Kentucky Agricultural Finance Corporation:
Programs

Coordinated Value-Added Assistance Loan Program

The Coordinated Value-Added Assistance Loan Program is designed to provide loan opportunities to companies and individuals in Kentucky who create contract production opportunities for other agricultural producers.

KAFC will provide and/or participate in loans to entities with operations in Kentucky that are expanding their contracting opportunities with Kentucky farmers. Funding 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 Coordinated Value-Added Assistance 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 more information on the program guidelines or to obtain an application, click on one of the links below:

• Coordinated Value-Added Assistance Loan Program Guidelines (.pdf, 139 KB)
   
• Application - Project Costs Under $1 M (.doc, 178 KB)
   
• Application - Project Costs Over $1 M (.doc, 155 KB)
   
• Co-applicant Addendum(.doc, 133 KB)

Updated: Nov. 23, 2011