in today’s business environment entrepreneurs need comprehensive and up-to-date information about finance and funding. Whether financing an innovative start-up or growing a mature business, sources of funding are not always easy to find. While the most common source of funding is a loan from a bank, many start-up’s cannot provide the security needed to borrow in today’s tight credit environment and need to find alternative sources such as special loan programs, crowdfunding, grants and business investors. Any business needing additional funding will usually find that they need to assemble any number of financing pieces almost as if they are assembling a puzzle. that is why we are launching this revised edition of sources of funding to assist business leaders and entrepreneurs in finding the funding sources available to both start-ups and mature businesses. We’ve included private equity, state and local grants, incentives as well as conventional debt financing. We hope this publication will help business owners and entrepreneurs like you continue to create jobs and drive our economy forward.

1. P i e c i n g t o g e t h e r a F u n d i n g s t r at e g y
$
$
$
$
Money Sources Directory

2. 2
KSBDC Mone y Sources Directory

3. INTRODUCTION
In today’s business environment entrepreneurs need comprehensive and
up-to-date information about finance and funding. Whether financing an
innovative start-up or growing a mature business, sources of funding are not
always easy to find. While the most common source of funding is a loan from
a bank, many start-up’s cannot provide the security needed to borrow in
today’s tight credit environment and need to find alternative sources such as
special loan programs, crowdfunding, grants and business investors.
Any business needing additional funding will usually find that they need to
KSBDC helps you
find alternative funding
sources such as
assemble any number of financing pieces almost as if they are assembling a
special loan programs,
puzzle. That is why we are launching this revised edition of sources of funding to
crowdfunding, grants and
assist business leaders and entrepreneurs in finding the funding sources available
business angels
to both start-ups and mature businesses. We’ve included private equity, state
and local grants, incentives as well as conventional debt financing.
We hope this publication will help business owners and entrepreneurs like
you continue to create jobs and drive our economy forward.
David Oetken, MBA
Center Director
Louisville Small Business Development Center
502-625-0123
SBDCInfo@UKy.edu
KSBDC.org/Louisville
KSBDC Mone y Sources Directory
3

4. TA B L E O F CONTENTS – M o n e y S o u r c e s
About KSBDC
KSBDC Leadership
6
8
Federal Government
9
Small Business Administration
7(a) Loan Program
International Trade Loans
Export Working Capital Program
CAPLines Program
LowDoc Loans
SBAExpress
SBAExportXpress
Patriot Express
504 Loan Program
Small Business Investment Company (SBIC)
MicroLoan Program
Pre-Qualified Loan Program
9
9
9
9
9
9
9
12
13
14
15
15
16
US Dept of Housing and Urban Development
Community Development Block Grant Loans
(Section 108 Program)
16
16
US Dept of Agriculture
Business and Industrial Guaranteed Loans
Business and Industrial Direct Loans
Guaranteed Farm Ownership/Operation Loans
Direct Farm Ownership and Operating Loans
16
16
16
16
16
Export-Import Bank of the United States
Working Capital Loan Guarantee Program
17
17
4
KSBDC Mone y Sources Directory
Small Business Innovation Research Program
17
State Government
18
Kentucky Economic Development Cabinet
Kentucky Economic Development
Finance Authority Direct Loan Program
Industrial Revenue Bond Financing
Small Business Credit Initiatives
18
18
18
18
18
Incentive Programs
Kentucky Rural Economic Development Act (KREDA)
Kentucky Jobs Development Act (KJDA)
Kentucky Industrial Development Act (KIDA)
Kentucky Economic Opportunity Zone Program (KEOZ)
Kentucky Investment Fund Act (KIFA)
Linked Deposit Loan Program
19
19
19
19
19
19
20
Office of the New Economy
Innovation and Commercialization Centers
Rural Innovation Fund
Research and Development Fund
Kentucky Commercialization Fund
20
20
21
21
21
Local Government
22
Area Development Districts
TVA Loans: Southwestern Kentucky
Rural Electrification Loans (REA)
Mountain Association for Community
Economic Development (MACED)
22
23
23
24

5. TA B L E O F CONTENTS – M o n e y S o u r c e s
Private Capital
24
Angels
27
Alliance Group
Blue Equity
Evermore Investments, LLC
Futurity Investment Group
Pattco Ventures
Yearling Fund
Anchorage Angels
24
24
24
24
24
24
24
Enterprise Angels
Innovation Angels
Louisville Angel Investor Network
Bluegrass Angels & Bluegrass Angel Venture Funds
Queen City Angels
27
27
27
27
27
Crowdfunding
27
Kickstarter.com
Indiegogo.com
Rockethub.com
27
27
27
Mezzanine Financing
28
Non-Profit Organizations
29
Kentucky Highlands Investment Corp
Human/Economic Appalachian Development
METCO
Community Services & Revitalization
Microenterprise Loan Program
Southern Kentucky Economic Development
Corporation
29
29
29
30
Venture Capital
25
Chrysalis Ventures LLC
Mountain Ventures Inc
Venture Connectors
Village Ventures Inc
Office for the New Economy
Draper Triangle Ventures
Heron Capital
Allos Ventures
River Cities Capital Funds
Triathlon Medical Ventures
UPS Strategic Enterprise Fund
25
25
25
25
25
25
25
25
25
25
25
Seed Funds
26
Commonwealth Seed Capital
Kentucky Seed Capital Fund
Cardinal Venture Fund
Vogt Awards
Venture Connectors
26
26
26
26
26
KSBDC Mone y Sources Directory
30
5

6. A B OUT K S B DC
Kentucky Small Business Development Center (KSBDC) is a network of regional centers
throughout the Commonwealth dedicated to growing and improving Kentucky’s small
business community. Our mission is to strengthen Kentucky businesses and create
economic growth by providing excellent management assistance, educational programs
and helpful resources for Kentucky’s small business owners and entrepreneurs. KSBDC
The Louisville SBDC
is a partnership between institutions of higher education, economic development
provides one-on-one
organizations and the U.S. Small Business Administration. We serve the Counties of:
Bullitt, Carroll, Henry, Jefferson, Oldham, Owen, Shelby, Spencer and Trimble.
consultations at no cost
to existing and potential
Planning
KSBDC provides valuable tools to help entrepreneurs make informed business decisions
entrepreneurs in the
when planning to open a new business, purchase an existing business or expand an
Louisville region.
established business. Each KSBDC service center has access to:
• Market Research
• Demographics
• Industry Profiles
• Business Books
• Sample Marketing Plans
BlueMoon Winery Grows From
Kentucky Vineyard
After eight years growing grapes on her farm in Marion County,
Alex Ackermann decided to expand her business and open the
first winery in the county. KSBDC was there. Read more success
stories at http://ksbdc.org/category/success-stories/
6
KSBDC Mone y Sources Directory

7. A B OUT K S B DC
Consulting for Louisville Area Businesses
KSBDC offers free one-on-one consulting services. All of our management
consultants have broad-based skills and significant experience as business owners
and/or managers. Our consultants are qualified to answer questions and address a
variety of topics, including:
• Comprehensive Business Planning
• Cash Flow Projections
• Market Planning and Research
• Organizational Structure
• Staffing Needs
The Louisville SBDC
• Record Keeping
meets the educational
• Human Resource Issues
needs of the local small
• Cash Flow Management
• Financial Analysis
business community by
• Customer Retention Strategies
offering a variety of low
• Certification for Minorities & Women
• Technology Commercialization
Training
cost training programs
taught by industry experts
KSBDC offers affordable training workshops designed to provide early stage and
and qualified SBDC
existing business owners with the knowledge required to maintain and expand
Consultants.
a successful business. A listing of training workshops currently being offered
throughout the KSBDC network is available by visiting www.ksbdc.org. Numerous
self-paced on-line training courses are also accessible on our Web site.
Funded in part through a cooperative agreement with the U.S. Small Business Administration. All
opinions, conclusions or recommendations expressed are those of the author(s) and do not necessarily
reflect the views of SBA. Disability accomodations should be requested by contacting your local SBDC.
KSBDC Mone y Sources Directory
7

