About this programme
Kentucky Highlands Investment Corporation (KHIC) is a community development financial institution whose mission is to provide and retain employment opportunities in Southeastern Kentucky through community development, responsible investments, training, and management assistance.
KHIC serves a 22-county region of Southeastern Kentucky: Bell, Clay, Clinton, Cumberland, Estill, Harlan, Jackson, Knox, Laurel, Lee, Leslie, Letcher, Lincoln, Madison, McCreary, Owsley, Perry, Pulaski, Rockcastle, Russell, Wayne and Whitley counties.
It offers several financing products for small businesses in this territory, including Small Business Loans, Micro Enterprise Loans, Advanced Business Solutions Loans, Current Asset Leverage Financing, Equity Investments, a Freight Fund, SOAR Farm Loans, and Next Step Lending.
How it works
The core Small Business Loan product lends up to the lesser of 75% of project cost or $250,000, at a fixed rate set by risk assessment, over terms of 5 to 15 years. Loans are secured by a first lien on collateral plus a personal guaranty from the borrower(s), and the owner must cover at least 10% of total project cost in equity.
Micro Enterprise Loans range from $500 to $50,000, at fixed risk-based rates, for up to 6 years on non-real-estate loans or 10 years on real estate loans, with a minimum 5% owner equity requirement and similar collateral and guaranty terms.
Advanced Business Solutions Loans finance larger projects up to $10 million, again at fixed rates determined by risk, for working capital, equipment or real estate.
Who can apply
The business must operate within KHIC's 22-county Southeastern Kentucky service area.
For Small Business Loans, the owner must contribute at least 10% of total project cost as equity; for Micro Enterprise Loans, the minimum owner equity is 5%.
Financing is available for working capital, equipment and/or real estate needs.
How to apply
- Use the "Apply Now!" inquiry form on khic.org, or contact KHIC directly by phone or email to discuss financing options.
- Work with KHIC staff to determine which loan product (Small Business Loan, Micro Enterprise Loan, Advanced Business Solutions Loan, or another product) fits the project.
Frequently asked
How much can I borrow through KHIC's Small Business Loan?
Up to the lesser of 75% of project cost or $250,000, with terms from 5 to 15 years and a fixed, risk-based rate.
Is there a smaller loan option?
Yes. Micro Enterprise Loans range from $500 to $50,000, with terms up to 6 years for non-real-estate loans or 10 years for real estate loans.
What counties does KHIC serve?
A 22-county Southeastern Kentucky region: Bell, Clay, Clinton, Cumberland, Estill, Harlan, Jackson, Knox, Laurel, Lee, Leslie, Letcher, Lincoln, Madison, McCreary, Owsley, Perry, Pulaski, Rockcastle, Russell, Wayne and Whitley.
How much equity do I need to put in?
A minimum of 10% of total project cost for a Small Business Loan, or 5% for a Micro Enterprise Loan.
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Reviewed 2026-09-25. Programmes change, so check eligibility, amounts and deadlines on the official page before you apply. CapEasy is a private firm and is not part of any government body.