Kentucky Enterprise Fund is a grant from the Kentucky Economic Development Finance Authority (KEDFA) that funds loans and equity investments for businesses demonstrating growth potential in Kentucky. Administered within the Cabinet for Economic Development, KEDFA supports business expansion, job creation, and long-term economic growth across the Commonwealth through an array of financial assistance and tax credit programs.

Eligible applicants are Kentucky small businesses that can demonstrate growth potential; applicants work with a professional economic development agent throughout the application process. KEDFA meets the last Thursday of each month, and projects must be submitted by the last Friday of the prior month. Award amounts typically range from ,000 to ,000.

Kentucky Financial Incentives | Kentucky Cabinet for Economic Development Financial Incentives & Programs Kentucky's pro-business climate provides a number of incentives for businesses.

The Kentucky Economic Development Finance Authority (KEDFA), established within the Cabinet for Economic Development to encourage economic development, business expansion, and job creation, provides financial support through an array of financial assistance and tax credit programs. Helping businesses in this way furthers the Commonwealth's goals of achieving long-term economic growth and employment opportunities for its citizens.

KEDFA approval is required for participation in the loan and tax incentive programs, except the Skills Training Investment credits, which are approved by the Bluegrass State Skills Corporation (BSSC). KEDFA meets the last Thursday of each month. Projects must be received by the last Friday of the month prior to the KEDFA meeting date in order to be considered.

To find out if your business qualifies contact the Department for Business Development where a professional economic development agent will be assigned to work with you. Your agent can answer your questions and guide you through the application processes.

New Administrative Regulation The Cabinet for Economic Development has filed a new administrative regulation relating to the application and fee structure of financial incentives administered by the Kentucky Economic Development Finance Authority, which can be found here: 307 KAR 1:006 – Applications and Fee Structure for Kentucky Incentive Programs under KEDFA A public hearing on this administrative regulation shall be held on January 21, 2026, at 10:00 a.

m. Eastern Time at the Cabinet for Economic Development, Mayo Underwood Building, 500 Mero Street, Frankfort, Kentucky 40601. Individuals interested in being heard at this hearing shall notify this agency in writing by five workdays prior to the hearing, of their intent to attend.

If no notification of intent to attend the hearing is received by that date, the hearing may be canceled. This hearing is open to the public. Any person who wishes to be heard will be given an opportunity to comment on the proposed administrative regulation.

A transcript of the public hearing will not be made unless a written request for a transcript is made. If you do not wish to be heard at the public hearing, you may submit written comments on the proposed administrative regulation. Written comments shall be accepted through January 31, 2026.

Send written notification of intent to be heard at the public hearing or written comments on the proposed administrative regulation to the contact person. CONTACT PERSON: Matthew Wingate, General Counsel, Cabinet for Economic Development, Mayo Underwood Building, 500 Mero Street, Frankfort, Kentucky 40601, phone: (502) 782-1948, fax (502) 564-3256, email: matthew. wingate@ky.

gov. New and Expanding Industry Kentucky Business Investment (KBI) Program – (PDF) Provides income tax credits and wage assessments to new and existing agribusinesses, headquarters operations, manufacturing companies, coal severing and processing companies, hospital operations, alternative fuel, gasification, energy-efficient alternative fuels, renewable energy production companies, carbon dioxide transmission pipelines and non-retail service or technology related companies that locate or expand operations in Kentucky.

Projects locating in certain counties may qualify for enhanced incentives. Click here to view a map of the enhanced incentive counties.

Kentucky Enterprise Initiative Act (KEIA)(PDF) For new or expanded companies engaged in manufacturing, non-retail service or technology activities, agribusiness, headquarters operations, coal severing and processing, hospital operations, alternative fuel, gasification, energy-efficient alternative fuels, renewable energy production companies, carbon dioxide transmission pipelines, or tourism attraction projects in Kentucky.

KEIA provides a refund of Kentucky sales and use tax paid by approved companies for building and construction materials permanently incorporated as an improvement to real property. It is also available for Kentucky sales and use tax refunds for eligible equipment used for research and development, data processing equipment or flight simulation equipment.

Direct Loan Program (KEDFA) (PDF) KEDFA encourages economic development business expansion and job creation by providing business loans to supplement other financing. The Direct Loan Program provides loans at below-market interest rates (subject to the availability of state revolving loan funds) for fixed asset financing for agribusiness, tourism, industrial ventures, or the service industry. Retail projects are not eligible.

