Kentucky Highlands Community Development Corp. has received a $125,000 grant from Bank of America to assist with its small-business loan program.
The funds will help guarantee repayment of loans made from Kentucky Highland’s Micro-Enterprise Loan Fund, which recently received another round of funding from the Small Business Administration. A total of $750,000 is available to small businesses as a result. As many as 24 local companies are expected to receive microloans from the new effort.
“It is through these small, locally owned companies that we can rebuild the economy,” said Jerry Rickett, president and CEO of Kentucky Highlands. “The investment from Bank of America and the Small Business Administration will help provide crucial access to capital. There are 40,000 small businesses that employ one to four people in KHIC’s 22-county service area. If only 10 percent of those businesses hired just one additional person, we would be creating 4,000 jobs.”
New and expanding businesses are eligible for loans, with the exception of businesses engaged in gambling, speculation lending or investments, pyramid sales and floor planning. Businesses also must meet the Small Business Administration’s size requirements and be located in Kentucky Highlands’ service area.