Kentucky Agricultural Finance Corporation:
Programs
Linked Deposit Investment Program
Notice--The KAFC has been informed that funding for new Linked Deposit Loans may not be readily available. Funding for this program originates from the Commonwealth of Kentucky's Unclaimed and Abandoned Property Account. This limitation of funds does not affect current Linked Deposit borrowers, nor does it affect applicants or borrowers in any of the other KAFC loan programs. Lenders wanting to originate future Linked Deposit Loans are encouraged to contact our office for funding status before processing a new Linked Deposit Loan application.
The purpose of the Linked Deposit Investment Program is to provide financing assistance to any person or entity in Kentucky engaged in an agricultural endeavor.
To qualify for this program an individual or entity must meet certain requirements
including but not limited to:
- Applicant must be actively engaged in agricultural endeavors in Kentucky.
- Applicant must show annual gross earnings of no more than $1 million with at least 50% of that gross income from farming.
- Applicant cannot hold a position as an officer or director in an eligible lending institution.
- Maximum participation for any investment is $100,000.
The maximum loan term for this program is seven years, with interest rates equal to prime but never less than 5%. Investment commission rate to lender will equal prime minus 400 basis points, but never less than 2%.
Local lending institutions will make all credit determinations. KAFC will work as the liaison between local lenders and the State Investment Commission. Funds for the program are made available through the Kentucky Abandoned Property Account.
Disclaimer: This application is to be submitted only by lenders who are currently participating in the Linked Deposit Investment Program. If your financial institution is interested in participating in this program please contact our office for further details. The statutory authority for this program is located at KRS 41.600-41.620, which outlines the qualifications and terms of participation for this program. A search for the statute in its entirety may be conducted at http://lrc.ky.gov/statrev/frontpg.htm, the above links are to specific portions of the applicable statute.
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