The Northern Kentucky Area Development District received a $500,000 EDA CARES Act Recovery Assistance grant to capitalize and administer a Revolving Loan Fund (RLF) to provide critical gap financing to small businesses and entrepreneurs adversely affected by the coronavirus pandemic. Business owners may apply for funds to meet short-term needs such as payroll, rent, utilities, supplies, inventory management, and/or payment to vendors.
- Loan Amounts - Loan requests between $5,000 and $50,000 will be considered
- Closing Costs - The borrower is responsible for all closing costs associated with the loan
- Interest Rate - Loans are assigned a fixed interest rate of 3%
- Repayment Terms - Borrowers may request a repayment period of up to five years with a six-month deferral period. The borrower may repay an RLF loan at any time without prepayment penalty.
- Collateral - Personal guarantees will be required. Loan amounts above $10,000 may require additional collateral.
The applicant must be an existing business legally established in one of the eight counties that comprise the NKADD service region: Boone, Campbell, Carroll, Gallatin, Grant, Kenton, Owen, or Pendleton. The business must be able to prove that they have been economically impacted by the COVID-19 pandemic and be in the industrial, commercial, or service sectors.
NKADD COVID-19 Business Relief Application
2019 tax return
Current record of financial condition of business, including an income statement and balance sheet
Credit Check Authorization Form for all owners with 20% or greater ownership
Payroll verification documents, copy of lease agreement or mortgage statement, last two months utility statements, and/or inventory purchase agreements may be requested depending on the use of funds requested.