Kentucky KEDFA Small Business Loan Program
Kentucky Economic Development Finance Authority (KEDFA) — Kentucky Cabinet for Economic Development
$15,000-$100,000
State equipment loans for small firms
A direct, fixed-rate loan program from the Kentucky Economic Development Finance Authority for small businesses in manufacturing, agribusiness, and the service and technology industries with 50 or fewer employees. Loans range from $15,000 to $100,000, can fund up to 100% of project costs (primarily equipment purchases and upgrades), and can be combined with other lenders. Loan terms run 3 to 10 years depending on the project, and the business must create at least one new full-time job within one year of loan closing.
- Funding type
- Loan
- Level
- State
- Amount range
- $15,000 – $100,000
- Realistic amount
- Most KEDFA small business loans fall within the $15,000-$100,000 band, sized to the equipmen…
- Deadline
- Rolling — applications accepted year-round, subject to availability of state revolving loan funds.
- Status
- active
- States
- Kentucky
- Payment model
- loan
Who qualifies
- Kentucky small business with 50 or fewer employees
- Must operate in manufacturing, agribusiness, or the service/technology industries (retail projects are not eligible)
- Must create at least one new full-time job within one year of loan closing
- Project must be primarily equipment purchase or upgrade (or eligible fixed assets)
- Must demonstrate ability to repay
What it covers
Eligible expenses
- Equipment purchase or upgrades
- Eligible fixed assets supporting the project
- Project costs (up to 100% financed)
Ineligible expenses
- Retail projects
- Refinancing of unrelated existing debt
- Costs outside the approved project
How to apply
-
1
Confirm eligibility and contact KEDFA
Verify your business has 50 or fewer employees and operates in an eligible industry. Call the Cabinet for Economic Development at (800) 626-2930 to request the KEDFA Fact Sheet and confirm current loan-fund availability.
~3 hrs
-
2
Prepare the application package
Assemble business financials, projections, the equipment/project budget, and your job-creation plan (one new full-time job within a year).
~8 hrs
-
3
Submit to KEDFA for review
Submit the application; KEDFA underwrites on a rolling basis subject to the availability of state revolving loan funds, and the loan can be paired with other lenders.
~2 hrs
-
4
Close and meet the job commitment
Execute loan documents at the fixed rate, draw funds for the equipment/project, and create the required new full-time job within one year of closing.
~2 hrs
The one-new-job-within-a-year requirement is the real string attached — build a realistic hiring plan into your application, because that's what KEDFA monitors. Availability is tied to state revolving loan funds, so call (800) 626-2930 first to confirm funds are open before you invest time in the package.
Deadline & timing
No cycle; KEDFA reviews applications on a rolling basis. Contact the Cabinet for Economic Development at (800) 626-2930 for a KEDFA Fact Sheet and current availability.
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Last reviewed 2026. GrantCompass is an independent funding-discovery tool and is not affiliated with any government agency. Always confirm details on the official program page.