8. K S B DC L EADERSHI P
David Oetken
Toni Sears
Director, Louisville SBDC
Dave Oetken has worked with the KSBDC
for since 2011. Dave began his business
career in the sports/entertainment industry,
primarily in ice skating and ice hockey. He
has owned and managed three ice rinks
and was named the Manager of the Year
award from the Ice Skating Institute of
America. Dave was operations manager for
several professional ice hockey teams in
both the East Coast Hockey League and the
American Hockey League. He has owned,
operated and sold several businesses in the
food industry. He moved into the restaurant
field, owning and operating a number
of franchise concepts. Since 2005 he has
owned Louisville News company, one of
the largest distributors of thoroughbred
horse publications in the eastern United
States. David has a B.A. and M.B.A. from
Bellarmine University. He remains active in
his community, serving as a SCORE volunteer
since 2003 and is a past vice chair for GLI’s
Small Business Innovation Committee.
Assistant Director, Louisville SBDC
Toni Cardell has worked with the Louisville
SBDC for five years. Prior to joining the KSBDC,
she served as project director for the Louisville
Minority Business Development Center and
housing director for Sullivan University. Toni
holds and M.B.A. and a B.A. in English, both
from the University of Louisville. She is a twice
recipient of the Million Dollar Loan Club, a
distinction honoring KSBDC consultants who
have secured more than $1 million in loans.
Toni volunteers with Middle School Connection
and Big Brothers Big Sisters of Kentuckiana.
When not at work, Toni enjoys reading,
volunteering, exercising and attending plays
and sporting events.
502-625-0123
david.oetken@uky.edu
8
502-625-0126
Vallorie.Henderson@uky.edu
502-625-0124
toni.cardell@uky.edu
Janet Flaugh
Vallorie Henderson
Assistant Director, Management Consultant
Vallorie Henderson began working with the
Kentucky SBDC in August of 2011. Prior to
joining the team in Louisville, Vallorie served
as the business development director for the
Kentucky Arts Council in Frankfort for 10.5
years. She holds a B.A. from Berea College
KSBDC Mone y Sources Directory
in Berea, Kentucky and a M.F.A. from Miami
University in Oxford, Ohio. Vallorie has over 25
years of experience in marketing and promotion
with such regional organizations as the Speed
Art Museum and the Indianapolis Children’s
Museum. She owns and actively markets her
own fiber arts studio on both a national and
international level. Vallorie’s own success in
marketing and selling her artwork allows her to
relate to individual business owners on a very
personal level. Assisting small business owners
in understanding how to grow their revenue
streams is high on Vallorie’s list of priorities.
She also serves on the Board of Directors for Just
Creations, a fair trade retail outlet in Louisville.
She has traveled internationally to work with
artisan entrepreneurs in growing their businesses
and to assure they are paid a living wage.
Communication Coordinator, Louisville SBDC
Janet Flaugh has worked with the Louisville
SBDC for five years. Before joining the KSBDC
she served as director of volunteer services
for the Kentucky Center for the Arts. Janet has
a B.A. in Psychology from Indiana University.
She is active in her community, serving as a
volunteer for the Floyd County Animal Rescue
League. When not at work, Janet enjoys
camping, hiking, kayaking/rafting and nature
photography.
502-625-0123
janet.flaugh@uky.edu

9. Federal Government Money Sources
Federal Government Money Sources
US Small Business Administration
US SBA: 7(a) Loan Guarantee
The most basic and most frequently used
SBA program is the 7(a) Loan Guarantee.
There are three essential parties to an SBAguaranteed loan; SBA, the borrower, and
the lender (usually a bank). Small business
owners and entrepreneurs interested in
an SBA guarantee must submit a loan
application to the lender institution. If the
lender finds the applicant needs additional
support, it forwards the application to the
nearest SBA office for credit analysis. If
approved by the SBA, the lender then closes
the loan and disburses the proceeds.
Qualification as a small business is based
on the average number of employees
for the preceding 12 months or on sales
volume averages over a three-year period.
In addition, borrowers must demonstrate
the ability to repay and be willing to pledge
sufficient assets to secure the loan. New
businesses may be required to put up onethird or even one-half of the total assets
needed to get started. Finally, the business
must be unable to obtain financing on
reasonable terms without the guarantee.
Loans under this program may be
guaranteed up to 85 percent. However, the
maximum guarantee on loans exceeding
$150,000 is 75 percent. The maximum
amount SBA can guarantee for any one
borrower is $3,750,000. Interest rates on
the guaranteed loan program are negotiated
between the lender and the borrower and
are subject to SBA maximums. Generally,
the interest rate is 2.25-4.75 percent over
the Prime Interest Rate, depending on loan
amount and maturity of the loan. Maximum
maturity is 25 years to finance the purchase
of fixed assets. Most small businesses
who borrow working capital can expect a
maturity of five to ten years.
Borrowers may use the proceeds from
a 7(a) loan for expansion, renovation,
construction, or purchase of land or
buildings, to purchase machinery,
equipment, fixtures, to augment working
capital and to refinance existing debt under
special conditions.
Special purpose loan programs under the
SBA Guarantee:
International Trade Loans
SBA provides guarantees to businesses
that are engaged in international trade,
preparing to engage in international
trade, or can show that they are suffering
from direct import competition. The SBA
can guarantee up to 90% of $5 million in
combined working-capital and fixed-asset
loans. None of the loan proceeds can be
used for debt refinancing. Financing fees
and interest rates are similar to the 7(a)
Guarantee program schedule.
Export Working Capital
Exporters seeking short-term working
capital may be eligible for a 90 percent
guarantee of the principal and interest,
with the maximum loan amount being $5
million. The one page application form can
turnaround within 10 days.
CAPLines Program
The SBA will guarantee 85 percent up to
$5,000,000 with four short-term workingcapital programs. The programs are
Seasonal Line, Contract Line, Builders Line
and Standard Asset-Based Line. The Small
Asset-Based Line is an asset based $200,000
revolving line of credit.
LowDoc
LowDoc offers a simple one page
application form with processing in two or
three days for loans of up to $150,000, with
85 percent guaranteed.
SBAExpress
Preferred lenders may provide SBA
guaranteed small business loans of
$350,000 or less with a 50 percent
guarantee. The loans are processed and
serviced through experienced, authorized
lenders. Loans under $25,000 do not require
collateral. Use of proceeds follow the same
guidelines as the 7a program.
KSBDC Mone y Sources Directory
9

10. S B A Pa r t i c i pat i n g l e n d e r s
Branch Banking & Trust
5901-C Peachtree Dunwoody Rd
Suite 420
Atlanta GA 30328
770-551-8822
JP Morgan Chase
416 West Jefferson St
Louisville, KY 40202
502-566-3671
Clinton Bank
220 East Clay St
Clinton, KY 42031
270-653-4001
Commonwealth Bank & Trust
4912 U.S. Hwy 42
Louisville, KY 40222
502-259-2469
Community Trust Bank
346 North Mayo Trace
Pikeville, KY 41501
606-432-1414
Cumberland Valley National Bank
P.O. Box 709
London, KY 40743
606-878-7010
Edmonton State Bank
213 North Main Street
Tompkinsville, KY 42167
270-487-6123
Farmers Bank & Capital Trust
125 West Main Street
Frankfort, KY 40602
502-227-1615
10
KSBDC Mone y Sources Directory
Fifth Third Bank
401 South Fourth Street
Louisville, KY 40202
502-562-8162
FNB Bank, Inc.
101 East Broadway
Mayfield, KY 42066
270-251-6058
Fifth Third Bank of Northern Kentucky
8100 Burlington Pike
Florence, KY 41042
859-283-8222
Forcht Bank, NA
2404 Sir Barton Way
Lexington, KY 40509
502-267-0870
First Community Bank of
Western Kentucky
114 East Jackson Street
Clinton, KY 42031
270-653-4301
Heritage Bank
4155 Lafayette Road
Hopkinsville, KY
270-887-2999
First Federal Savings Bank of
Elizabethtown
2323 Ring Road
Elizabethtown, KY 42702
270-765-2131
First Financial Bank
225 Pictoria Drive Suite 800
Cincinnati, OH 45245
513-551-5770
First Kentucky Bank, Inc.
223 South Sixth Street
Mayfield, KY 42066
270-251-4960
First Security Bank of Owensboro, Inc.
300 Frederica Street
Owensboro, KY 42301
270-688-4699
First Southern National Bank
102 West Main Street
Stanford, KY
606-365-6971
Hometown Bank of Corbin
P.O. Box 1323
Corbin, KY 40702
606-528-2000
KeyBank, National Association
303 Broadway Street, 17th Floor
Cincinnati, OH 45202
513-830-1275
Kentucky Bank
401 Main Street
Paris, KY 40361
859-987-1795
Kentucky Neighborhood Bank
1000 North Dixie Avenue
Elizabethtown, KY 42701
270-765-4072
Magnolia Bank, Inc.
6512 West Dixie Avenue
Elizabethtown, KY 42701
270-765-4072
PBI Bank
949 South Dixie Highway
Munfordville, KY 42765
270-524-7283

