KENTUCKY

Bill B. McCloskey, Director of Financial Services
Cyndi Hall, Financial Records Specialist
Kentucky Agricultural Finance Corporation
404 Ann St
Frankfort, KY 40601-1929
Telephone: (502) 564-4627 Ext. 235 FAX: (502) 564-0221
E-mail: billB.mccloskey@ky.gov or cyndil.hall@ky.gov
Website: http://kafc.ky.gov
Organization Began: 1984

Program/Project Title: Kentucky Agricultural Infrastructure Loan Program (AILP)
Program Began: 2005
Target Group: Kentucky agricultural producers
Description: The AILP is designed to assist Kentucky’s farmers in financing long-term projects that will improve their financial viability. These funds can be used to expand, remodel or construct buildings or farm structures for agricultural purposes only. A producer who can document tobacco history may qualify for 2 percent interest on KAFC loan funds. Applicants without tobacco income documentation can also apply for loans at a 4 percent rate. The interest rate can be fixed up to 15 years. All applicants must receive 20 percent of their gross income from farming. The loan must be serviced by a participating lending institution which must also provide a match of loan funds. The lender is allowed to charge the borrower up to an additional .75 percent on KAFC’s portion of the loan for origination and servicing. The other portion of the loan will be at the lender’s normal rate. The cap for an AILP loan is $100,000 or 50 percent of the project cost.

Program/Project Title: Beginning Farmer Loan Program (BFLP)
Program Began: 2005
Target Group: Beginning farmers
Description: The Beginning Farmer Loan Program (BFLP) is designed to assist experienced individuals who wish to create, expand or buy into a farming operation. Loan funds may be used to purchase land, equipment, livestock, facilities, or to buy into an existing partnership or LLC. This program has a limit of $250,000 or 50 percent of the outstanding debt held by the participating lender.

Program/Project Title: Agricultural Processing Loan Program (APLP)
Program Began: 2005
Target Group: Kentucky value-added processing companies
Description: The Agricultural Processing Loan Program (APLP) provides loan opportunities to companies that add value to Kentucky-grown commodities through processing. KAFC will also consider loan opportunities that provide marketing potential for Kentucky farmers. The APLP loan limit is $5 million

Program/Project Title: Coordinated Value-Added Loan Program (CVALP)
Program Began: 2005
Target Group: Kentucky entities who want to expand contract marketing opportunities for other farmers
Description: The Coordinated Value-Added Loan Program (CVALP) was created to offer loans to entities in Kentucky that are expanding their operation to provide new contracting opportunities to Kentucky farmers. KAFC will finance loans of up to $1,000,000 with a limit of $100,000 for each new grower opportunity created.

Program/Project Title: Diversification through Entrepreneurship in Agribusiness Loan Program (DEAL)
Program Began: 2010
Target Group: Kentucky agribusinesses owned by farmers who provide products and services to farmers
Description: The Diversification through Entrepreneurship in Agribusiness Loan Program (DEAL) is designed to assist limited Resource individuals with the establishment of or purchase into a business that provides agricultural products or services to other producers.

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