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/ .

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By Robbi Meisel 21 Mar, 2017
WASHINGTON – Kentucky businesses and residents affected by severe thunderstorms, tornadoes, winds and hail from Feb. 28 through March 1, 2017 can apply for low-interest disaster loans from the U.S. Small Business Administration, SBA Administrator Linda E. McMahon announced today.

McMahon made the loans available in response to a letter on March 16 from Michael E. Dossett, Authorized Representative of Gov. Matthew Bevin, requesting a disaster declaration by the SBA. The declaration covers Estill County and the adjacent counties of Clark, Jackson, Lee, Madison and Powell in Kentucky.

“The SBA is strongly committed to providing the people of Kentucky with the most effective and customer-focused response possible to assist businesses of all sizes, homeowners and renters with federal disaster loans,” said McMahon. “Getting businesses and communities up and running after a disaster is our highest priority at SBA.”

SBA’s customer service representatives will be available at the Disaster Loan Outreach Center to answer questions about the disaster loan program and help individuals complete their applications.

The Center is located in the following community and is open as indicated:
Estill County
Estill Development Alliance
177 Broadway Street
Irvine, Kentucky 40336

Opening: Thursday, March 23
Hours: 10 a.m. to 5 p.m.

Days: Monday – Friday, 9 a.m. to 5 p.m.
Saturday, March 25, 10 a.m. to 2 p.m.
Closed: Sunday, March 26
Closing: Thursday, March 30, 9 a.m. to 3 p.m.

Businesses and private nonprofit organizations may borrow up to $2 million to repair or replace disaster damaged or destroyed real estate, machinery and equipment, inventory, and other business assets.

For small businesses, small agricultural cooperatives, small businesses engaged in aquaculture and most private nonprofit organizations, the SBA offers Economic Injury Disaster Loans to help meet working capital needs caused by the disaster. Economic Injury Disaster Loan assistance is available regardless of whether the business suffered any physical property damage.

Loans up to $200,000 are available to homeowners to repair or replace damaged or destroyed real estate. Homeowners and renters are eligible for loans up to $40,000 to repair or replace damaged or destroyed personal property.

Applicants may be eligible for a loan amount increase up to 20 percent of their physical damages, as verified by the SBA for mitigation purposes. Eligible mitigation improvements may now include a safe room or storm shelter to help protect property and occupants from future damage caused by a similar disaster.

Interest rates are as low as 3.15 percent for businesses, 2.5 percent for nonprofit organizations, and 1.875 percent for homeowners and renters with terms up to 30 years. Loan amount and terms are set by the SBA and are based on each applicant’s financial condition.

Applicants may apply online using the Electronic Loan Application (ELA) via SBA’s secure website at https://disasterloan.sba.gov/ela .

Businesses and individuals may also obtain information and loan applications by calling the SBA’s Customer Service Center at 1-800-659-2955 (1-800-877-8339 for the deaf and hard-of-hearing), or by emailing disastercustomerservice@sba.gov. Loan applications can also be downloaded at www.sba.gov/disaster . Completed applications should be returned to the center or mailed to: U.S. Small Business Administration, Processing and Disbursement Center, 14925 Kingsport Road, Fort Worth, TX 76155.

The filing deadline to submit applications for physical property damage is May 19, 2017 . The deadline for economic injury applications is Dec. 20, 2017.

For more information about the SBA’s Disaster Loan Program, visit their website at www.sba.gov/disaster .
By Robbi Meisel 27 Feb, 2017

LEXINGTON, Ky., (Feb. 14, 2017) – Kentucky Small Business Development Center is seeking nominations for the 2017 Pacesetter Awards. The recognition program was created to honor high performing, second-stage businesses that are changing Kentucky’s economic landscape. The deadline to submit nominations is March 15.

KSBDC encourages small businesses that meet the following minimum qualifications to apply:

         ·  Privately held

         · In business for three or more years

         · Employ six or more full-time employees, including the owner

         ·  Annual sales meet or exceed $500,000

         · Located and headquartered in Kentucky

         ·Demonstrate the intent and capacity to grow evidenced by the judging criteria.

Pacesetters will be selected based on two or more of the following criteria:

         · Growth in the number of employees

         ·Increase in sales and/or unit volume

         · Innovativeness of the product or service

         ·Response to adversity

         ·Employee engagement and commitment

         ·Contributions by the nominee to aid community-oriented projects

Pacesetters will be recognized at the Kentucky Celebrates Small Business event held at the Capitol rotunda in Frankfort during the first week of May. Each honoree will receive an award inscribed with the business’s name and a promotional video for their own use that highlights the business. In addition, KSBDC will send a customized press release announcing the award to local media and trade associations. Honorees are given the rights to use the Kentucky Pacesetter logo and event photographs in promoting their business.

Anyone may submit nominations, including third parties associated with an eligible second-stage business. A business may self-nominate by completing the required form. Winners will be notified by March 27. Full nomination requirements and the application are online at https://www.ksbdc.org/kentucky-pacesetters1 .

The Kentucky Small Business Development Center, part of the University of Kentucky College of Agriculture, Food and Environment, is a network of 12 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. More information on KSBDC services can be found on their website, http://www.ksbdc.org/ .

 

Writer: Roberta Meisel, 859-257-0104

 

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 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/ .
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