11. S B A Pa r t i c i pat i n g l e n d e r s
Peoples Exchange Bank
48 Center Street
Beattyville, KY 41311
859-744-9400
Republic Bank & Trust Company
661 South Hurstbourne Parkway
Louisville, KY 40222
502-394-4443
South Central Bank of Monroe County
320 North Main Street
Tompkinsville, KY 42167
270-487-6117
Planters Bank, Inc.
1312 Main Street
Hopkinsville, KY 42240
270-886-9030
South Central Bank of Barren County
208 South Broadway
Glasgow, KY 42141
270-651-7466
Stockyard Bank & Trust Company
1040 East Main Street
Louisville, KY 40206
502-625-2485
PNC Bank Kentucky, Inc.
Citizens Plaza
Louisville, KY 40296
513-956-5159
South Central Bank of Bowling Green, Inc.
1757 Campbell Lane
Bowling Green, KY 42102
270-782-9696
The Bank – Oldham County Inc.
515 South First Street
LaGrange, KY 40031
502-222-2100
Regions Bank, N.A.
117 West Cedar Street
Franklin, KY 42134
800-734-4667
South Central Bank of Hardin County
4079 North Dixie Highway
Elizabethtown, KY 42701
270-763-9797
The Commercial Bank
P.O. Box 7
Grayson, KY 41143
606-474-7811
KSBDC Mone y Sources Directory
11

12. S B A Pa r t i c i pat i n g l e n d e r s
The Farmers National Bank of Scottsville
107 North Court Street
Scottsville, KY 42165
270-783-8300
United Citizens Bank & Trust Company
P.O.Box 250
Campbellsburg, KY 40011
502-732-6669
The Huntington National Bank
710 East Main Street
Lexington, KY 40502
859-361-8764
US Bank, N.A.
6010 Brownsboro Park Blvd
Suite C
Louisville, KY 40207
502-893-4223
The Paducah Bank and Trust Company
555 Jefferson Street
Paducah, KY 42001
270-575-5796
The Peoples Bank
201 North Bardstown Road
Mt. Washington, KY 40047
502-538-6060
The Sacramento Deposit Bank
P.O. Box 26
Sacramento, KY 42372
270-736-2212
Town & Country Bank and Trust Company
P.O.Box 305
Bardstown, KY 40004
502-348-3911
Traditional Bank, Inc.
49 West Main Street
Mount Sterling, KY 40353
859-498-0414
UPS Capital Business Credit
425 Bay Hill Road
Winsor, CT 06095
860-687-2699
12
KSBDC Mone y Sources Directory
Whitaker Bank, Inc.
P.O. Box 55439
Lexington, KY 40555
859-543-4000
Wilson & Muir Bank & Trust Company
107 North Third Street
Bardstown, KY 40004
502-348-5996
SBAExportXpress
Businesses who can demonstrate that loan
proceeds will be used to enter a new export
market or expand an existing export market
and have been in operation for 12 months
may be eligible for 85% guarantee for a
maximum loan amount of $150,000.
Patrick Hayes
Regional Manager, Export Solutions Group
Office of International Trade
U.S. Export Assistance Center
600 Superior Ave., Ste. 700
Cleveland, OH 44114
216-522-4731 • 216-522-2235 Fax
Patrick.Hayes@sba.gov

13. Federal Government Money Sources
Patriot Express
Veterans and members of the military
community may be eligible for Patriot
Express loans which feature the SBA’s lowest
interest rates for business loans, generally
2.25 to 4.75 over prime depending the
size and maturity of the loan. Proceeds
can be used for most business needs,
including preparing your business for your
deployment.
Farmers Bank & Capital Trust
125 W. Main
Frankfort, KY 40602
502-227-1615
Jonathan Mays
Heritage Bank
4155 Lafayette Rd.
Hopkinsville, KY 42240
270-887-2999
Roger Grogan
Fifth Third Bank
401 S. Fourth Ave.
Louisville, KY 40202
502-562-8162
Kathy Pleasant
Kentucky Neighborhood Bank
1000 N. Dixie Ave.
Elizabethtown, KY 42701
270-737-6000
Brad Burchett
Branch Banking & Trust Co.
5901-C Peachtree Dunwoody Rd.
Atlanta, GA 30328
770-551-8822
Ankur Patel
First Financial Bank
225 Pictoria Dr., Ste. 800
Cincinnati, OH 45246
513-551-5770
Glenn Clevenger, VP
Manager – SBA Lending
KeyBank, National Association
303 Broadway St., 17th Fl.
Cincinnati, OH 45202
513-830-1275
Steve Brooks
JP Morgan Chase Bank
416 W. Jefferson St.
Louisville, KY 40202
502-566-3671
Jason Adler
Citizens Bank & Trust Company
201 E. Main St.
Campbellsville, KY 42715
270-465-8193
Community Trust Bank, Inc.
346 N. Mayo Tr.
Pikeville, KY 41501
606-437-1414
Terry Spears
Edmonton State Bank
213 N. Main St.
Tompkinsville KY 42167
270-487-6123
Tony High
First Security Bank of Owensboro
300 Frederica St.
Owensboro, KY 42301
270-688-4699
Kevin Roark
First Southern National Bank
102 W. Main St.
Stanford, KY 40444
606-365-6971
Doug Daniel
FNB Bank, Inc.
101 E. Broadway
Mayfield, KY 42066
270-251-6058
Pat Bynum
Forcht Bank, N.A.
2404 Sir Barton Way
Lexington, KY 40509
502-267-0870
Creighton Reiss
PBI Bank
949 S. Dixie Hwy.
Munfordville, KY 42765
270-524-7283
Kenneth Kidd
Peoples Exchange Bank
48 Center St.
Beattyville, KY 41311
606-464-3631
Allan Turner
Planters Bank
1312 Main St.
Hopkinsville, KY 42240
270-886-9030 ext. 1732
Janet Calhoun
PNC, N.A.
Citizens Plaza
Louisville, KY 40202
513-956-5159
Rob Haskins
KSBDC Mone y Sources Directory
13

14. Federal Government Money Sources
Regions Bank
250 Riverchase Pkwy., RCS 1, BLC
Hoover, AL 35244
202-560-3344
David Lee
South Central Bank of Monroe County
320 N. Main St.
Tompkinsville, KY 42167
270-487-6117
Brian Clemmons
The Paducah Bank and Trust Company
555 Jefferson St.
Paducah, KY 42001
270-575-5796
Kerri Brotherson
Republic Bank & Trust
661 S. Hurstbourne Pkwy.
Louisville, KY 40222
502-394-4443
Karen Berry
Stock Yards Bank & Trust Company
1040 E. Main St.
Louisville, KY 40206
502-625-2485
Scott Parrott
The Peoples Bank
201 N. Bardstown Rd.
Mt. Washington, KY 40047
502-538-6060
Denise Laferty
South Central Bank of Barren County
208 S. Broadway
Glasgow, KY 42141
270-651-7455
Kelcey Rock
The Commercial Bank
P.O. Box 7
Grayson, KY 41143
606-474-7811
Jack Strother
Traditional Bank, NA
49 W. Main St.
Mt. Sterling, KY 40353
859-498-0414
Spears Stilz
South Central Bank of Hardin County
4079 N. Dixie Hwy.
Elizabethtown, KY 42701
270-763-9797
Josh Thompson
The Huntington National Bank
710 E. Main St.
Lexington, KY 40502
859-361-8764
Chris Jackson
United Citizens Bank & Trust Co
P.O. Box 250
Campbellsburg, KY 40011
502-732-6669
Roy Weeks
14
KSBDC Mone y Sources Directory

