Ky. gets $5.1M more for lending programs

Frankfort: Gov. Steve Beshear announced Monday that Kentucky had secured an additional $5.1 million for the state’s small businesses through a second disbursement from the U.S. Treasury Department’s State Small Business Credit Initiative.

The credit initiative is a financing option that works in partnership with participating lenders. Lenders may use three Kentucky-specific credit enhancement options to strengthen loan requests that are credit-worthy in nature but fall just outside of acceptable underwriting standards. The credit initiative bridges the gap, making it possible for lenders to finance more small businesses.

The state was awarded a total allocation of $15.4 million through the Treasury in July 2011 and is receiving the funding in three separate disbursements. Kentucky is receiving its second disbursement after expending $4.218 million, or 82.5 percent, of its first disbursement to support loans to small businesses. To date, the federal funds have generated $37 million in private sector financing to Kentucky companies.

Kentucky’s funding is administered by the Cabinet for Economic Development’s Office of Entrepreneurship.