Industrial Revenue Bonds - IRB (PDF) IRBs issued by state and local governments in Kentucky can be used to finance manufacturing projects and their warehousing areas, major transportation and communication facilities, most health care facilities, and mineral extraction and processing projects. Click here for the IRB Procedures.

Community Development Block Grants Loans - CDBG Federally funded low interest loans made available through the Department for Local Government. Kentucky Qualified Data Center Project Incentive Program – (PDF) Provides sales and use tax exemption incentives for an approved company with a qualified data center project. Resources and programs applicable to cryptocurrency mining and related projects.

Kentucky Reinvestment Act (KRA) - (PDF) Provides tax credits to existing Kentucky companies engaged in manufacturing, agribusiness, non-retail service or technology activities, headquarters operations, hospital operations, coal severing and processing, alternative fuel, gasification, energy-efficient alternative fuels, renewable energy, or carbon dioxide transmission pipelines on a permanent basis for a reasonable period of time that will be investing in eligible equipment and related costs of at least $2,500,000 for owned facilities and $1,000,000 for leased facilities (excluding rent).

Kentucky Rural Hospital Loan Program The Rural Hospital Loan Program offers low-interest loans to assist rural hospitals by providing funding for the purpose of maintaining or upgrading hospital facilities, maintaining or increasing the staff at a rural hospital, or providing health care services not currently available to citizens in a rural Kentucky county.

For additional information on hospital incentives, see the Hospital Information Sheet . List of approved Rural Hospital Loans Kentucky Entertainment Incentive (KEI) Program Designed to encourage the development of the entertainment and production industry in Kentucky. The incentive provides qualifying applicants the ability to recover a portion of qualified expenditures through a refundable tax credit.

Guidelines . List of approved KEI Projects SBIR-STTR Matching Funds Program The Cabinet will match, on a competitive basis, Phase 1 and Phase 2 federal Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) awards received by Kentucky high-tech small businesses and those willing to become Kentucky-based businesses.

This includes matching Phase 1 federal awards up to $100,000 to support the exploration of the technical merit or feasibility of an idea or technology, and up to $150,000 of federal Phase 2 awards, which support full-scale research and development.

Commonwealth Seed Capital, LLC Commonwealth Seed Capital, LLC, (CSC) is an independent fund that makes debt or equity investments in early-stage Kentucky business entities to facilitate the commercialization of innovative ideas and technologies.

Investments are typically made in these specified innovation areas: health and human development; information technology and communications; bioscience; environmental and energy technologies; and materials science and advanced manufacturing. CSC invests in companies that have a significant Kentucky presence, the prospect for substantial growth, and the potential to generate an appropriate rate of return.

For more information, contact: Commonwealth Seed Capital, LLC 300 West Vine Street, Suite 600 Lexington, Kentucky 40507-1751 robert. lamothe@commonwealthseed. com The Kentucky Enterprise Fund provides seed-stage capital to Kentucky-based companies that are commercializing a technology-based product or process.

The funds exist to stimulate private investment in Kentucky-based technology companies with high growth potential. The Kentucky Science and Technology Corporation administers the funds. Kentucky Nuclear Energy Development Authority (KNEDA) (PDF) The Kentucky Cabinet for Economic Development (CED) welcomes the chance to be a part of the Kentucky Nuclear Energy Development Authority.

More information is also available on the Authority website . Kentucky New Energy Ventures Fund The Kentucky New Energy Ventures Fund provides seed stage capital to support the development and commercialization of alternative fuel and renewable energy products, processes, and services in Kentucky. The funds exist to stimulate private investment in Kentucky-based technology companies with high growth potential.

KNEV makes grants of $30,000 and investments ranging from $250,000 to $750,000+. Qualified companies must be Kentucky-based and funds are to be used for business development activities. Please be advised that there is no available funding at this time for the Kentucky New Energy Ventures Fund.

Incentives for Energy-related Business Act (IEBA) (PDF) Companies establishing a cryptocurrency facility in Kentucky may be eligible for incentives through the IEBA program if the facility incurs eligible investment costs of at least $1,000,000. Potential incentives include sales and use tax refunds, corporate income or LLET tax credits, or employee wage assessment incentives.

Entrepreneurs & Small Business Kentucky Small Business Credit Initiative (KSBCI) Designed to generate jobs and increase the availability of credit by reducing the risks participating lenders assume when making loans to small businesses. Using three distinct credit enhancement programs, KSBCI will help lenders finance creditworthy small businesses that would typically fall just outside of their normal lending guidelines.

