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Incentive Programs

State Incentives Major State Incentive Programs (Note: The fact sheets on this page require Adobe Acrobat Reader to view.)

Bluegrass State Skills Corporation – BSSC offers a Grant and a Tax Credit Program. To learn more about these programs visit the BSSC Programs section.

Kentucky Economic Development Finance Authority (KEDFA)
Kentucky Business Investment (KBI) Program
Kentucky Reinvestment Act (KRA)Other Business Incentives and Financing Programs

Other Business Incentives and Financing Programs – Fact sheet on programs provided by the Kentucky Cabinet for Economic Development.

Source: U.S. Department of Labor, Bureau of Labor Statistics.

Local Incentives Major Local Incentive Programs (Note: The fact sheets on this page require Adobe Acrobat Reader to view.)

City of Glasgow Revolving Loan Fund (GRLF) – The City of Glasgow has established a substantial Revolving Loan Fund to assist new and expanding industries with their efforts. The fund proceeds are for fixed asset financing only. The loan will have a low, fixed or variable interest rate, with the term determined by the type of asset financed. The amount of investment we can make in a particular project is based on the size of the proposed facility and the number of new jobs to be created. The typical loan is $10,000 per job created and no more than 25% of the total project cost with a maximum loan amount of $250,000.00 for a term of 5-10 years. The interest rate is usually variable and 2% above the 90 day U.S. Treasury bill rate at the time of closing.The City of Glasgow Revolving Loan Pool is participatory, working closely with local banks and state agencies to complete a financial package and is subject to their approval and ratification.

Glasgow Economic Development Loan (GEDL) – The City of Glasgow has established an Economic Development Loan to assist new and expanding industries with their efforts. The fund proceeds are usually for fixed asset financed at a very low fixed interest rate, with the terms determined by the type of asset financed. The total loan amount for any one project is based on the size of the proposed facility, the total project investment, the average plant wage, and the number of new jobs to be created. The typical loan is $10,000 per job created and no more than 25% of the total project cost with a maximum loan amount of $250,000.00 for a term of 5-10 years. This loan program has the flexibility to set its own interest rate and terms and can be structured as a forgivable loan based on the criteria set out above. This program would be implemented with the assistance of the Glasgow City Council and is subject to their approval and ratification.

Industrial Development Economic Authority (IDEA) Building Leaseback Program – The Glasgow-Barren County Industrial Development Economic Authority has in the past and will continue to facilitate a capitalized lease of your proposed new manufacturing plant. If approved, IDEA would coordinate financing of the project through a consortium of local banks that would jointly serve as the project’s financial lender. The following are the general terms and characteristics of such programs:

  • The bank group looks to the financial strength of the manufacturing company when making their credit decisions. Generally, such loans have been made at a variable rate equal to prime, and have been amortized over a 10 or 15-year period. The governmental agency serves strictly as the holding agent, and all financial liability or responsibility rests with the manufacturing entity.
  • Ownership of the building is held by a government agency, and the building is leased to the manufacturer for a monthly amount identical to the monthly principal and interest payment being made to the bank consortium.
  • The lease is a net-net-net lease and any additional maintenance; insurance, taxes or other expenses are the responsibility of the manufacturing company occupying the facility.
  • At any time during the life of the lease, the manufacturing company can purchase the building for a price equal to the balance of the loan, plus 3% of the project cost.

The terms of the capitalized lease payments would directly mirror the terms of the company’s finance arrangements (interest rate, term, amortization schedule, etc.) and the lease payments would mirror the financing payments.

Source: U.S. Department of Labor, Bureau of Labor Statistics.

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