KEDFA Small Business Loan Program

KEDFA Small Business Loan Program

Provides Kentucky small companies with fixed-rate direct loans for fixed-asset needs linked to job creation.

The KEDFA Small Business Loan Program is a fixed-rate direct lending facility operated by the Kentucky Economic Development Finance Authority under the Cabinet for Economic Development. It provides below-market, fixed-rate loans for fixed-asset financing — covering land, buildings, machinery, equipment, and in some cases working capital — to Kentucky small businesses operating in manufacturing, agribusiness, or service and technology sectors. The program is administered under KRS 154.20 and governed by 307 KAR 1:006.

Loans range from $15,000 to $100,000 over terms of 3 to 10 years. Eligible borrowers must have 50 or fewer employees and operate in one of the specified sectors; retail businesses are explicitly excluded. The program can fund up to 100% of a project's eligible costs, or it may complement other private and public financing in a layered capital structure. As a condition of approval, the borrowing business must create at least one new full-time job within one year of loan closing.

KEDFA meets on the last Thursday of each month to consider loan applications; submissions must reach the authority by the last Friday of the month preceding the target meeting. This predictable monthly approval cadence allows applicants to plan their financing timelines precisely. Applicants are encouraged to contact the Cabinet for Economic Development (800-626-2930) or the Office of Entrepreneurship directly. For small manufacturing or technology firms in Kentucky that need fixed-asset capital but find conventional bank terms prohibitive, the KEDFA direct loan provides a straightforward, government-backed path with clear job-creation accountability.