KAFC Agricultural Processing Loan Program (APLP) (APLP)

A Kentucky Agricultural Finance Corporation participation loan for companies and individuals that add value to Kentucky-grown agricultural commodities through further processing. It covers equipment, new or expanded facilities, renovations and permanent working capital. KAFC lends up to 50% of the project, to a maximum of $250,000, at a fixed 2% alongside a participating Kentucky lender, who prepares and submits the application.

• Companies and individuals adding value to Kentucky-grown agricultural commodities through further processing.

• 'Project must be located on property in Kentucky.'

• Must borrow through a participating lender with offices in Kentucky.

• A three-year business plan 'showing an emphasis on serving the agricultural community'. Start-ups may need a feasibility study.

• Credit scores below 600 (or no score) go to the Loan Review Committee. Not eligible: operating or refinancing loans.

KAFC portion fixed at 2% a.p.r., with lender servicing up to 0.75%. Maximum term 15 years or the asset's useful life; real estate may amortize over 25 years with a 15-year balloon. Secured by fixed assets plus a personal guarantee. No prepayment penalty. Construction must start within 6 months and finish within 18 months.

Published amounts: Guidelines (APLP Revised: November 2025): 'maximum KAFC participation will be $250,000 or 50% of the project, whichever is less.' KAFC portion 'fixed at 2% a.p.r. for the life of the loan', plus lender servicing up to 0.75%. APLP is excluded from the $250,000 aggregate cap on KAFC loans.

Work with a participating Kentucky lender, who prepares and submits the KAFC application. KAFC now takes applications through its online database (contact KAFC@ky.gov). Deadlines are three weeks before the monthly KAFC board meeting.

Deadline text on the page: Rolling. 'The KAFC meets monthly to review and approve loan applications.' Applications are due three weeks before each board meeting. 'Loan applications should now be submitted through KAFC's new online database.'