LOUISVILLE, Ky. — A new $2.8 million low-interest revolving loan fund is available for small businesses impacted by the pandemic in Louisville.
What You Need To Know
- Louisville Forward launches $2.8 million loan fund for small businesses
- Loan created using grant funds awarded by EDA
- Louisville Forward's Small Business Team to administer funds through METCO program
The Small Business COVID-19 Relief Loan, launched by Louisville Forward, was created using grant funds recently awarded by the U.S. Department of Commerce's Economic Development Administration (EDA).
“This new loan program will give small businesses another option for help as they continue to face the deep impacts from the COVID-19 pandemic,” said Mayor Greg Fischer. “Thank you to the EDA for the grant funding to make this possible.”
Louisville Forward's Small Business Team will administer the loan through its METCO program, which provides financial assistance to businesses through commercial loans. Louisville Forward, the city's economic and communtiy development arm, is one of six organizations in Kentucky to receive EDA grant funds for the new revolving loan fund.
“Small businesses are invaluable pillars in our communities,” said Gov. Andy Beshear. “Our business owners have diligently followed guidelines and prioritized protecting their fellow Kentuckians. We can’t thank them enough for their help combatting COVID-19, and it is imperative we help them thoughtfully rebuild and stay economically resilient. Thank you to everyone who made this funding possible and for investing in Kentucky.”
As a result of the pandemic, overall revenue among Louisville small businesses has declined nearly 20 percent, according to Opportunity Insights, a non-partisan research and policy institute based at Harvard University. The new loan hopes to meet cash flow needs with a shortened application process and additional meetings of the METCO Board, the oversight body that approves all loans through the METCO program.
Small businesses can receive a 66-month loan of up to $50,000, with no payments and zero interest for the first six months and two percent interest starting in month seven.
Businesses that apply for the loan must be located in Louisville and provide most recent year of business tax returns, 2019 and 2020 profit and loss statements, and balance sheet for 2020. In addition, the business must be in good standing with the Louisville Metro Revenue Commission and Kentucky Secretary of State. No personal financial information will be required, and approved borrowers must agree to receive financial coaching within 90 days of closing and provide prrof of how they use the funds on a quarterly basis.