Kentucky small business statistics
Kentucky logged 64,042 business applications in 2025, up 18.3% from 2024 and 94.6% from the pre-pandemic 2019 baseline. Professional services added the most private-sector establishments since 2019. Health care and social assistance added the most private-sector jobs.
Business applications, employment, lending, tax, bankruptcy, and contracting records cover different parts of Kentucky's business economy.
At a glance
Kentucky logged 64,042 business applications in 2025, up 18.3% from 2024 and 94.6% from the pre-pandemic 2019 baseline.
Through May 2026, total applications were up 35.3% from the same months in 2025; high-propensity applications were up 14.6%.
Jefferson filed 15,979 applications in 2025, the largest county total in Kentucky. Madison led the high-volume counties after adjusting for population.
Professional services added the most private-sector establishments since 2019. Health care and social assistance added the most private-sector jobs.
SBA 7(a) and 504 approvals to Kentucky businesses reached $310.1M in FY2025 across 615 loans, led by accommodation and food services, health care and social assistance, construction, other services, and retail trade.
Business bankruptcy cases tied to Kentucky counties rose from 133 to 142 in the 12-month period ending March 31, 2026.
New business formation
Kentucky business applications reached 64,042 in 2025, up 18.3% from 2024. Through May 2026, applications were 35.3% higher than in the same months of 2025.
Why compare with 2019
2019 is the last full year before the pandemic. The shutdown period and the business churn that followed changed EIN filing patterns. High-propensity applications totaled 7,997 through May 2026, up 14.6% from Jan-May 2025. Projected business formations within eight quarters rose 32.1% over the same period.
Census BFS counts applications for employer identification numbers. Applications are early filings; confirmed operating-business counts arrive later.
Where applications are concentrated
Jefferson is the largest application market by raw volume. Among the high-volume counties shown below, Madison stands out most after adjusting for population.
Applications relative to population
Each rate divides 2025 Census BFS applications by the county’s Census Vintage 2025 resident population estimate. Jefferson still has the most total filings, while Madison has the highest application volume relative to resident population among these high-volume counties.
Census BFS counts EIN applications. The denominator is 2025 resident population, which adjusts the filing count for scale. Startup conversion requires a business-based denominator.
| County | 2025 applications | Change vs 2024 | Change vs 2019 |
|---|---|---|---|
| Jefferson | 15,979 | +19.3% | +92.9% |
| Fayette | 7,030 | +13.6% | +94.5% |
| Madison | 3,170 | +42.6% | +246.1% |
| Warren | 2,212 | +20.7% | +108.1% |
| Kenton | 1,826 | +9.1% | +72.9% |
| Boone | 1,663 | +11.3% | +69.0% |
| Hardin | 1,604 | +22.6% | +94.7% |
| Daviess | 1,147 | +9.3% | +101.2% |
Jobs, establishments, and wages
In 2024, Kentucky had 152,232 private-sector establishments and 1,693,939 private-sector jobs. The establishment count was 29.9% higher than in 2019, and employment was 5.4% higher.
Professional services led establishment growth.
Professional services added 8,632 establishments from 2019 to 2024. Health care and social assistance added 30,552 jobs over the same period.
BLS QCEW counts employer establishments and jobs, along with wages, payroll, and local industry structure.
| Industry | 2024 establishments | Change vs 2019 | 2024 jobs | Change vs 2019 |
|---|---|---|---|---|
| Health care and social assistance | 24,349 | +7,110 (+41.2%) | 283,710 | +30,552 (+12.1%) |
| Professional services | 21,964 | +8,632 (+64.7%) | 88,079 | +11,087 (+14.4%) |
| Construction | 11,918 | +2,401 (+25.2%) | 93,486 | +13,023 (+16.2%) |
| Other services | 10,598 | +194 (+1.9%) | 48,636 | +2,065 (+4.4%) |
| Accommodation and food services | 10,026 | +1,443 (+16.8%) | 179,109 | +1,346 (+0.8%) |
| Administrative services | 9,213 | +2,417 (+35.6%) | 114,946 | -4,129 (-3.5%) |
| Finance and insurance | 8,774 | +1,916 (+27.9%) | 72,638 | -332 (-0.5%) |
| Wholesale trade | 8,376 | -97 (-1.1%) | 80,982 | +5,096 (+6.7%) |
| Real estate and rental | 5,708 | +1,365 (+31.4%) | 22,254 | +1,668 (+8.1%) |
| Information | 4,124 | +2,200 (+114.3%) | 20,756 | -914 (-4.2%) |
SBA lending
SBA 7(a) and 504 approvals to Kentucky businesses totaled $310.1M in FY2025 across 615 loans. The SBA files report 6,680 jobs supported for those approvals.
Accommodation and food services drew the most SBA capital.
Accommodation and food services drew $76.7M in FY2025 SBA approvals. Health care and social assistance, construction, other services, and retail trade received the next-largest approval totals.
