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Are you looking for Kentucky’s best business loans & startup financing companies? For your small business in the Bluegrass State, many banks, credit unions, and unconventional lenders are offering different loan types. Did you know that 46,000+ small businesses emerged in 2022 in Kentucky? The entrepreneurial potential of this amazing region is simply never-ending!

Understand the unique features and benefits of different loan types to empower your business. That’s how you choose the best lender for your business. Also, look into no-credit equipment financing options if you can’t get a business loan via traditional means.

Consider these 10 business loans & startup financing options in Kentucky to get started. Check our reviews of these lenders to decide which one’s the best option for you:

1. Swoop Funding

Swoop Funding is every Kentucky-based small company’s top startup financing option. It will offer entrepreneurs a range of funding solutions to meet their needs. You can access many loan types, including traditional term loans and innovative financing options with a simplified funding process. At Swoop Funding, you can get $5k to $500k as a small business. Moreover, you have to have a credit score of 600+ with the company’s annual revenue being $50k (at least). Even if it’s been 6 months since you started this business, Swoop will consider your loan application!

2. Stock Yards Bank & Trust

This particular lender excels at providing Kentucky-based startups with much-needed financial support. The interest rate here is 4.43% with $374 being the average loan amount. It supports not only businesses based in Kentucky but also the ones based in the neighboring Ohio. It has been operational since the last century. So, you should get in touch with Stock Yards to fund your unique business idea right away.

3. Peoples Bank

Here’s another helpful lender that supports hundreds of local businesses financially. So, you can open a line of credit, take out commercial real estate loans, or apply for SBA loans to keep your business in the race. Moreover, you can get a commercial/standby letter of credit from this generous loan provider as well.

4. Community Trust Bank

With an interest rate of 4.59%, you can apply for an average loan amount of $245,000. This bank was established in the early 20th century in Kentucky. It serves business owners not only in the Bluegrass State but in Tennessee as well. Aside from the normally available 504 and 7(a) loans, you can apply for low-doc loans (that don’t require much scrutiny and have very lenient conditions); these low-doc loans go up to $150,000. That’s how CTB helps local startups get the best deals on lending options to run their business operations.

5. Mountain Association

If your startup is located in Eastern Kentucky, then this loan provider will come to your rescue. It will provide you with various loan types so you can stay funded throughout the duration of your business’s life cycle. This is what we got from its website: “Loans range from $1,000 to over $1 million. Interest rates typically range from 5% to 7.75% with flexible terms. For loans specifically for solar installations, we offer 4% fixed interest with 20-year terms.”

6. Republic Bank & Trust Company

This particular bank was founded in 1977 in Kentucky’s Shelby County. Since then, it’s helped countless local businesses get ample loans to stay thriving in this economy. The average rate of interest is very low (4.11%) but the average payout amount is high ($529k). Also, Republic Bank gives you an easier lending option; this fixed-rate unsecured loan can be used for any purpose with up to $25,000 available in funding. So, you should get in touch with this bank and ask about these lending opportunities in detail.

7. Field & Main Bank

We’ve mentioned this particular lender before. In the blog about Indiana’s best business loans, we discussed Field & Main as a possible option for startup financing. So, you can apply for real estate loans here, open a commercial line of credit, take out working capital loans, or simply get equipment financing to make sure that your business has the necessary machines to get stuff done.

8. Paducah Bank

This bank is yet another credible loan provider for Kentucky-based businesses. It supports both new startups and established companies in the Bluegrass State. So, you can apply for loans up to $5.5 million via SBA. Paducah Bank also offers specialized loans for importers & exporters. It is prudent to get in touch with the customer service department to better understand what this bank is offering in terms of lending options.

9. South Central Bank

Another option that you can consider to get ample funding in Kentucky is to get in touch with the South Central Bank. It offers you loans in the name of 7(a), 504, and express with loan amounts ranging from $500k to $5 million while terms are 10 to 25 years (depending on whether it’s a real estate loan or not.

10. Dealstruck

We have mentioned Dealstruck in a previous blog. This lender provides you with ample funding if you’re a small business located in Kentucky. However, it has very strict requirements, such as the following:

• You must be in business for 12 months
• Your personal credit score has to be over 600
• Your average monthly revenue is $12.5k (on average)

If that’s true, you can get up to $500k in funding with terms of up to 48 months. Also, their rates of interest start at a whopping 9.99%!

Kentucky Government Resources

Check out these government resources about business grants/funding and startup financing options in Kentucky:

• Rural Business Development Grants in Kentucky
• Campbell County Business Guide
• Access to Capital in Kentucky
• Financing – Kentucky Business One Stop
• Small Business Resource Inquiry in Louisville

Top Cities in Kentucky for Business Loans

Curious to know which cities or census-designated places (CDPs) in Kentucky are the best for business loans & startup financing? If you live in any of these 30 cities, then you can easily access SBA loans or other nontraditional financing means to embark on your entrepreneurial journey:

1. Louisville
2. Lexington
3. Bowling Green
4. Covington
5. Richmond
6. Owensboro
7. Florence
8. Nicholasville
9. Jeffersontown
10. Cold Spring
11. Henderson
12. Erlanger
13. Frankfort
14. Georgetown
15. Alexandria
16. Bardstown
17. Newport
18. Ashland
19. Somerset
20. Hopkinsville
21. Madisonville
22. Elizabethtown
23. Danville
24. Mount Sterling
25. Maysville
26. Campbellsville
27. Burlington
28. Highland Heights
29. Richmond Hill
30. Union

Conclusion

Whether you’re a startup owner or founded a well-established business years ago, you have to choose the right financing partner and lender. That’s how you keep your business vessel afloat and key commercial operations running in Kentucky in this economy.

Now, choose a lender that offers you flexible loan terms and interest rates. Check their online reputation, customer service, interest rates, and other factors. If something needs to be clarified, get in touch with Sophisticated Investor to understand how to get your entrepreneurial dreams funded quickly. That’s how you can take your business to new heights of success.