Access to capital is vital to the start, growth and sustainability of small business. The good news is there are many options available for Kentucky’s small businesses.
Financing typically falls into two categories – debt or equity. Debt financing can range from conventional sources like banks, credit unions, micro-lenders and government backed guarantees to unconventional lending platforms, such as peer-to-peer lending and crowd-funding.
Equity options range from founder’s capital, family and friends, to private equity placement such as angel investors and venture capital. The Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs are examples of government sponsored equity that take the form of a grant.
Kentucky offers a variety of programs to encourage new venture formation, business expansion and job creation. Supporting entrepreneurs helps the Commonwealth achieve long-term economic growth and employment for its citizens.