Created to help small businesses grow, the Kentucky Angel Investment Act Program is experiencing growth of its own.

The fourth year of the program administered by the Office of Entrepreneurship within the Cabinet for Economic Development kicked off Monday, and a cabinet representative said interest is strong from potential investors and small businesses.

“Quite a few applications started coming in immediately,” said Brandon Mattingly, communications specialist for the economic development cabinet. “There are plenty of companies looking for investors and plenty of investors looking for good companies.”

The angel investment program was created in 2014 to bring those two parties together, giving fledgling businesses a capital injection and potential investors a way to get tax credits while investing in those businesses.

Qualified investors can receive tax credits for up to 50 percent of their investments. For 2018, the program offers a total of up to $3 million in tax credits, available on a first-come, first-served basis. Individual investors are limited to $200,000 in credits annually.

Potential investors must apply to the Kentucky Economic Development Finance Authority in order to become a qualified investor and be eligible to make investments of at least $10,000.

Likewise, small businesses must apply to become qualified to participate in the program.

Qualified businesses must have fewer than 100 employees and have a net worth of $10 million or less. These businesses can seek investments for qualified activities, which are defined by the state as knowledge-based activities related to such areas as bioscience; environmental and energy technology; and information technology and communications.

A list of qualified small businesses on the economic development cabinet’s website lists Bowling Green’s 1020 Digital LLC and Studio Calico LLC, and 1020 Digital is listed as having received investments in 2015.

Jeff Hook, director of the Western Kentucky University Center for Research and Development, would like to see that list grow.

“I think it’s a great program,” Hook said. “It gives a strong incentive to invest in start-up companies.”

Last year, more than $8.2 million in investments were made statewide through the angel investment program.

Hook said his office will be providing information on the angel investment program in an effort to bring more of that money into this region. Information may also be found by visiting the economic development cabinet’s website at www.thinkkentucky.com/Entrepreneurship/KAITC.aspx