rep. Ruth Ann Palumbo, of Lexington. “These monies will provide millions of dollars for small businesses to create new jobs in our Commonwealth.”

“As a longtime advocate for small business, I can see this initiative helping to create jobs all over Kentucky,” said Rep. Tanya Pullin, of South Shore. “This announcement could not come at a better time for small business. I want to thank U.S. Treasurer Rosie Rios, Gov. Beshear and the Kentucky Cabinet for Economic Development for their attention to small businesses. Today’s announcement will long be remembered as a high point for small business job creation.”

For further information about the State Small Business Credit Initiative, visit http://www.ustreas.gov/offices/domestic-finance/ssbci/ .

Categories
Announcements Articles Events Press Releases Success Stories Technology

Recent Posts
By Robbi Meisel 20 Feb, 2017
MURRAY, Ky., (Feb. 2017) — Chris Wooldridge, Kentucky Small Business Development Center district director for the Murray State University SBDC and Arthur J. Bauernfeind College of Business, has joined the board of directors of the Foundation for Kentucky Industry.

FKI is a statewide, not-for-profit, with the goal of strengthening manufacturing in Kentucky, a very important economic driver in the commonwealth. FKI’s Board of Directors is comprised of manufacturing, education, economic development and public policy leaders.
Project and program partners currently include LIFT (Lightweight Innovations For Tomorrow), JPMorgan Chase, KY FAME (Federation of Advanced Manufacturing Education), business and public partners.

“We are pleased to announce Chris Wooldridge, District Director of the Kentucky Small Business Development Center at the Murray State University Bauernfeind College of Business, will be joining the Board of Directors of the Foundation for Kentucky Industry. Mr. Wooldridge’s experience and expertise regarding business and economic development will be a great asset to the Foundation’s work of maximizing career opportunities for both Kentuckians and industry in 21st century manufacturing,” according to Mary C. Breeding, President and CEO, Foundation for Kentucky Industry (FKI).

About Murray State University SBDC: Murray State University hosts the West Kentucky Region of the Kentucky Small Business Development Center program.  KSBDC is a network of 12 offices located throughout the state that helps existing and start-up businesses succeed by offering high quality, in-depth and hands-on services. The KSBDC is a partner program with the U.S. Small Business Administration.
For more information on KSBDC services, visit their website, http://www.ksbdc.org/ .
By Robbi Meisel 06 Jan, 2017

LEXINGTON, Ky., (Jan. 5, 2017) – The Kentucky Small Business Development Center significantly contributed to the state and federal economy during the 2014-15 fiscal year, according to an independent study conducted by James J. Chrisman, professor of management, Mississippi State University. The study was completed in June 2016 and shows that small businesses working with the center increased sales and employment figures at a greater percentage than an average business in Kentucky. KSBDC clients increased sales by 14.4 percent versus 3.8 percent, and increased employment levels by 15.1 percent compared to 1.5 percent.

Other findings from the Chrisman study:

  • KSBDC clients created 1,156 new jobs.
  • For every dollar invested in the program, $2.63 returned to the economy.
  • For every dollar invested in KSBDC counseling services, $9.47 returned to the economy.
  • KSBDC clients obtained $58.9 million in financing.
  • KSBDC clients increased incremental sales in Kentucky by $108.4 million.
  • KSBDC clients generated $8.55 million dollars in state and federal tax revenue.
  • Clients gave KSBDC staff a 4.7 on a 5-point scale for knowledge and expertise.
  • Clients recommended KSBDC services 98 percent of the time.

“KSBDC staff work very hard to serve Kentucky small businesses. We are very proud of the results of this independent, third-party research and are very pleased with the impact produced by our network,” said Becky Naugle, state director.

The Kentucky Small Business Development Center, part of the University of Kentucky College of Agriculture, Food and Environment, is a network of 13 offices located throughout the state. The center helps existing and start-up businesses succeed by offering high quality, in-depth and hands-on services. KSBDC is a partner program with the U.S. Small Business Administration. For more information on KSBDC services, visit their website, http://www.ksbdc.org/ .

 

Writer: Roberta Meisel , 859-257-7668

 

UK College of Agriculture, Food and Environment, through its land-grant mission, reaches across the commonwealth with teaching, research and extension to enhance the lives of Kentuckians.

 

By Robbi Meisel 18 Oct, 2016

LEXINGTON, Ky., (Oct. 18, 2016) –The Office of Veterans Business Development recognized Patricia Krausman, director of the Elizabethtown Small Business Development Center, as one of the six most outstanding instructors for the 2016 Boots 2 Business program.

Boots to Business is an entrepreneurial education and training program offered by the U.S. Small Business Administration. It is a training track within the U.S. Department of Defense’s Transition Assistance Program. The curriculum provides valuable assistance for transitioning service members who are exploring business ownership or other self-employment opportunities. The program leads them through the key steps for evaluating business concepts and providing the foundation required to develop a business plan. In addition, participants are introduced to Small Business Administration partners and resources.

The recognition was based on the instructors’ contributions and dedication to the program and to service members, veterans and spouses in their business ownership endeavors. Nominations for this achievement came from Small Business Administration offices across the country.

Krausman has provided business management consulting and training for more than 20 years. In 2009, she developed and served as the director of the Kentucky Small Business Development Center’s Veterans Assistance Program, the resource for veteran business support and advocacy. Additionally, she was chosen as A Veteran’s Small Business Advocate of the Year in 2013 by the Kentucky Small Business Administration. She takes an active role in her work and advocacy, serving as a member of the Kentucky Commission on Small Business Advocacy, the Lincoln Trail Workforce Development Board and the Governor’s Veterans Interagency Task Force. She was awarded the prestigious Kentucky Association for Economic Development Allied Professional of the Year in 2014.

“The Kentucky Small Business Development Center has a long-standing commitment to veterans and veteran-owned businesses. Boots 2 Business is a program specifically designed by the Small Business Administration and its resource partners to ensure that veterans have expert guidance and direction in their path to entrepreneurship,” Krausman said. “It’s an honor to be included in the recognition of outstanding instructors for the national SBA Boots 2 Business program. Veterans are exceptional entrepreneurs, and it is rewarding to have the opportunity to support them in their successful transition to small-business ownership.”

The Kentucky Small Business Development Center, part of the University of Kentucky College of Agriculture, Food and Environment, is a network of 13 offices located throughout the state. The center helps existing and start-up businesses succeed by offering high quality, in-depth and hands-on services. KSBDC is a partner program with the U.S. Small Business Administration. For more information on KSBDC services, visit their website, http://www.ksbdc.org/ .

 

Photo provided by the Kentucky Small Business Development Center –Patricia Krausman. ©KSBDC

 

Writer: Roberta Meisel , 859-257-7668

UK College of Agriculture, Food and Environment, through its land-grant mission, reaches across the commonwealth with teaching, research and extension to enhance the lives of Kentuckians.

 

More Posts
Share by: