I am excited to inform you that Mayor Greg Fischer announced today the creation of the Small Business Community Loan Program. The loan program was developed in partnership with Louisville Metro Government, Greater Louisville Inc., LHOME, Render Capital, and Lenderfit. This loan program is a $900,000 fund that will provide zero-interest loans to small businesses impacted by COVID-19, with no payments for 12 months. It is vitally important that as a community we come together to strengthen this fund with our collective financial resources. This critical resource comes at a time when businesses are beginning to feel the strain of the effect of the pandemic, and will provide much needed relief to those who are not able to fulfil their current obligations.
Loans will be administered by local Community Development Financial Institution (CDFI) LHOME, and managed through Lenderfit. GLI is pleased to participate in this effort because it is imperative that we support small businesses during this difficult time. We are encouraging the business community to support this initiative through investment, coaching, and participation in the loan review committee.
The purpose of the loan is to keep small businesses viable through the pandemic and to serve as a low-cost option in addition to the U.S. Small Business Administration loans or other relief programs.
Starting Monday, April 6, Community Development Financial Institution LHOME will begin accepting applications from small businesses for zero-interest loans of up to $25,000 through the Small Business Continuity Loan Program. Businesses will not be required to make any payments on the loan principal until the end of the 12-month loan term.
For small businesses to be eligible to receive a loan they must meet the following criteria:
- Must have 10 or fewer full-time employees.
- Business must show emergencies connected with the COVID-19 economic crisis.
- Business must be located in Jefferson County.
- Business must be in good standing with Louisville Metro Revenue Commission as of March 1, 2020.
- Must agree to receive financial coaching and apply for other assistance within 90 days of loan closing.
The Small Business Continuity Loan Program is still raising funds. You can donate to the program at www.lhomeky.org. Funding given by banks qualifies as Community Reinvestment Act contributions.
You can access additional details about this program here.