KHIC President and CEO Jerry Rickett recently spoke at the SOAR Summit about SOAR Small Production Loan Fund, which is growing with the support of the Kentucky Agricultural Development Fund (KADF).
Kentucky Highlands Investment Corporation has further capitalized and continues providing financing for small farmers in the SOAR counties of Eastern Kentucky through low-interest, favorable term loans that help farmers expand production or move into a new agricultural venture.
This important tool was established more than 10 years ago through an initial $950,000 in capitalization from the Kentucky Agricultural Development Fund investing tobacco settlement funds.
To date, funding includes $1.4 million from KADF, $50,000 from Appalachian Community Capital and $50,000 from the Opportunity Finance Network.
Because it is a revolving loan fund, there have been 472 SOAR Small Farm Loans totaling more than $4.3 million. This means the KADF funds have now more than tripled.
Loans have been made in 52 of the 54 Appalachian counties of Kentucky.
How the SOAR Farm Loan Fund Works:
- Loans up to $10,000
- Interest rate fixed at 1%
- No fees
- Term of the loan is 5 years
- Interest-only due the first year collected at closing
- Monthly or annual payments
- Collateralized with non-livestock item
- Most any agricultural related use is eligible
- All 54 counties in the ARC-designated are eligible
- Review based primarily on credit score
- Five-person internal review committee
- Turnaround usually in less than one week
For more information, visit www.soarfarmloans.org.