PeADD COVID-19 Business Relief Working Capital Loan Program

Beginning on July 1, 2020, the Pennyrile Area Development District will offer a working capital loan program to support local small businesses impacted by COVID-19.  Utilizing additional Economic Development Administration Revolving Loan Funds, the PeADD Board of Directors approved using these additional funds for loans ranging from $5,000 to $25,000.  These loans can be used to meet short-term working capital needs such as payroll, rent, utilities, interest payments, supplies, inventory management, and/or payments to suppliers.

Businesses must be located within one of the Pennyrile counties to be eligible to apply: Caldwell, Christian, Crittenden, Hopkins, Livingston, Lyon, Muhlenberg, Todd and Trigg.  Loan terms include a maximum of 36 months, with an optional six (6) month deferral from the date of loan closure.  Interest rates will range from 0.5% to 2.44%.  No closing fees will be charged unless appraisal or title work is required.  The business does have to provide any available collateral and show an ability to repay the loan.  Applications will be accepted until the funds are exhausted, or until June 30, 2022.

Priority will be given to projects that have the greatest impact on employment.  Additionally, projects should be in the industrial, commercial, agricultural, and service sectors.  Businesses that have received a loan through the SBA Paycheck Protection Program (PPP) or Economic Injury Disaster Loan (EIDL) for the same activity are not eligible to apply for this program.

An application packet for the PeADD COVID-19 Business Relief Working Capital Loan Program can be found at the Pennyrile ADD website, www.peadd.org.  You may also request an application by phone or email at 270-886-9484 or [email protected].