SBA fiscal year 2025 ran from Oct. 1, 2024, through Sept. 30, 2025. The published files were current as of April 28, 2026.
| Sector | FY2025 loans | FY2025 approvals | SBA jobs supported |
|---|---|---|---|
| Accommodation and food services | 80 | $76.7M | 1,332 |
| Health care and social assistance | 64 | $47.7M | 966 |
| Construction | 93 | $37.9M | 590 |
| Other services | 80 | $35.4M | 945 |
| Retail trade | 69 | $24.3M | 544 |
| Manufacturing | 35 | $19.4M | 506 |
| Wholesale trade | 19 | $14.0M | 316 |
| Professional services | 53 | $12.4M | 282 |
| Administrative services | 29 | $8.1M | 419 |
| Arts and entertainment | 23 | $7.5M | 155 |
| County | FY2025 loans | FY2025 approvals | SBA jobs supported |
|---|---|---|---|
| Jefferson | 171 | $89.4M | 1,904 |
| Fayette | 59 | $29.0M | 732 |
| Oldham | 25 | $21.4M | 233 |
| Kenton | 41 | $19.0M | 383 |
| Hardin | 14 | $15.0M | 177 |
| Daviess | 9 | $11.3M | 153 |
| Mccracken | 19 | $9.2M | 426 |
| Boone | 22 | $8.1M | 318 |
| Jessamine | 6 | $7.3M | 75 |
| Warren | 25 | $7.0M | 359 |
The unincorporated business economy
IRS SOI data show 316,839 Kentucky Schedules C and partnership returns/forms in Tax Year 2023. Those businesses reported $60.0B in gross receipts and $6.2B in the combined income/profit measure.
Sole proprietors account for most returns.
Kentucky had 275,853 nonfarm sole-proprietor Schedules C in Tax Year 2023, with $18.5B in gross receipts and $3.3B in net profit.
Partnerships reported more gross receipts.
Kentucky partnerships filed 40,986 Forms 1065 in Tax Year 2023 and reported $41.5B in gross receipts.
| County | Returns/forms | Gross receipts | Combined income/profit metric |
|---|---|---|---|
| Jefferson | 69,635 | $17.1B | $1.4B |
| Fayette | 29,247 | $7.4B | $862.5M |
| Warren | 11,791 | $2.1B | $105.3M |
| Kenton | 11,315 | $2.7B | $438.4M |
| Boone | 9,668 | $1.5B | $189.0M |
| Madison | 6,484 | $1.4B | $55.8M |
| Daviess | 6,481 | $1.2B | $109.4M |
| Hardin | 6,317 | $989.9M | $128.4M |
| Oldham | 6,000 | $1.1B | $132.4M |
| Campbell | 5,982 | $684.5M | $66.7M |
Business stress signals
Business bankruptcy cases tied to Kentucky counties rose from 133 to 142 in the 12 months ending March 31, 2026. Chapter 11 accounted for 36 cases.
Why county totals can jump
Jefferson had the largest business-bankruptcy count in the latest F-5A table. Related business cases filed in the same venue can create a sudden change in one county’s total.
Definition: U.S. Courts classifies debt as business when the debtor is a corporation or partnership, or when business-related debt predominates.
| County | Business cases, 12 months ending Mar. 31, 2026 | Change vs prior 12 months | Chapter 11 cases | All bankruptcy cases |
|---|---|---|---|---|
| Jefferson | 31 | -1 | 5 | 2,284 |
| Pike | 13 | +11 | 11 | 224 |
| Fayette | 10 | -1 | 1 | 625 |
| Boone | 9 | +2 | 1 | 342 |
| Warren | 8 | -1 | 2 | 388 |
| Barren | 4 | +3 | 0 | 83 |
| Kenton | 4 | -3 | 1 | 407 |
| Madison | 4 | +3 | 1 | 297 |
| Bullitt | 4 | -3 | 1 | 217 |
| Muhlenberg | 3 | +2 | 2 | 100 |
National credit backdrop
The 2026 Fed Small Business Credit Survey appendix reported that 94% of U.S. employer firms faced a financial challenge in 2025, 38% applied for financing, and 52% of applicants were fully approved.
Federal contract demand
USAspending reports $9.8B in FY2025 federal procurement obligations to recipients located in Kentucky. USAspending assigns these obligations to the recipient’s state and includes award type codes A, B, C, and D.
| NAICS | Federal procurement category | FY2025 obligations |
|---|---|---|
| 524114 | Direct Health and Medical Insurance Carriers | $6.5B |
| 561990 | All Other Support Services | $838.6M |
| 562211 | Hazardous Waste Treatment and Disposal | $289.5M |
| 492110 | Couriers and Express Delivery Services | $190.3M |
| 611519 | Other Technical and Trade Schools | $185.7M |
| 236220 | Commercial and Institutional Building Construction | $165.8M |
| 488190 | Other Support Activities for Air Transportation | $161.1M |
| 331420 | Copper Rolling, Drawing, Extruding, and Alloying | $148.7M |
| 541519 | Other Computer Related Services | $120.9M |
| 623990 | Other Residential Care Facilities | $90.8M |
How the numbers fit together
Kentucky's business applications rose 18.3% in 2025. The employer base has expanded since 2019, with establishments up 29.9% and employment up 5.4%.
Sources and definitions
Each dataset updates on its own schedule. Annual figures use the latest complete year, and partial-year comparisons are labeled beside the relevant number.
- Census BFS monthly CSV
Updated June 10, 2026, 14:00 GMT - Census BFS county workbook
Updated June 10, 2026, 14:22 GMT - Census county population estimates
Vintage 2025 county resident population estimates - BLS QCEW annual area files
2019 and 2024 annual API files - SBA 7(a)/504 FOIA package
Updated April 28, 2026, 14:42 GMT - IRS SOI Tax Year 2023 unincorporated tables
Tax Year 2023 county combined, sole proprietor state, and partnership state tables - U.S. Courts F-5A bankruptcy XLSX
12 months ending March 31, 2026 - Fed SBCS Main Street Metrics appendix
Last updated March 23, 2026 - USAspending API
FY2025 procurement obligations
Alex Morgan turns Census, BLS, SBA, IRS, court, Federal Reserve, and USAspending records into state-by-state business comparisons.