Quarterly Reports Small Business Loan Program (PDF) The Small Business Loan Program is designed to help small businesses acquire funding needed to start or grow their small business. A small business must be engaged in manufacturing, agribusiness, or service and technology. Loan funds may be used to acquire land and buildings, purchase and install equipment, or for working capital.

The minimum loan amount is $15,000 and the maximum is $100,000. The approved company must create one new full-time job within one year of the loan closing. KEDFA can fund up to 100 percent of the project costs and the loan can be used in conjunction with other lenders.

The term of the loan can range from 3-10 years. The Kentucky Small Business Tax Credit (KSBTC) The KSBTC program is designed to encourage small business growth and job creation by providing a nonrefundable tax credit to eligible businesses hiring one or more eligible individuals and investing at least $5,000 in qualifying equipment or technology.

With certain exceptions, most for-profit businesses with 50 or fewer full-time employees are considered eligible for this program. The KSBTC program has a limited allocation of available tax credits. Guidelines | Fact Sheet U.S. Small Business Administration Federal agency that provides a number of guaranteed loan and other financial assistance programs to small businesses.

Angel Investment Tax Credit The Kentucky Angel Investment Tax Credit offers a credit of up to 40 percent of an investment in Kentucky small businesses. Prior to investment, both the investor and small business must submit applications for certification. Each investment must be certified in advance, as well.

Refer to the Kentucky Angel Investment Act Guidelines for program details and qualifying criteria. Guidelines VenCap Kentucky is designed to increase business’ access to seed, early and expansion stage capital by providing venture capital funding to entrepreneurs who have attracted a lead investor. Companies must be located in Kentucky and have fewer than 500 employees.

For more information and to apply, visit www. VenCapKentucky. com Bluegrass State Skills Corporation (BSSC) Skills Training Investment Credit Provides credit against Kentucky income tax to existing businesses that sponsor occupational or skills upgrade training programs for the benefit of their employees.

Bluegrass State Skills Corporation Grant Reimbursement Program provides matching grant funds for customized business and industry-specific training programs. Tax Increment Financing (TIF) Tax Increment Financing (TIF) Tax Increment Financing (TIF) is an economic development tool to use future gains in taxes to finance the current public infrastructure improvements for development that will create those gains.

List of approved TIF Projects Agri-business Opportunities Kentucky Agricultural Development Fund The Kentucky Agricultural Development Fund provides incentives for innovative proposals that increase net farm income, stimulates markets for Kentucky agricultural products, creates new ways to add value to Kentucky agricultural products, and explores new opportunities for Kentucky farmers.

For more information visit the Kentucky Office of Agricultural Policy’s website, https://www. kyagr. com/agpolicy/ or call (502) 564-4627.

Kentucky Agricultural Finance Corporation The Kentucky Agricultural Finance Corporation provides capital access for agricultural diversification and infrastructure projects. Participating Loan Programs Include: Agricultural Infrastructure, Beginning Farmer, Diversification through Entrepreneurship in Agri-business and Large Animal Veterinary Programs.

Direct Loan Programs include the Agricultural Process Loan Program and the Coordinated Value-Added Assistance Loan Program. For more information visit the Kentucky Office of Agricultural Policy’s KAFC website, https://www. kyagr.

com/agpolicy/Kentucky-Ag-Finance-Corporation. html or contact Bill McCloskey at (502) 564-4627. Kentucky Selling Farmer Tax Credit (KSFTC) 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 annual and lifetime tax credit caps.

Guidelines Other Business Incentives and Financial Programs Kentucky Investment Fund Act - KIFA Fact Sheet (PDF) KIFA provides tax credits to individuals and companies that invest in eligible small businesses through venture capital funds that have been approved by the Kentucky Economic Development Finance Authority (KEDFA).

Investors in KIFA approved funds may be eligible for a tax credit against Kentucky individual or corporate income tax or Kentucky corporate license tax. EB-5 is an opportunity for immigrants to invest in the United States in exchange for green card eligibility for themselves and qualifying family members. The following tourism-related incentives are administered through the Kentucky Tourism, Arts and Heritage Cabinet.

The Tourism Development Act provides developers of approved new or expanding tourism projects the ability to recover up to 25 percent of the project’s development costs over a 10-year term. Projects including, but not limited to, lodging facilities constructed on state park, federal park or national forest lands are eligible to recover up to 50 percent of the development costs over a 20-year term.

307 KAR 1:006 – Applications and Fee Structure for Kentucky Incentive Programs under KEDFA Kentucky Cabinet for Economic Development