KRS 154.12-330: Authorization to develop and fund small business loan program --

$100,000 limit -- Requirements.

(1) The Kentucky Economic Development Finance Authority is hereby authorized to

develop and fund a small business loan program to assist new or existin g small

businesses operating in the Commonwealth. The authority may lend up to one

hundred thousand dollars ($100,000) to any eligible small business for acquisition,

construction, expansion, working capital, or any other business expense the

authority deems reasonable to approve.

(2) The authority shall determine the terms, conditions, and requirements for loans

issued under this section, including collateral requirements when deemed

reasonable and appropriate. Recognizing that small businesses, while esse ntial for

the economic vitality of the Commonwealth, may have difficulty obtaining

conventional loans, the authority may provide terms that are more lenient, high-risk,

less secure, or otherwise less stringent than industry standards.

(3) To be eligible fo r a loan under this section, a small business shall be engaged in

manufacturing, agribusiness, or service or technology, shall not be engaged

primarily in retail, and shall commit to creating and maintaining at least one (1) new

full-time job above the number existing on the date of application.