15. Federal Government Money Sources
US Bank, N.A.
6010 Brownsboro Park Blvd., Ste. C
Louisville, KY 40207
502-893-4223
Brandon Prather
Wilson & Muir Bank & Trust Company
107 N. Third St.
Bardstown, KY 40004
502-348-5996
Karen McGraw
Certified Development Company
(504) Loan Program
This program finances the purchase of fixed
assets including land, buildings, machinery
and equipment, and modernization or
renovation of existing facilities. CDC
funds cannot be used for working capital,
inventory, consolidation or repayment
of debt, refinancing, or financing a plant
outside the U.S. and its territories. Typically,
a lender institution finances 50 percent of
the project, while the CDC contributes 40
percent. The remaining 10 percent must
come from the borrower. Start-ups can
expect to put 15 percent up front, with a 35
percent contribution from the CDC.
A business must have a net worth of $7
million or less, and an average net profit
after taxes for the previous two years of $2.5
million or less. For every $35,000 of invested
CDC funds, one job must be created, retained
or meet a public purpose criteria.
504 Lenders
Capital Access Corp. - KY
401 W Main St, Ste 2010
Louisville KY 40202
502.584.2175
Fax: 502.584.2173
www.cac-ky.org
Community Ventures Corp. - Lexington
1450 N. Broadway
Lexington KY 40505
859.231.0054
Fax: 859.299.0261
www.cvcky.org
Community Ventures Corp. - Frankfort
306 W Main St, Ste 706
Frankfort KY 40361
502.696.9444
Fax: 502.696.9493
www.cvcky.org
Community Ventures Corp. - Paris
509 High St
Paris KY 40361
859.340.4028
Fax: 859.340.4052
www.cvcky.org
Purchase ADD, Inc.
1002 Medical Dr
Mayfield KY 42066
270.247.7171
www.purchaseadd.org
Small Business Investment Companies
The Small Business Investment Company
(SBIC) program provides venture capital to
small businesses for start-up and growth.
SBICs are for-profit, privately owned
investment firms licensed by the SBA.
SBICs provide equity capital, long-term
loans, and management assistance.
There are two types of SBICs; regular and
specialized (SSBIC). Specialized SBICs invest
in small businesses owned by socially and
economically disadvantaged entrepreneurs.
To be eligible for SBIC or SSBIC financing,
firms must meet the SBA’s definition of a
small firm.
Kentucky Small Business
Investment Companies
Chrysalis Ventures, LLC
101 South Fifth St, Ste 1650
Louisville KY 40202
502.583.7644
Fax: 502.583.7648
www.chrysalisventures.com
Mountain Ventures Inc.
P.O. Box 1738
London KY 40743-1738
606.864.5175
Fax: 606.864.5194
www.khic.org
The Micro-Loan Programs
The SBA distributes funds to private, nonprofit groups who serve as intermediary
lenders. SBA helps fund micro-loan
programs to provide business access to
small loans usually from $100 to $35,000.
Several Kentucky organizations can assist
with micro-loans.
Kentucky Micro-Lenders
Community Ventures Corp. –
Bowling Green
2413 Nashville Rd, Ste 114
Bowling Green KY 42101
270.904.0323
Fax: 270.904.0505
www.cvcky.org
KSBDC Mone y Sources Directory
15

16. Federal Government Money Sources
504 Lenders cont.
Community Ventures Corp. Campbellsville
107 W. Broadway
Campbellsville KY 42718
270.849.2323
Fax: 270.465.0607
www.cvcky.org
Community Ventures Corp. - Henderson
145 N. Main St, Fifth Fl
Henderson KY 42420
270.826.7505
Fax: 270.827.2969
www.cvcky.org
Community Ventures Corp. - Lexington
1450 N. Broadway
Lexington KY 40505
859.231.0054
Fax: 859.299.0261
www.cvcky.org
Community Ventures Corp. - Louisville
811 S 2nd St
Louisville KY 40203
502.566.6076
Fax: 502.566.6078
www.cvcky.org
Community Ventures Corp. - Paris
509 High St
Paris KY 40361
859.340.4028
Fax: 859.340.4052
www.cvcky.org
Kentucky Highlands Investment Corp.
P.O. Box 1738
London KY 40743-1738
606.864.5175
Fax: 606.864.5194
www.khic.org
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KSBDC Mone y Sources Directory
Purchase ADD, Inc.
1002 Medical Dr
Mayfield KY 42066
270.247.7171
www.purchaseadd.org
CDBG funds are granted to these cities and
counties. Not all communities make business
loans. Contact your local Department of
Community Development or Department of
Housing Official for more information.
Pre-Qualified Loan Program
The U.S. Small Business Administration
has created the Pre-Qualification Loan
Program to help small businesses that
have traditionally been underserved by
the lending community. Upon approval,
SBA will issue a guarantee commitment
letter for up to $250,000. Based on the
commitment letter, SBA lenders can provide
expedited consideration.
US Dept of Housing and Urban
Development
CPD Field Office
601 W Broadway
Louisville, KY 40202
(502) 618-8143
Washington, D.C. (202)708-1871
Roger.A.Leonard@hud.gov
U.S. Small Business Administration
600 Dr. M. L. King Jr. Pl
Louisville KY 40202
502.582.5971
www.business.usa.gov
US Dept of Housing and Urban
Development
US Dept of Agriculture
Business and Industrial Guaranteed Loans
The U.S. Department of Agriculture
(USDA) provides loan guarantees through
private lenders in rural areas of Kentucky.
Guarantees can cover a maximum of 80
percent for loans under $5 million, 70
percent for loans from $5 to $10 million,
and 60 percent for loans in excess of $10
million.
Community Development Block Grant
Loans (Section 108 Program)
Federal funds are allocated by the
Department of Housing and Urban
Development (HUD) to fund economic
development activities in Kentucky under
the Community Development Block Grant
program (CDBG). Communities typically
make loans available from those funds
to draw needed economic expansion and
revitalization projects.
Loans must be made in an area with a
population of less than 50,000. Priority
is give to applications made in rural
communities and towns of 25,000 or less.
Funds may be used to purchase land,
building, machinery, equipment, furniture
and fixtures; to finance construction,
expansion, repair, or modernization
of buildings; to provide start-up and
working capital; and to aid in agricultural
production. Funds may also be used to
refinance existing debt if it is necessary to
save existing jobs or improve cash flow.
These cities and counties are eligible:
Ashland, Covington, Henderson,
Hopkinsville, Owensboro, Lexington/Fayette
County, and Louisville/Jefferson County.
Business and Industrial Direct Loans
Direct loans expand the available credit
for businesses that do not qualify for
private funding to create/retain jobs and

