MACED Receives $750,000 for Lending to Small Businesses in Appalachian Kentucky
Berea, Ky — The Mountain Association for Community Economic Development (MACED) is poised to loan $750,000 to small businesses throughout eastern Kentucky since receiving a low-interest loan from the Small Business Administration (SBA). The funds will be used as capital for loans under $35,000 to support the development of small businesses which contribute to the employment opportunities and economic vitality of the region.
MACED strengthens the entrepreneurial capacity in eastern Kentucky through the creative use of loan capital and provision of technical assistance. MACED makes loans as small as $1,000 and as large as $300,000. This work aims to grow businesses that contribute to low-income people’s financial assets and the development of vibrant local communities.
One way that MACED does this is through microloans (under $35,000). Although MACED has been engaged in community development lending for almost thirty years, the microloan program was launched in January 2004 due to an expressed need in the eastern Kentucky region. Since that time, MACED has made 56 microloans for a total of just under $1 million. The SBA made an initial investment of $250,000 for loan capital which was quickly lent out. MACED expects to make over 60 microloans with the new $750,000.
"There is a large demand for microloans in the region. We are pleased to have the financial support of the SBA. It will allow us to assist the small businesses of Appalachian Kentucky thrive and grow, creating employment opportunities in distressed communities,” said Jonathan Harrison, MACED’s Business Development Director.
To apply for a loan or for more information on MACED and its business development program, visit www.maced.org or call 859-986-2373.