How might this program benefit my business?

The purpose of the small business lending program, which we commonly refer to as the Revolving Loan Fund (RLF), is to provide a source of direct financing for small business owners who cannot obtain sufficient private financing for start-ups and expansions deemed to be of economic importance for the eight-county area served by NKADD.

What types of businesses are eligible?

Bright idea: Click to find out more about other Northern Kentucky small business resources.

Most kinds of small businesses are eligible to apply to the Revolving Loan Fund (RLF). RLF funds may be used for building purchase, most kinds of capital investment, and working capital, but the loan must lead to a creation or retention of long-term jobs. Also, the business owner(s) must meet minimum investment and collateral requirements. To be eligible for a loan, the business must meet all of the following criteria:

1. Planned or existing business location in Boone, Campbell, Carroll, Gallatin, Grant, Kenton, Owen or Pendleton Counties.

2. Intention to start a business or make a business-related capital purchase for which you have been unable to obtain private financing (bank rejection or bank support letter required).

3. Anticipated job creation or retention equal to 1 job for every $12,500 borrowed from the RLF.

4. Have sufficient collateral, equal to or greater in value to the amount of the loan.

5. Invest a minimum of 10% owner equity into the business.

What do I need in order to apply?

You need to complete an application, and submit additional materials that are typically present in a business plan. The application lists the required additional elements, such as tax returns and financial statements. The checklist is also available here.

How long the application process take?

The application requirements are similar to those of a traditional lender, though the process itself is somewhat unique. While the application process can take a month or longer, the Revolving Loan Fund staff will work with you throughout to ensure you understand the status of your application. Please click here to download a copy of the timeline.

How much money is available?

Loans range from $25,000 - $100,000. Please note that, due to the nature of the program in which all principal and a portion of the interest from existing loans is used to replenish the loan fund, money is not always available to be lent. Please contact the loan fund staff to determine if sufficient funds are available prior to submitting an application.

How exactly does this program work?

For more information about the program's history and details about the application process, click here.

 

FOR MORE INFORMATION, PLEASE CONTACT:

Andy Baker
Northern Kentucky Area Development District
22 Spiral Drive
Florence, Kentucky 41042
Phone: 859.283.1885
Fax: 859.283.8178