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Low Interest Loans

The low interest loan program is available for any volunteer fire department that meets the training requirements and is in good standing to receive state aid as per KRS 95A. The department must have received state aid for the past three consecutive years, and cannot obtain a loan from a conventional financial institution at the rate of 3% per annum. Volunteer fire departments can borrow up to seventy five thousand dollars ($75,000) or seventy five percent (75%) of the total cost of the project whichever is less. The fire department must be able to verify the availability of un-obligated funds in the amount of twenty five percent (25%) of the total cost.

Loans can be requested for:

  • Apparatus
    • CANNOT be more than 20 years old
    • term of the loan PLUS age of the apparatus cannot be more than 25 years
  • Communications Equipment
  • Accessory Equipment
  • Protective Equipment
  • Construction of new facilities or modernization of existing facilities
  • Repair or rehabilitation of apparatus

Loans cannot be used for:

  • Investment purposes
  • Acquisition of existing facilities
  • Operating expenses
  • To reduce debt or other obligation incurred prior to Loan Commitment letter
  • Payment of fees for designing or planning of facilities or preparation of application

The interest rate for a Fire Commission low interest loan is three percent (3%). The fire department must agree to maintain state aid qualifications and obligate state aid as payment throughout duration of the loan. All equipment purchased must meet current N.F.P.A standards at the time it was manufactured.

Apparatus purchase or rehabilitated apparatus or facilities or additions to facilities financed by this loan program shall be titled in the name of the volunteer fire department or the name of the political subdivision with the Fire Commission listed as a lien holder of the property.

Loans will be granted in order of need and availability of funds for each qualifying volunteer fire department. If interested in applying please fill out and submit the appropriate forms and return to:

Kentucky Fire Commission
Attn: Loan Administrator
118 James Court
Lexington, KY 40505

Repayment Schedule


$5,000.00 to $10,000.00 3 year term
$10,001.00 to $25,000.00 5 year term
$25,001.00 to $35,000.00 7 year term
$35,001.00 to $45,000.00 8 year term
$45,001.00 to $55,000.00 9 year term
$55,001.00 to $65,000.00 11 year term
$65,001.00 to $75,000.00 12 year term

Application deadlines

In order for your loan application to be submitted to the loan committee for review at the next Fire Commission meeting please submit all required documents on or before the posted deadlines:

  • March 23, 2020
  • May 18, 2020
  • July 13, 2020
  • Sept. 21, 2020
  • Nov. 23, 2020



Please use the corresponding checklist to ensure that all required documents are gathered for the application process.