17. Federal Government Money Sources
improve the economic climate in targeted
rural communities. The loan may be used
for business and industrial acquisitions,
construction, expansion, repair and
development costs. Certain conditions
apply to the use of funds for purchase of
equipment, machinery, supplies, start-up
costs and working capital.
Rural Development State Office
Rural Business-Cooperative Service (RBS)
771 Corporate Dr, Ste 200
Lexington KY 40503
859.224.7300
Fx: 859.224.7425
www.rurdev.usda.gov/ky/
Loans may be used for acquiring or
enlarging a farm, paying closing costs,
purchasing livestock, equipment supplies,
closing costs or conservation improvements.
US Dept of Agriculture
Farm Service Agency
Kentucky State Office
771 Corporate Dr, Ste 100
Lexington KY 40503
859.224.7601
Fx: 859.224.7691
www.rurdev.usda.gov/ky/
Export-Import Bank of the
United States
Guaranteed Farm Ownership and
Operation Loans
Loans administered by the Farm Service
Agency help farmers obtain commercial
credit to establish or maintain a farm or
ranch. Guarantees are provided that cover
up to 90% of the value of a new loan up to
$762,000 in rural communities of 50,000
or less population. Loans may be used for
purchase of land, capital improvements,
livestock, equipment, quotas and bases;
production, processing and marketing
purposes; payment of loan closing
costs, land and water development and
conservation, farm and home needs.
Working Capital Loan Guarantee
Program
The Export-Import Bank of the United
States (Ex-Im Bank) is a government agency
which assists export financing of U.S. goods
and services through loan, guarantee, and
insurance programs. Working capital loans
are guaranteed up to 90 percent of principal
and interest. Working capital loans must be
secured by inventory, accounts receivable,
or other appropriate collateral.
Proceeds may be used for pre-export
activities such as the purchase of inventory,
raw materials, the manufacture of a
product, or marketing.
Direct Farm Ownership and Operating Loans
Loans are awarded to farmers who are
US citizens unable to obtain credit to
traditional commercial sources that have
a good credit history and a demonstrable
ability to repay the loan. Maximum loan
amounts for both ownership and operating
loans are $200,000. Interest rates are
typically based on the government’s cost
of borrowing for regular loans and 4% for
down payment loans.
The Export Import Bank
202.565.3946
800.565.EXIM
www.exim.gov
Small Business Innovation
Research Program
The Small Business Innovation Research
Program (SBIR) awards grants for research
and development. The program is designed
to promote technology-based firms by
providing “idea money” to help develop
new technologies. Projects funded by SBIR
are usually too early, too high-risk or too
expensive for banks, venture capitalists,
or internal funding.A company must meet
research requirements identified above and
be a for-profit American firm with less than
500 employees. Firms may receive award
money in three phases. Phase 0 funding is
to support preparation of Phase 1 proposals
in amounts up to $4,000. Phase I is to
evaluate the technical merit and feasibility
of an idea. Awards are for periods of up
to six months in amounts up to $100,000.
Phase II is to expand on the results and
further pursue the development of Phase
I. Awards are for periods of up to two years
in amounts up to $750,000. Only those
companies awarded money in Phase I may
compete for money in Phase II.
U.S. SBA Office of Technology
409 Third St SW
Washington DC 20416
(202) 205-6450
www.sba.gov/sbir/
KSBDC Mone y Sources Directory
17

18. S tat e G o v e r n m e n t M o n e y S o u r c e s
State Government Money Sources
Kentucky Economic
Development Cabinet
Kentucky Economic Development
Finance Authority Direct Loan Program
The Kentucky Economic Development
Finance Authority (KEDFA) direct loan
program offers loans to work in conjunction
with private financing.
Eligible projects are agribusiness,
manufacturing, or service and technology
industries. No retail projects are eligible.
Projects must create at least one new fulltime job within one year of the loan closing
date.
KEDFA funds may only be used for fixed
asset financing. KEDFA can fund up to 100%
of the project costs, or the loan can be
used in conjunction with other lenders. All
loans will be secured with the highest lien
position available. KEDFA may participate
up to 25 percent of project fixed asset costs,
but amount of participation is based upon
the number of jobs created. Loan amounts
range between $15,000 and $100,000.
KEDFA will not lend more than the private
lending institution toward the fixed assets.
Dept of Financial Incentives
Old Capital Annex
300 W Broadway
Frankfort KY 40601
502.782.1978
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KSBDC Mone y Sources Directory
Industrial Revenue Bond Financing
Industrial Revenue Bonds (IRBs) are issued
by Kentucky’s state and local governments
to provide low-cost financing.
Bond funds can be used to finance the
entire project including engineering, land,
buildings, equipment, and issuance costs.
The primary advantage of IRB financing
is that interest income from the bonds is
exempt from federal income taxes, resulting
in a lower rate of interest for the money
used to finance the project. In addition,
state statutes declare that a facility financed
by IRBs is public property for as long as the
title is held by the public body that issues
the bonds. As public property, it is exempt
from all state and local property taxes,
except for a nominal state leasehold tax of
$.015 per $100 of leasehold value.
Department of Financial Incentives
Old Capital Annex
300 W Broadway
Frankfort KY 40601
502.782.1987
Fx: 502.564.7697
www.thinkkentucky.com/kyedc/kybizince.aspx
Kentucky Small Business Credit
Initiatives
Kentucky’s Cabinet for Economic
Development offers three new credit
enhancement programs thanks to an
allocation of federal funding received by
the United States Department of Treasury.
Kentucky’s allocation of funds have allowed
the Cabinet to increase the availability of
credit to small businesses by reducing the
risk participating lenders, credit unions
and community development financial
institutions assume.
Eligible borrowers include corporations,
partnerships, state-designated charitable,
religious, and other nonprofits,
government-owned corporations, consumer
and marketing cooperatives, and faithbased organizations, provided the loan is for
a qualified business purpose.
An eligible borrower must have 500 or fewer
employees and be Kentucky residents. Loan
proceeds can be used for eligible purposes
such as, but not limited to, start-up costs,
working capital, business acquisitions and
expansions, franchise financing, equipment
loans, inventory financing, owner occupied
commercial real estate acquisitions,
renovation and construction.
Kentucky Loan Participation Program
(KYLPP)
This program assists borrowers whose cash
flow does not meet a lender’s coverage
requirements by allowing the Cabinet to
purchase (or participate in) a portion of the
loan from the lender. Participating lenders
have the option of offering a grace period
for payment of interest and/or principal up
to 24 months.

19. S tat e G o v e r n m e n t M o n e y S o u r c e s
Kentucky Collateral Support Program
(KYCSP)
This program provides a pledged asset
(cash) to participating lenders to enhance
collateral coverage of the small business
owner that is otherwise qualified, but
unable to meet the lender’s security
requirement.
Kentucky Capital Access Program
(KYCAP)
Offers participating lenders loan portfolio
insurance by providing a matching
contribution to the lender’s loan loss
reserve account when they extend credit to
qualified, creditworthy small businesses. In
the case of a loss, lenders may draw against
the account to offset the loss.
To find a participating lender in your area,
or obtain additional information about the
programs, visit www.ThinkKentucky.com/
smallbizlending or contact Mark Johnson
at 800-626-2930 or email MarkL.Johnson@
ky.gov
Incentive Programs
Kentucky Rural Economic Development
Act (KREDA)
New and expanding manufacturing projects
under KREDA may potentially receive state
income tax credits and job assessment fees
for up to 100% of their capital investment
for up to 15 years on land, buildings,
site development, building fixtures and
equipment used in a project.
Kentucky Jobs Development Act (KJDA)
KJDA projects may receive a 100% credit
against the state income tax arising from
a project and may collect a job assessment
fee of up to 5% of the gross wages of each
employee whose job is created by the
project and who is subject to Kentucky
income tax. Amounts can be up to 50%
of project start-up cost and up to 50% of
annual facility rental cost or rental value for
up to 10 years. The local community must
approve the project prior to the submission
of an application.
Kentucky Industrial Development Act
(KIDA)
Similar to KREDA, this program is for new
and expanding manufacturing projects.
Projects approved under KIDA may receive
state income tax credits for up to 100% of
its capital investment for up to 10 years
on land, buildings, site development,
building fixtures and equipment used in a
project. Or, the company may collect a job
assessment fee of 3% of the gross wages
of each employee whose job is created by
the approved project and who is subject to
Kentucky income tax.
Kentucky Economic Opportunity Zone
Program (KEOZ)
Counties, urban county governments,
or cities of the first class apply through
KEDFA (see above) for certification of an
Opportunity Zone based on qualifying
census tract information. New or
expanding manufacturing or service/
technology companies may be permitted
the following inducements under the
KEOZ program: An income tax credit of
up to 100% of the Kentucky income tax
liability on income generated by or arising
out of the project; and a job development
assessment fee of up to 5% of gross wages.
Kentucky Investment Fund Act (KIFA)
KIFA provides tax credits to individuals and
companies that invest in approved venture
capital funds. Investors in KIFA approved
funds are entitled to a 40% credit against
Kentucky individual or corporate income
tax or Kentucky corporate license tax.
KEDFA (see above) approves investment
funds and fund managers.
Kentucky Cabinet for Economic
Development
Department of Financial Incentives
Old Capital Annex
300 W Broadway
Frankfort KY 40601
502.782.1987
Fx: 502.564.7697
www.thinkkentucky.com/kyedc/kybizince.aspx
KSBDC Mone y Sources Directory
19

