Browse Ambrook’s collection of funding programs by Kentucky Cabinet for Economic Development

Contact the Cabinet for Economic Development at (800) 626-2930 to discuss eligibility; application submitted to Cabinet staff for review, negotiation of terms and recommendation to KEDFA.

Deadline text on the page: Rolling; KEDFA reviews staff recommended loans and makes final decisions at its monthly meeting.

Kylee Palmer

Small Business Loan contact (fact sheet July 2022)

Kentucky Cabinet for Economic Development – Small Business Services Division

General office

Kentucky Cabinet for Economic Development

Fixed-rate KEDFA loans of $15,000–$100,000 for Kentucky small businesses (50 or fewer employees) in manufacturing, agribusiness, or service/technology to buy land, buildings, machinery and equipment or for working capital. One new full-time job must be created within a year of closing; rate tied to WSJ Prime plus a risk spread.



Business must have 50 or fewer employees; Business must be engaged in manufacturing, agribusiness or services and technology; One new fulltime job must be created by the business within one year of the loan closing.

A payment that must be returned to the provider following specified terms of repayment and interest rate.

Loan

3–10 years; fixed rate = WSJ Prime at closing + risk spread; up to 100% of project cost; $250 non-refundable application fee; 1.25% commitment fee; highest available lien position, personal guaranties may be required; cannot refinance existing bank debt.

Published amounts: Minimum loan is $15,000 and maximum is $100,000; The loan can be used for up to 100 percent of the project costs or be used in conjunction with other lenders; Loan terms are 3 – 10 year depending on the project.

Applying as a Buying Farmer
- Review the KSFTC Guidelines to confirm eligibility.
- Submit a KSFTC Beginning Farmer application (Found below) so that it is received by the Cabinet for Economic Development no later than twelve (12) months after the Sale of Agricultural Assets date (note: cannot submit a Beginning Farmer application until after the Sale of Agricultural Assets occurs).
Applying as a Selling Farmer
- Review the KSFTC Guidelines to confirm eligibility.
- Execute and effectuate a purchase contract for a Sale of Agricultural Assets;
- Submit a KSFTC Selling Farmer application (below) and supporting documentation so that it is received by the Cabinet for Economic Development no later than twelve (12) months after the Sale of Agricultural Assets to a Beginning Farmer, and pay the Selling Farmer application fee (note: cannot submit a Selling Farmer application until after the Sale of Agricultural Assets occurs)

Tim Back

The Kentucky Selling Farmer Tax Credit program encourages continued use of agricultural land for farming by granting tax credits to selling farmers who agree to sell agricultural land and assets to eligible buyers who will continue using the land for farming operations. Farmers wanting to sell agricultural land and assets may&#x2004;be eligible for a Kentucky income tax credit up to 5% of the sale price of qualifying agricultural assets, subject to a $25,000 calendar-year cap and $100,000 lifetime cap for sales to Actively Engaged Farmers, and a $50,000 calendar-year cap and $200,000 lifetime cap for sales to Beginning Farmers.


Selling farmers cannot have more than 50 full-time employees and must be the legal owner of the agricultural land and assets sold to a buyer. Sales involving immediate family members do not qualify for tax credit consideration.



The Kentucky Selling Farmer Tax Credit program encourages continued use of agricultural land for farming by granting tax credits to selling farmers who agree to sell agricultural land and assets to eligible buyers who will continue using the land for farming operations. Farmers wanting to sell agricultural land and assets may be eligible for a Kentucky income tax credit up to 5% of the sale price of qualifying agricultural assets, subject to a $25,000 calendar-year cap and $100,000 lifetime cap for sales to Actively Engaged Farmers, and a $50,000 calendar-year cap and $200,000 lifetime cap for sales to Beginning Farmers.

Selling farmers cannot have more than 50 full-time employees and must be the legal owner of the agricultural land and assets sold to a buyer. Sales involving immediate family members do not qualify for tax credit consideration.

A Selling Farmer must:
- Be a legal resident of Kentucky;
- If a legal entity required to register with the Kentucky Secretary of State, must be registered and in good standing with the Kentucky Secretary of State;
- Prior to a Sale of Agricultural Assets, is a small business with fifty (50) or fewer full-time employees, and is the sole legal owner of Agricultural Land and any other Agricultural Assets sold to a Beginning Farmer;

A Buying Farmer must:
- Be a legal resident of Kentucky;
- If a legal entity required to register with the Kentucky Secretary of State, must be registered and in good standing with the Kentucky Secretary of State;
- Possesses all licenses, registrations and experience needed to legally operate a Farming operation on Agricultural Land purchased from a Selling Farmer;
- Have not previously held an ownership interest in Agricultural Land used for Farming for a period exceeding ten (10) years;
- Prior to entering into a Sale of Agricultural Assets with a Selling Farmer, has no ownership interest in any of the Agricultural Assets included in the sale;
- Will provide a majority of the management, and will materially participate in the operation of a for-profit Farming operation located in Kentucky and purchased from a Selling Farmer, with the intent to continue for-profit Farming operations on the purchased Agricultural Land for a minimum of five (5) years after the Sale of Agricultural Assets date;
- No owners, or spouses of owners, are Immediate Family Members of any of the owners, partners, members, shareholders or trustees of the Selling Farmer from whom the Beginning Farmer is seeking to purchase Agricultural Assets.

A reduction or waiving of fees for meeting a certain criteria.

Discount

Succession

Historically Underserved

Legal & Finance

An application fee of $500 must be submitted with the Selling Farmer application. The fee is nonrefundable unless the application cannot be processed due to a lack of available tax credits. There is no application fee for the Beginning Farmer application.


Credit caps (Oct 2025 guidelines): 5% of the qualifying sale price; capped at $25,000 per calendar year and $100,000 lifetime for sales to Actively Engaged Farmers, and $50,000 per calendar year and $200,000 lifetime for sales to Beginning Farmers. The program sunsets 2031-12-31.

After meeting all eligibility requirements, fill out the KSBTC Application below and provide all required supporting documentation listed in the application form. $250 application fee if selected for KEDFA submission.

Deadline text on the page: Rolling; applications must be submitted within the twenty four month period after the first program requirement occurs. Shares a $3,000,000 per state fiscal year credit pool with KSFTC.

Peyton McElmurray

KSBTC contact (fact sheet July 2026)

Non-refundable Kentucky income tax credit of $3,500–$25,000 per year for for-profit small businesses (50 or fewer full-time employees) that hire and keep at least one new full-time employee for a year and buy at least $5,000 of qualifying equipment or technology. Open to nearly all industries, so a farm or agribusiness that adds a paid position and buys equipment qualifies.



Most businesses with 50 or fewer full-time employees are eligible; Hired and sustained at least one new job in the last year; Purchased at least $5,000 in qualifying equipment or technology; The new employee must have been on the payroll for at least one year; The new employee must earn at least $10.88/hour.

Non-refundable; unused credits may be carried forward up to five years; $25,000 maximum per applicant per calendar year.

Published amounts: Tax credit amount ranges from $3,500 to $25,000 per year depending on jobs created and investment made; lesser of $3,500 per eligible position or the rounded eligible dollar amount invested in qualifying equipment or technology.

List of Kentucky Cabinet for Economic Development Funding Opportunities