U.S. Department of Commerce Invests $6.7 Million in CARES Act Funding to Capitalize Revolving Loan Funds to Help Small Businesses in Kentucky Respond to Coronavirus
WASHINGTON – Today, U.S. Secretary of Commerce Wilbur Ross announced that the Department’s Economic Development Administration (EDA) is awarding $6.7 million in CARES Act Recovery Assistance grants to capitalize and administer Revolving Loan Funds (RLFs) that will provide critical gap financing to small businesses and entrepreneurs in Kentucky that have been adversely affected by the coronavirus pandemic.
“President Trump is working diligently every day to support our nation’s economy following the impacts of COVID-19 through the CARES Act,” said Secretary of Commerce Wilbur Ross. “These investments will provide small businesses in Kentucky with the necessary capital to rebound from the coronavirus pandemic and, in turn, create a stronger and more resilient state economy for the future.”
“These investments come at a crucial time to help Kentucky’s and our nation’s economy come roaring back and provide hard-working Americans with new opportunities,” said Dana Gartzke, Performing the Delegated Duties of the Assistant Secretary of Commerce for Economic Development. “Small businesses are the lifeblood of our communities, and EDA is pleased to invest these CARES Act funds to help Kentucky businesses with their capital needs as they respond to coronavirus.”
“Kentucky’s small business owners contribute so much to our commonwealth and have gone above and beyond to keep their customers safe during this unprecedented time,” said Governor Andy Beshear. “We are grateful that EDA is investing in these businesses and their recovery through CARES Act funding, just like small businesses invest in our communities every day.”
U.S. Senate Majority Leader Mitch McConnell introduced the Coronavirus Aid, Relief and Economic Security (CARES) Act—the largest economic rescue package in American history—and led it to passage.
“The aid announced today to small businesses and entrepreneurs is an important aspect of my CARES Act that’s bringing urgent relief to communities across the Commonwealth. I’m proud my legislation is having a $12 billion impact in Kentucky supporting small businesses, workers, and job creators,” said Senator Mitch McConnell. “As Senate Majority Leader, I’m continuing to work with President Trump and his Administration to mobilize the resources Kentucky needs to beat this virus.”
“The COVID-19 crisis made it essential for our small businesses, who are the backbone of our economy, to receive much-needed relief to offset the costs of the government-induced shutdown,” said Congressman James Comer (KY-01). “This funding will provide a lifeline to our job creators as we continue to restart the economy and get our citizens back to work. I want to thank the Trump Administration for making these investments in small businesses in Hopkinsville and Russell Springs.”
“Small businesses are the backbone of our economy, and have been crucial as we continue to reopen in Kentucky,” said Congressman Brett Guthrie (KY-02). “I want to thank the EDA for awarding this CARES Act grant to the Barren River Area Development District in Bowling Green to help local small businesses recover and expand. When we created the CARES Act, it was to put resources directly into the hands of our local communities and businesses. I look forward to continuing to work with the administration to support Kentuckians.”
The EDA investments announced today are:
- Buffalo Trace Area Development District, Maysville, Kentucky, will receive a $2.1 million EDA CARES Act Recovery Assistance grant to stimulate economic growth and job creation by capitalizing and administering a RLF to service businesses in Bracken, Fleming, Lewis, Mason, and Robertson counties.
- The Lake Cumberland Area Development District, Russell Spring, Kentucky, will receive a $1.5 million EDA CARES Act Recovery Assistance grant to capitalize and administer a RLF that will provide loans to small businesses impacted by coronavirus to assist with their working capital needs. The District’s service area includes Adair, Casey, Clinton, Cumberland, Green, McCreary, Pulaski, Russell, Taylor, and Wayne counties.
- FIVCO Area Development District, Grayson, Kentucky, will receive a $1.3 million EDA CARES Act Recovery Assistance grant to finance start-up and expanding businesses by capitalizing and administering a RLF to service coronavirus impacted businesses in Boyd, Carter, Elliott, Greenup, and Lawrence counties.
- Gateway Area Development District, Morehead, Kentucky, will receive a $759,000 EDA CARES Act Recovery Assistance grant to assist businesses in bouncing back from coronavirus by completing COVID conversions for health and safety and becoming remote ready through technology upgrades by capitalizing and administering a RLF that will serve impacted businesses in Montgomery, Bath, Menifee, Morgan, and Rowan counties.
- Pennyrile Area Development District, Hopkinsville, Kentucky, will receive a $759,000 EDA CARES Act Recovery Assistance grant to capitalize and administer a RLF that will help coronavirus impacted businesses in Caldwell, Christian, Crittenden, Hopkins, Livingston, Lyon, Muhlenberg, Todd, and Trigg counties meet their short-term working capital needs.
- Barren River Area Development District, Bowling Green, Kentucky, will receive a $250,000 EDA CARES Act Recovery Assistance grant to capitalize and administer a RLF to assist coronavirus impacted small businesses and start-ups with expansions service in Allen, Barren, Butler, Edmonson, Hart, Logan, Simpson, Warren, Metcalfe, and Monroe counties.
These current EDA RLF grantees are some of the more than 850 existing, high-performing EDA RLF, Economic Development District, University Center, and Tribal grant recipients invited to apply for supplemental funding under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
The CARES Act, signed into law by President Donald J. Trump, provides EDA with $1.5 billion for economic development assistance programs to help communities prevent, prepare for, and respond to the coronavirus pandemic.
On May 7, Secretary Ross announced that EDA is accepting applications for CARES Act Recovery Assistance funding opportunities.
EDA CARES Act Recovery Assistance, which is being administered under the authority of the bureau’s flexible Economic Adjustment Assistance (EAA) (PDF) program, provides a wide-range of financial assistance to eligible communities and regions as they respond to and recover from the impacts of the coronavirus pandemic. For complete information, please visit our recently updated EDA CARES Act Recovery Assistance page.
About the U.S. Economic Development Administration (www.eda.gov)
The mission of the U.S. Economic Development Administration (EDA) is to lead the federal economic development agenda by promoting competitiveness and preparing the nation's regions for growth and success in the worldwide economy. An agency within the U.S. Department of Commerce, EDA makes investments in economically distressed communities in order to create jobs for U.S. workers, promote American innovation, and accelerate long-term sustainable economic growth.