KHIC announces $1 million grant for business incubator
Thursday October 23, 2008
More than 120 jobs, $6 million in private investment projected in 5 years; Project to be built to LEED environmental standards
LONDON - Kentucky Highlands Investment Corporation announced today that it has received a $1,080,000 grant from the federal Economic Development Administration to help fund a business incubator in London.
"The project will provide support for new and small businesses to grow and prosper in Southern Kentucky, which will build a more entrepreneurial economy, increase jobs and attract private investment," said KHIC President & CEO Jerry Rickett.
The Kentucky Highlands Business Accelerator, which will be built on a one-acre site adjacent to KHIC's offices, will include 9,600 square feet of product development, office and laboratory space for area entrepreneurs.
KHIC projects the incubator will assist 16 businesses, help create 127 new jobs and generate $6 million in private investment during the first five years.
The incubator, which should be in operation in late summer 2009, will assist entrepreneurs of startup companies by offering programs and training to help them execute their business opportunities. It will help companies move through the business development process toward self-sustainability while building a more entrepreneurial community in the region. The development of a company typically will take three years, although tenants may have an option to extend to a fourth year.
"Communities that work together to create dynamic regional economies that foster innovation and competitiveness are the key to America's continued success as the leader of the 21st century global economy," said Patty Sheetz, director of Legislative & Intergovernmental Affairs for the Economic Development Administration.
"The Kentucky Highlands business incubator will be a catalyst for growth in the region and will be one of the first new energy efficient business incubator designs in the region that will be built to be certified by the U.S. Green Building Council's Leadership in Energy and Environmental Design building rating system."
Other funding for the new incubator includes a $300,000 grant from the Appalachian Regional Commission, which comes through the Governor's Department for Local Government, as well as a minimum investment of $450,000 from KHIC to complete the financial package.
"This financial crisis is a call for leadership, and once again, Kentucky Highlands is answering that call," Congressman Hal Rogers said. "The business accelerator is a bold initiative to connect the ingenuity of our region with the technical know-how and expertise of entrepreneurial leaders. We needn't wait for Wall Street to get its act together. We can succeed by working together, putting ideas into action and creating a culture of innovation in the hills and hollers of Kentucky. I'm proud to be a part of this initiative and applaud EDA for its continued leadership and dedication to rural America."
LEED standards
The proposed facility will be constructed to the Leadership in Energy and Environmental Design (LEED) Silver Standard. Environmentally friendly features will include a geo-thermal HVAC system, structural insulated panels, passive solar design, insulated concrete form walls, continuous slab concrete floors on both levels, double-hung transom windows, energy efficient metal roofing and numerous other features. The Kentucky Highlands Business Accelerator building will one of the first, if not the first, LEED certified buildings in the region.
Focused on entrepreneurism
This latest project is part of KHIC's overall strategy for fostering homegrown entrepreneurism. It currently has a small business incubator at its office that can house four companies. Business owners receive coaching and mentoring from experienced entrepreneurs, have access to advisers during the development process, participate in a formal entrepreneur management development training program, and have access to capital if their businesses meet certain milestones.
Two of the businesses in the current incubator have graduated and employ more than 25 people in the area. In addition, entrepreneurial training sessions have drawn more than 225 people over the last 18 months.
Kentucky Highlands Investment Corporation, founded in 1968 to stimulate economic growth in nine counties in Southern and Eastern Kentucky, now serves 22 counties in the region and has created more than 10,000 jobs. Visit www.khic.org for more information.