20. S tat e G o v e r n m e n t M o n e y S o u r c e s
Linked Deposit Loan Program
The State Investment Commission invests
funds from the state’s Abandoned Property
Cash Account at a set rate with eligible
lenders. In turn, the financial institutions
agree to lend the proceeds of the funds
to eligible small business borrowers at
attractive rates.
Any Kentucky small or agricultural business
is eligible for the loans with the following
limitations:
1) Must be headquartered and maintaining
operations in Kentucky.
2) $1 million or less per year in gross annual
earnings
3) Fewer than 50 full time employees.
20
KSBDC Mone y Sources Directory
4) No applicant can be an officer or director
of eligible lending institutions.
The loans may be used for working capital,
interest costs, capital expenses and debt
refinancing. The maximum loan amount
is $100,000 with repayment due in seven
years. The interest rate is based on the
prime rate and collateral requirements are
negotiated by the borrower and the lender.
Linked Deposit Loan Program
Old Capital Annex
300 W Broadway
Frankfort KY 40601
502.564.7140
www.thinkkentucky.com/kyedc.
linkdeposity.aspx
Office of the New Economy
Innovation and Commercialization Centers
These centers are public/private
partnerships that will assist the state’s
entrepreneurs and scientists commercialize
technologies that demonstrate significant
market potential. Kentucky’s ICCs are
designed to serve two groups of clients:
the entrepreneur who wants to create
a technology-based company and the
scientist who wants to commercialize a
technology. ICCs will help scientists and
entrepreneurs understand the start-up
process and investment practices. The ICC’s
enlist a network of investors to review and
participate in funding entrepreneurs who
follow the ICC business process.

21. S tat e G o v e r n m e n t M o n e y S o u r c e s
Rural Innovation Fund
For use in rural Kentucky, this fund is
specifically for businesses with no more
than 150 employees. It is divided into
two phases. Phase I funds are a one time
investment of up to $7,500 to provide
capital for proof of concept and early stage
prototype development. Phase II funding is
only allocated after successful Phase I work.
It provides a maximum of $100,000 over a
two year period, not to exceed $50,000 in
any one year.
Research and Development Fund
This fund is reserved for Kentucky
businesses with less than 150 employees
who contract with a Kentucky university.
The R&D fund is for investment in
technology refinement, prototype and
commercial product development. The fund
amount is for a maximum of $200,000 not
to exceed $100,000 in any one year.
Kentucky Commercialization Fund
This fund is allocated for investment
in university based technology
commercialization. Up to $225,000 is granted
over three years, not to exceed $75,000 over
any one year period.
Kentucky ICC Office
Laurie Daugherty
200 W Vine St
Lexington KY 40507
lcdaugherty@kstc.com
859.246.3225
www.kyinnovation.com
ICC Satellite Offices
Ashland ICC
Mick Fosson
1400 Winchester Ave
Ste 600
Ashland KY 41101
606.326.2239
Bowling Green ICC
Doug Rohrer
2413 Nashville Rd, Ste B8
Bowling Green KY 42101
270.901.3490
Covington ICC
Casey Barach
535 Madison Ave, Ste 400
Covington KY 41101
859.292.7781
Elizabethtown ICC
Lisa Williams
RR Thomas Bldg
14 Public Sq, Ste 6
Elizabethtown KY 42701
270.765.1855
Lexington ICC
Warren Nash
330 E Main St, Ste 210
Lexington KY 40507
859.257.6871
Morehead ICC
Johnathan Gay
150 University Dr
West Liberty KY 41472
606.743.4005 x211
Murray ICC
Loretta Daniel
926 N 16th St
Murray KY 42071
270.809.6071
Owensboro ICC
Madison Silvert
200 E 3rd St, Ste 301
Owensboro KY 42303
270.663.1050
Paducah ICC
Ian Blacke
401 Kentucky Ave
Paducah KY 42003
270.443.1746 x220
Richmond ICC
Kristel Smith
BTC 041 - 521 Lancaster Ave
Richmond KY 40475
859.622.8571
London ICC
Bill Schutters
440 Old Whitley Rd
London KY 40744
859.806.8258
Louisville ICC
Tendai Charasika
614 W Main St, Ste 6000
Louisville KY 40202
502.625.0140
KSBDC Mone y Sources Directory
21

22. Regional Government Money Sources
Regional Government Money Sources
Area Development Districts
Loans for local businesses and
business start-ups may be available
through many city and county
governments and area development
districts (multi-county government
services planning agencies).
Loans are usually restricted to
$500,000 or less, or to a specified
amount per job created or saved.
The balance of financing for a
project must come from owner
equity or from other private or
public lenders. Terms and interest
rates are set by local government
lending agencies.
Barren River Area Development
District
177 Graham Ave
PO Box 90005
Bowling Green KY 42101
270.781.2381
FX: 270.842.0768
www.bradd.org
Big Sandy Area Development
District
110 Resource Ct
Prestonsburg KY 41653
606.886.2374
Fx: 606.886.3382 ext 208
www.bigsandy.org
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KSBDC Mone y Sources Directory
Bluegrass Area Development District
699 Perimeter Dr
Lexington KY 40517
859.269.0821
Fx: 859.269.7917
www.bgadd.org
Green River Area Development District
300 GRADD Way
Owensboro KY 42301
270.926.4433
Fx: 270.684.0714
www.gradd.com
Buffalo Trace Area Development
District
201 Government St
PO Box 460
Maysville KY 41056
606.564.6894
Fx: 606.564.0955
www.btadd.com
Kentucky River Area Development District
917 Perry Park Blvd
Hazard KY 41701
606.436.3158
Fx: 606.436.2144
www.kradd.org
Cumberland Valley Area
Development District
342 Old Whitley Rd
PO Box 1740
London KY 40743
606.864.7391
800.795.7654
Fx: (606) 878-7361
www.cvadd.org
FIVCO Area Development District
32 FIVCO Ct
Grayson KY 41143
606.929.1366
Fx: 606.929.1390
www.fivco.org
Gateway Area Development District
110 Lake Park Dr
Morehead KY 40351
606.780.0090
Fx: 606.780.0111
www.gwadd.org
KIPDA
11520 Commonwealth Dr
Louisville KY 40299
502.266.6084
Fx: 502.266.5047
www.kipda.org
Lake Cumberland Area Development
District
2384 Lakeway Dr
PO Box 1570
Russell Springs KY 42642
270.866.4200
800.264.7093
www.lcadd.org
Lincoln Trail Area Development District
613 College Street Rd
PO Box 604
Elizabethtown KY 42702
270.769.2393
800.247.2510
Fx: 270.769.2993
www.ltadd.org

