Loan funds maybe used for the following:

• land and building acquisition
• site improvements
• building construction
• building renovation and leasehold improvements
• machinery and equipment
• inventory purchase
• working capital

Debt refinancing is not an eligible cost, unless substantial tax base or job creation is increased or it improves KEDA's collateral position.


The KEDA loan may not exceed 33% (2 to 1 Leverage of KEDA Funding Assistance) of the eligible project cost. The loan amortization may vary depending on the use of funds and cash flow needs and will reflect the useful life of the assets being financed. The loan term will not exceed that of the financial institution. The interest rate, fixed for the term of the loan, will be based on the level of risk associated with the project. The rate will be calculated based on the interest rate when the loan is approved. Costs incurred by KEDA as part of the loan review and closing process may be passed on to the borrower. All loans are in the form of participation loans with a regulated lender.

Applications exceeding the financial capabilities of KEDA will be referred to other units of government for consideration. KEDA will continue to provide professional assistance based on board direction.


Applicants are encouraged to submit an application to determine project eligibility. Applicants may be asked to seek technical assistance before completing the application, or maybe referred to a more appropriate program if the project is determined to be ineligible. Application forms will be provided to applicants by KEDA staff. Other Financial Assistance

• Job Creation Grants
• Training Grants
• Lease Buydowns
• Equity Investments
• Tax Increment Financing
• Tax Abatement Financing
• Provide Land and/or Building
• Physical Infrastructure
• Telecommunication Space
• Professional Services With Other Entities