A Source of Capital for New and Expanding Businesses

The FIVCO Area Development District’s Revolving Loan Fund (RLF) program is a locally controlled source of capital used to help finance start-up and expanding businesses whose projects will create jobs. The RLF is NOT a substitute for conventional lending sources and is intended only to fill the credit gaps in existing local financial markets. As borrowers repay their loans, the payments are returned to the Revolving Loan Fund to make loans to other businesses. In this manner, the fund becomes an ongoing, or revolving, financial tool. The following information is provided as a general overview of the RLF program.

Eligibility Criteria

Businesses located in Boyd, Carter, Elliot, Greenup, and Lawrence counties in Kentucky are eligible for RLF financing. Both the business and its owner(s) must be creditworthy and generate sufficient cash flow to repay the debt. Financing will not be extended to firms whose projects relocate jobs from one labor area to another. The proposed project must create new jobs or have a significant impact on job retention in the region.

Rates & Terms of an RLF Loan

Interest rates for RLF loans are determined on date of loan closing. Terms for loans are determined on a case-by-case basis.

Targeted Uses of Funds

Proceeds from RLF loans can be used to:

  • Purchase machinery and equipment
  • Provide permanent working capital

RLF loans cannot be used to retire or refinance existing debt or to purchase equity in a business.

Bank Participation

The RLF was not established to compete with the banking community or to be a lender of last resort. The RLF is designed to “fill the gap” between what a bank can reasonably lend on a project and what the business can provide in equity. The RLF should complement the lending activities of commercial banks.

RLF Policies

  • Projects financed must be within the FIVCO ADD (Boyd, Carter, Elliott, Greenup, & Lawrence counties)
  • Projects must create new jobs or have significant impact (job retention) on the economic growth of an area
  • FIVCO RLF caps loans at a maximum of $20,000 per job
  • Loan limit per application is $250,000
  • FIVCO may not participate in a loan without other financial lender participation
  • As appropriate and practical, financing will be secured with personal guarantees, mortgages, liens, or assignment of rights in assets of the applicants
  • 10% owner equity investment is required
  • Preferred financing structure:

Bank & Owner Investment: 51%
RLF: 49%
Total Project Cost: 100%

  • Non-refundable application fee of $250

Funding for the RLF program is provided by the Economic Development Administration (EDA) and the FIVCO Area Development District. The program is administered locally by the FIVCO ADD.

Application Process

All applicants need to fill out an RLF Application and submit it along with the required documents (listed at the bottom of the application).

RLF Application along with any other inquiries or questions about the Revolving Loan Fund Program, please send/contact Janey Orcutt at janey@fivco.org or call 606-929-1366.

Loan Application