In addition to our loan programs and services GRADD houses the local Murray State Small Business Development Office for our area. From this office business owners can receive consultation on writing a business plan, compiling and evaluating financial statements, and a variety of other issues. For more information on available services visit the Kentucky Small Business Development Centers homepage, or contact Mickey Johnson at 270.926.8085 to schedule an appointment.
GRADD offers a variety of resources to help small businesses get started or expand to meet rising demand. Our programs are designed to provide "gap financing" to accompany other outside lending sources. We typically offer rates that are below what traditional banks offer which will enhance profitability of your project.
Follow one of the links below for more information on our loan programs.
Revolving Loan Fund Guidelines
- Projects must be located in Daviess, Hancock, Henderson, McLean, Ohio, Union or Webster Counties, Kentucky.
- Project must be in the industrial, commercial, service, agricultural or tourism sectors.
- The GRADD RLF may participate up to 50 percent of a project. The maximum loan amount for fixed assets is $100,000. The maximum loan for working capital is $50,000. In no case shall the total loan amount exceed $100,000 per borrower.
- The project owner(s) must inject a minimum of 10 percent of the total project cost.
- The RLF will require other lender’s participation in the project.
- Maximum RLF Terms:
- Working Capital 5 years
- Equipment 7 years
- Land & Building 15 years
- Applicants are required to have existing net working capital of at least twenty (20) percent of its total working capital needs.
- Projects must create new jobs, retain jobs or have a significant impact on the economic growth of a community.
- The interest rate charged on all loans will be prime rate as published in the Money Rates section of the Wall Street Journal minus four (4) percent.
- As appropriate and practical, financing will be secured with mortgages, liens or assignments of rights to assets of borrower. Personal guarantees will be required by all owners of the business.
- At least annually, all borrowers will submit company and/or personal financial statements as required by the Economic Development Corporation.
LOAN PROCESS
- Potential applicants should contact the GRADD office to discuss project eligibility and proposed financing structure.
- Following eligibility determination, an application must be submitted to GRADD for staff review and preliminary approval.
- Upon review and approval by staff, a $100 nonrefundable application fee will be collected.
- All applications must receive approval from each of the following before final approval is given:
- Green River Economic Development Corporation Loan Review Committee.
- Green River Economic Development Corporation Board of Directors.
- GRADD Board of Directors.
A closing fee will be charged to cover actual expenses incurred by GRADD to close a loan.
Click here for RLF Application
Print the application and fax to 270-684-0714
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