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The state of Kentucky is set to receive extra funding that will be provided to various businesses that do not meet specific credit standards. The Governor of Kentucky also announced additional funds totaling approximately $5.1 million dollars that will be allocated via the U.S. Treasury Department. Nearly $15 million dollars has been awarded since the year 2011 and it is being given out in 3 separate disbursements. The initiative also works with lenders as 3 options are available for businesses and individuals who do not meet the specific underwriting standards.  A Secretary for Economic Development pinpointed that the 1st disbursement of approximately $4 million dollars assisted 50 businesses with various projects.

The KSBCI (Kentucky Small Business Credit Initiative) was initially implemented to increase the amount of credit and generate more jobs for businesses. 3 programs make up the KSBCI which include the Kentucky Capital Access Program, Kentucky Loan Participation Program and the Kentucky Collateral Support Program. The Kentucky Capital Access Program (KCAP) allows a lender to draw against an account in case that a loss is incurred. A type of business funding loan insurance is provided with the Kentucky Capital Access Program. The second program called Kentucky Loan Participation Program will assist a borrower who cannot meet the guidelines for receiving a loan. The borrower will be given a grace period of approximately 24 months. The Kentucky Collateral Support Program will give a “pledged asset” to a specific lender if they do decide to fund a specific business. Any specific loan that will be under the enhancement program will be required to meet the financing requirements.

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