23. Regional Government Money Sources
Mayor’s Office of Economic Development
200 E Main St
Lexington KY 40507
859.258.3100
http://www.lexingtonky.gov/index.
Northern Kentucky Area Development
District
22 Spiral Dr
Florence KY 41042
859.283.1885
www.nkadd.org
Pennyrile Area Development District
300 Hammond Dr
Hopkinsville KY 42240
270.886.9484
Fx: 270.886.3211
www.peadd.org
Purchase Area Development District
1002 Medical Dr
Mayfield KY 42066
270.247.7171
Fx: 270.251.6110
www.purchaseadd.org
TVA Loans: Southwestern Kentucky
This multimillion-dollar revolving loan
fund is designed to stimulate capital
investment and job creation in the TVA
region. Applications are evaluated based
on a project’s financial viability, its local
economic impact, the amount of funds
leveraged, and the expected increase in
power sales. Extra emphasis is given to
industrial expansion and relocation projects
in economically underdeveloped areas of the
valley. Eligible loans must be co-sponsored
by local government, a power distributor, or
an economic development agency.
New or expanding manufacturers in the
TVA’s 21-county service area located in
south central and western Kentucky may be
eligible for loans based on job creation and
electrical load.
These loans are available for companies to
finance fixed assets such as land, buildings,
or equipment. The funds cannot be used
for working capital. TVA participation in
these loans is normally limited to $5,000
per job created, with loans ranging from
$50,000 to hundreds of thousands of dollars
where project size warrants. Borrowers
must contribute a minimum of ten to fifteen
percent of project equity. Terms are usually
five to seven years on equipment and ten
years on property and plant. Rates are
subject to negotiation, but are generally set
below prime rate.
Tennessee Valley Authority
4537 Ft Campbell Blvd, Ste 103
Hopkinsville KY 42240
270.887.8466
and
6045 Russellville Rd
Bowling Green KY 42101
www.tva.gov
http://www.tvaed.com/loans.htm
TVA Supported Incubators
Business incubators are facilities designed
to help new businesses get started by
providing affordable rental space, onsite
support services, and technical assistance
(including financial and legal advice) in a
unique environment that fosters growth.
Firms housed in TVA-assisted business
incubators can apply for money from TVA’s
Business Incubator Loan Fund, a revolving
fund capitalized at $500,000 that is
designed to help young businesses meet
their short-term needs for cash flow and
operating capital. The largest loan amount
available is $25,000, for a maximum term of
one year. A loan request must be supported
by purchase orders, invoices, or accounts
receivable.
Regional Business Innovation Center
926 N 16th St
Murray KY 42701
270.809.6071
http://www.tvaed.com/busincub.htm
Rural Electrification (REA) Loans
Rural electrification (REA) loans are
interest-free loans available to qualifying
businesses that create jobs in rural areas
served by four Kentucky rural electric
cooperatives and two rural telephone
cooperatives. Qualifying businesses can
borrow from $10,000 to $400,000 with a
maturity of up to ten years.
Projects eligible for funding include new
and expanding manufacturing, industrial
buildings, agricultural processing,
telemarketing, recycling operations, water
and sewer extensions, and feasibility
studies.
Applications for REA loans are judged by
several factors including economic need
in the project area, jobs created, and
probability of long-term success. Processing
of applications can take from four to six
months.
KSBDC Mone y Sources Directory
23

24. Regional Government Money Sources
These cooperatives participate in the REA
business loan program in their service area:
Meade County RECC
Tim Gossett
Hwy 79 at Hwy 1051
P.O. Box 489
Brandenburg KY 40108
(270) 422-2162
Warren RECC
Heather Foley
951 Fairview Avenue
P.O. Box 1118
Bowling Green, KY 42102
(270) 842-6541
Mountain Association for Community
Economic Development
This is a private community development
corporation that provides loans, financial
planning, and technical assistance to
qualifying new and expanding companies
in the 49 Appalachian counties of eastern
Kentucky. MACED offers below-market
interest rates and innovative financing
options by packaging loans with both public
and private resources.
Local business start-ups and expansions
that create jobs and support local
community development and economic
expansion are eligible.
Loans range from $50,000 to $500,000 and
may be used to finance working capital or
purchase fixed assets. Maturities up to ten
years are available.
MACED
433 Chestnut Street
Berea, KY 40403
(859) 986-2373
Fax (859) 986-1299
http://www.maced.org
P RIVATE CA P ITA L
Private Capital
Private investment firms are formed by
high net worth individuals and vary widely
in their operating style and investment
preferences. Some are founded and run by a
single individual who makes all the decisions.
Others are comprised of several high net worth
individuals who empower an “investment
committee.” The level of operating control
expected by these investors will vary from
firm to firm- some seek a passive, minority
investment position while others want a board
seat and/or operating control.
Blue Equity, LLC
Jonathan S. Blue
502.589.8181
Preston Pointe
333 E Main St, Ste 200
Louisville KY 40202
www.blueequity.com
Alliance Group
Mike Pitino
502.253.6881
Louisville KY 40223
www.alliancegrouponline.com
Futurity Investment Group
Rod McNerney
502.583.3038
900 Baxter Ave
Louisville KY 40204
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KSBDC Mone y Sources Directory
Evermore Investments, LLC
Dean Holland
502.292.2393
11405 Park Rd, Ste 180
Anchorage KY 40223
www.evermoreinvestments.com
Pattco Ventures
Tom Dieruf
502.245.6623
10000 Shelbyville Rd
Louisville KY 40223
The Yearling Fund
Dale Boden
502.587.1860
Preston Pointe
333 E Main St, Ste 310
Louisville KY 40202
Anchorage Angels
Greg Chapman, Manager
808 Towner Pl
Anchorage KY 40223
gregchky@insightbb.com
anchorageangelsiii@gmail.com

25. VENTURE CA P ITA L
Venture Capital
Venture capital is funds from investors who
take an ownership role in the company.
These funds generally go to high growth
companies that offer above average rates
of return-on-investment, often as high as
30%. Business owners seeking these funds
must be willing to give up some control
of their company and plan to extract the
funds, including returns, from the business
in 5 to 7 years.
Chrysalis Ventures LLC
David A Jones, Jr
101 South Fifth Street, Suite 1650
Louisville, KY 40202
502.583.7644
www.chrysalisventures.com
Draper Triangle Ventures
Mark Richey
513.263.2732
30 W Third St, Sixth Floor
Cincinnati OH 45202
www.drapertriangle.com
Heron Capital
Shannon Rothschild
317.686.1950
1 Indiana Sq, Ste 2250
Indianapolis IN 46204
www.heroncap.com
River City Capital Funds
Ted Robinson
513.621.9700
221 E Fourth St, Ste 2400
Cincinnati OH 45202
Triathlon Medical Ventures
George Emont
502.410.1652
222 S First St, Ste 200
Louisville KY 40202
gemont@tmvp.com
www.tmvp.com
UPS Strategic Enterprise Fund
55 Glenlake Parkway NE
Bldg 1, 4th Floor
Atlanta GA 30328
sef@ups.com
Mountain Ventures Inc.
Kentucky Highland Investment
Corporation
362 Old Whitley Rd
P.O. Box 1738
London, KY 40743
606.864.5175
www.khic.org
Venture Connectors
550 S 4th St
Louisville KY 40202
502.719.0012
www.ventureconnectors.org
contact@ventureconnectors.org
Village Ventures, Inc
One Bank St
Williamstown MA 01267
413.458-0038
www.villageventures.com
Office for the New Economy
702 Capitol Ave, #256
Frankfort KY 40601
502.564.0531
Fax: 502.564.6684
ONE@mail.state.ky.us
www.one-ky.com/capital.html
Allos Ventures
John McIlwraith
513.723.2300
250 E Fifth St
Cincinnati OH 45202
www.allosventures.com
KSBDC Mone y Sources Directory
25

26. Seed Funds
Seed Funds
Seed funds provide the funds necessary to
start an enterprise and sustain it until it has
enough funds to sustain itself or where it
reaches a state where it has created something
in value that is worthy of future rounds of
funding. Seed money is usually used for such
preliminary operation such as market research
or product development. Seed Fund managers
will often seek a board position.
Commonwealth Seed Capital
Gene Fuqua
502.564.1910
300 W Broadway, Old Capital Annex
Frankfort KY 40601
csc@ky.gov
Kentucky Seed Capital Fund
George Emont & Steve Gailer
502.410.1652
222 S First St, Ste 200
Louisville KY 40202
www.kyseed.com
Cardinal Venture Fund
Prof. Van Clouse
502.852.4782
University of Louisville College of Business
Louisville KY 40292
business.louisville.edu/content/
view/450/625/”
The Vogt Invention and
Innovation Awards
Lisa Bajorinas
502.635.0133
Louisville, KY 40202
LBajorinas@GreaterLouisville.com
www.vogtawards.com
Venture Connectors
550 S 4th St
Louisville, KY 40202
502.719.0012
www.ventureconnectors.org
contact@ventureconnectors.org
Growing
Small
Businesses
502.625.0123
26
KSBDC Mone y Sources Directory

