KRS 154.20-180: Business networks revolving loan fund -- Eligibility for assistance --

Administration of fund.

(1) Any business firm that is a member of an approved business network comprising

individual firms, companies, agricultural business entities, or industr ial entities that

have been identified as key industries and that have been targeted by the state's

economic development strategic plan as eligible for priority consideration for state

assistance shall also be eligible for state assistance under the provis ions of this

section.

(2) A business networks revolving loan fund shall be established and shall be

administered by the Kentucky Economic Development Finance Authority. The fund

shall be maintained and credited with repayments and the fund balance shall be

available in perpetuity to provide loans at or below market rates at terms not to

exceed thirty (30) years to members of approved business networks to support the

development and production of new and expanded products and production

facilities, including, but not limited to, financing development and construction of

value-added food and fiber production facilities, accelerating modernization of

production systems, and making of new technology investments. The maximum

amount of loans made available to any member of an approved business network

shall not exceed ten percent (10%) of the total amount of available funds.

(3) The Kentucky Economic Development Finance Authority shall cause to be

established and implemented fiscal controls and accounting procedure s sufficient to

assure proper accounting during appropriate accounting periods for payments and

disbursements received and made by the fund and for fund balances at the

beginning and end of each accounting period.

(4) In addition to powers and authorities otherwise granted the Kentucky Economic

Development Finance Authority, the authority may:

(a) Make and condition loans from the fund as required by state or federal law;

(b) Enter into any necessary or required agreement and give or make any

necessary or r equired assurance or certification with any person or entity to

receive payments or to make or to provide loans;

(c) Guarantee or purchase insurance for obligations of the fund where the action

would improve credit market access or reduce interest rates;

(d) Receive money from any public or private source to implement the purposes

of this section;

(e) Approve or reject applications made to it for loans from the fund, and

establish standards applicable thereto;

(f) Provide for the issuance of revenue bonds a nd bond anticipation notes as

prescribed by KRS 154.10-035 for the purposes as set forth in this section;

(g) Promulgate administrative regulations implementing the purposes of this

section in accordance with KRS Chapter 13A; and

(h) Do all things necessary and convenient to achieve the objectives and purposes

of this section which are not otherwise prohibited by state law.

(5) In carrying out the objectives and purposes of this section, the authority shall

consult with the Kentucky Department of Agricultur e regarding development of

standards and conditions applicable to agribusiness and agriculture related loan

applications.

(6) Nothing contained herein shall preclude the authority from contracting with or

acquiring services from any state agency or institu tion regarding implementation of

this section.