Governor's Office for Local Development
Big Sandy Regional Project Awarded CEGG Funding
Governor Ernie Fletcher and the Governor’s Office for Local Development (GOLD) today announced that the Big Sandy Regional Industrial Development Authority will receive $250,000 in funding from the Community Economic Growth Grant (CEGG).
The fund, which was established during the 2005 General Assembly as HB 267, provides nearly $10 million in grant funds to be allocated during the 2005-2006 biennium.
“The Community Economic Growth Grant exemplifies what is possible when the Executive Branch and the Legislature work in a bi-partisan manner,” said Governor Ernie Fletcher. “The infusion of these funds will result in over $99 million in successful projects across the Commonwealth.”
The Big Sandy Regional Industrial Development Authority, in partnership with Southeast Kentucky Economic Development (SKED), is requesting funds to be used as matching funds by SKED for a $750,000 grant from USDA Intermediary Re-lending Program. The total amount of $1,000,000 will be used to re-capitalize SKED’s Economic Development Loan Fund. The loan fund will provide direct loans to new and expanding businesses for capital investment in Southeast Kentucky.
The Economic Development Loan Fund strengthens and promotes business development and the creation of job opportunities by providing gap financing and reducing credit risks which attracts investments by other public and private sector lenders.
Based on SKED’s current portfolio, it is estimated that the receipt of the requested funds will result in the provision of ten additional loans that will be matched with $10,000,000 in private investment and create 250 jobs.
The following counties are served by SKED: Adair, Bath, Bell, Breathitt, Casey, Clay, Clinton, Cumberland, Estill, Floyd, Garrard, Green, Harlan, Jackson, Jessamine, Johnson, Knott, Knox, Laurel, Lawrence, Lee, Leslie, Letcher, Lincoln, McCreary, Magoffin, Marin, Metcalfe, Menifee, Monroe, Morgan, Owsley, Perry, Pike, Pulaski, Rockcastle, Rowan, Russell, Taylor, Wayne, Whitley and Wolfe.
CEGG is administered by the Governor’s Office for Local Development through the Kentucky Community Development Office (KCDO). The goal of the program is to provide flexible funding to support and encourage the economic growth and viability of communities within the Commonwealth.
Counties, cities, special districts and school districts were eligible to apply for this year’s funding. Monies can be utilized for construction, acquisition of property, equipment purchase, industrial site development, infrastructure, and capital improvement projects.