Kentucky Agricultural Finance Corporation:
Agricultural Processing Loan Program
The Agricultural Processing Loan Program is designed to provide loan opportunities to companies and individuals in Kentucky interested in agricultural processing.
KAFC will provide and/or participate in loans in Kentucky that add value to Kentucky grown agricultural commodities through further processing. Funding opportunities will be made available to entities interested in any of the following:
- Acquisition of equipment
- Construction of new facilities
- Renovation of existing facilities
- Expansion of existing facilities
- Permanent working capital
Projects with total costs over $1 million may be direct loans with interest based on Wall Street Journal prime rate. Direct loans cannot exceed 20 years or the useful life of the items being financed.
Projects with total costs under $1 million will be required to be a participation loan, following the terms in the Ag. Processing Loan Program Guidelines (see below). For these type projects the maximum loan will be $150,000 not to exceed 50% of the project with a term no longer than 15 years or the useful life of the asset.
For an application, click on the link below:
Updated: Nov. 23, 2011