27. Angel Investors
Angel Investors
An Angel Investor is an affluent individual
or group of individuals who provide capital
for business start-up in exchange for equity
or convertible debt. Angels invest their
own money and often become mentors and
advisors to the companies in which they
invest.
Enterprise Angels
Tendai Charasika
502.625.0140
TCharasika@GreaterLouisville.com
Lisa Bajorinas
502.625.0133
LBajorinas@GreaterLouisville.com
614 W Main St Ste 6000
Louisville KY 40202
www.angelsoft.net/angel-group/
louisvilles-enterprise-angels
Innovation Angels
Paul Moses
Larry Mand
Purdue Research Park
3000 Technology Dr
New Albany IN 47150
502.645.8272
innovationangels@gmail.com
Louisville Angel Investor Network
Tom McMahon
502.561.1240
207 W Market St, Third Floor
Louisville KY 40202
Tom@GrowthServicesLLC.com
www.louisvilleangelnetwork.angelgroups.net
Bluegrass Angels & Bluegrass
Angel Venture Funds
Dean Harvey
859.257.1930
330 E Main St, Ste 210
Lexington KY 40507
www.bluegrassangels.com
Queen City Angels
Jim Cunningham
513.477.0809
4555 Lake Forest Dr, Ste 650
Cincinnati OH 45242
www.qca.com
Crowdfunding
Crowdfunding
Crowdfunding is a financing method that
involves funding a project with relatively
modest contributions from a large group of
individuals, rather than seeking substantial
sums from a small number of investors.
The funding campaign and transactions are
typically conducted online through dedicated
crowdfunding sites, often in conjunction
with social networking sites. Depending on
the project, campaign contributors may be
essentially making donations, investing for a
potential future return on investment (ROI),
or prepaying for a product or service.
Kickstarter.com
Kickstarter is the 800 pound gorilla in
crowdfunding, originally designed and
built for creative arts, many technology
entrepreneurs now use the site, some
reporting to have raised millions of dollars.
Rockethub.com
Rockethub is a broad platform targeting
“artists, scientists, entrepreneurs, and
philanthropists” on their site, using a keepwhat-you-raise model that rewards you for
hitting your funding goal (or penalizes you for
failing to hit it).
Indiegogo.com
Indiegogo allows you to raise money for
absolutely anything, using an optional “keep
what you raise” model with higher fees or
pay less to use an all-or-nothing funding
approach.
KSBDC Mone y Sources Directory
27

28. Mezzanine Financing
Mezzanine Financing
Mezzanine financing is also known as
subordinated debt, which ranks below senior
debt, but above equity in priority of payment.
When a company determines that it’s not
capable of financing its growth plans with
senior debt, the first step is to partner with
a financial institution to locate an investor
willing to provide capital in the form of
long-term subordinated debt, usually carrying
a fixed interest rate. Generally, these loans
do not involve ownership or management
participation; however they do include
success fees or warrants to purchase equity at
a later date.
28
KSBDC Mone y Sources Directory
A clear advantage of mezzanine financing
is the flexibility it affords both lenders and
borrowers. The parties can devise a mezzanine
package that contains just the right trade-off
between equity dilutions on the one hand and
interest charges on the other.
Many commercial lenders and private
investment firms offer Mezzanine financing.
You may want to consider mezzanine
financing if your company has a record of
strong cash flow and needs more funds than
traditional senior debt can supply.
Charles & Associates
320 Whetstone Alley #B
Cincinnati, OH 45202
513-621-5600
502.625.0123

29. N o n - p r o f i t O r g a n i z at i o n s
Non-profit Organizations
Kentucky Highlands Investment Corp
KHIS is a venture capital development firm
founded in 1968 to service Southeastern
Kentucky. KHIC maintains a multi-million
dollar capital pool and has numerous
investments in its portfolio ranging from
$100,000 to more than a million dollars.
KHIC helps small businesses through venture
capital debt and equity investments for
projects such as start-ups, expansions, and
relocations of manufacturing, distribution,
and services firms.
Appalachian Capital Corporation is a fund
which provides financing to viable businesses
located or locating in Southeast Kentucky.
The maximum loan amount is $250,000.
Proceeds may be used to finance the purchase
or construction of fixed assets, or for working
capital.
Micro Enterprise Loan Fund is designed
to encourage the development of small
businesses by extending credit and providing
technical assistance. Funds may be used for
the purchase of equipment or for working
capital for the business and loan terms cannot
exceed six years. A 5% minimum equity
investment and personal guarantee are
required.
Kentucky Highland Investment
Corporation
362 Old Whitley Rd
PO Box 1738
London KY 40743
606.864.5175
www.khic.org
Human/Economic Appalachian
Development, Inc. Community Loan
Fund
HEAD Community Loan Fund is a non-profit
revolving loan fund which provides loans to
individuals, cooperatives and organizations
starting or expanding small businesses in
Central Appalachia.
Loans are made to start-up or existing small
businesses in Southeastern Kentucky that
support the Appalachian culture.
Maximum loan amounts are $25,000 for
new businesses and $50,000 for existing
businesses. Interest rates vary between 8
and 12 percent and maturities range from
1 to 5 years. Loans are repaid in monthly
installments. A one percent loan fee is
charged upon approval of the loan.
HEAD Corporation
P.O. Box 504
Berea KY 40403
859.986.8423
www.headcorp.org
Metro Louisville
Metropolitan Business Development
Corporation (METCO)/Louisville Dept
of Economic Development Growth and
Innovation
METCO is a nonprofit corporation operating
on behalf of the city of Louisville/Jefferson
County that provides loans to small businesses
located within the city. Priority is given to
projects that provide maximum job creation
or that hire individuals from low to moderate
income families.
The Business Loan Program provides longterm loans up to $100,000 at near-market
rates to be leveraged with private sector
financing. Program loans make up the
difference between available private sector
financing and the funding necessary for a
project’s success.
Neighborhood Commercial Development Loan
Program makes available up to $10,000 per
storefront at 5% to businesses in target areas
for development and revitalization projects.
Minority Loan Program makes available up to
$100,000 at below market rate financing to
help leverage capital financing from private
sources for women and ethnic/minority
businesses.
METCO
444 S 4th St Ste 600
Louisville KY 40202
502.574.4140
www.louisvilleky.gov/economicdevelopment/
KSBDC Mone y Sources Directory
29

30. N o n - p r o f i t O r g a n i z at i o n s
Community Services & Revitalization
Microenterprise Loan Program
Many low to moderate income entrepreneurs
starting a new business have difficulty
securing traditional business financing. To
address these challenges, CSR provides loans
to help create or expand small businesses in
Louisville and Jefferson County
Loans awarded if the business meets certain
thresholds. CSR staff is required to monitor
the businesses monthly in addition to certain
other requirements.
Applicants must meet the following criteria:
• Must employ five or less employees
• Business owner(s) household income must
fall at or below 80% of AMI
• Business must be located within Louisville
Metro and the owner(s) must reside in
Louisville
• Must be willing to allow CSR staff to
monitor the business on a monthly basis
until the loan is paid in full
• Loans must be used for eligible activities
Community Services & Revitalization
810 Barrett Avenue
Louisville, KY 40204
502-574-5866 or 502-574-5186
www.louisvilleky.gov/CAP
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KSBDC Mone y Sources Directory
Southern Kentucky Economic
Development Corporation (SKEDC)
SKEDC provides financing for fixed assets
in qualified projects with a secured loan of
up to $10,000 per new job created, not to
exceed $250,000 or 45% of the project cost,
whichever is less. These funds may be used to
assist in the purchase of land, the purchase
of existing buildings, new construction, or
the purchase of equipment. The interest
rate is fixed for the life of the loan, and is
determined by the length of term.
Economic Development Loan Fund
The purpose of the Economic Development
Loan Fund is to enhance job creation by
providing below-market-rate, fixed-asset
financing to established manufacturing
industries which need assistance in
purchasing equipment or purchasing and
constructing new facilities. The maximum
loan is 45% of the project, not to exceed
$150,000. Projects must create one new job
per $10,000 invested, or have a significant
impact on the economic growth of a
community.
Small Business Loan Fund
Loan proceeds may be used by small
owners to finance the purchase and/or
construction of fixed assets, which includes
land, buildings, and equipment. The
maximum loan amount is the lesser of 45 %
of the total project cost or up to $250,000.
The minimum loan size is $25,000. Projects
must create one new job per $10,000
invested or have a significant impact on the
economic growth of a community.
The Southern Kentucky Economic
Development Corp.
2292 South Highway 27, Suite 340
Somerset, KY 42501
(606) 677-6100
Fax (606) 677-6010
www.southeastkentucky.com

32. Louisville Small Business Development Center
502-625-0123
SBDCInfo@UKy.edu
KSBDC.org/Louisville