Local loan programs
The Metropolitan Business Development Corporation (METCO) administers Louisville Metro Government’s small business and commercial property loans for new and expanding businesses in Jefferson County. Loans can be used for start-up and expansion costs, including equipment purchases, buildout, and working capital, as well as for commercial property improvements. Loan applications are evaluated on: business plan, financial feasibility, owner experience, and credit-worthiness. Collateral is required for all METCO loans except the Business Accelerator Loan.
Learn More: Download our METCO flyers below. For questions, inquiries or to request a pre-application meeting, email [email protected] or call (502) 574-4140.
The METCO board meets on the third Thursday of the month at 9 a.m. Meetings are currently being held virtually. The remaining meeting for 2022 will be held on September 15, October 20, and December 8.
Small Business Start Up & Expansion Loans
Midi Loan – Loans are $15,000 - $50,000 at a minimum interest rate of 5%, repayable over 5 years.
Business Accelerator Loan – For small businesses in low to moderate income neighborhoods without access to collateral or commercial lending. For businesses open less than 1 year, loans are $15,000 - $30,000. Businesses open more than 1 year may apply for up to $50,000. Loans are repayable over 7 years at an interest rate of 8%. No collateral required.
Project Gap Financing Loans – Provides project gap financing of up to 25% of project budget, or up to 50% for minority-owned or woman-owned businesses. Borrower must either have a primary lender in place, or have been declined by a commercial lender. Eligible expenses include: equipment, build out, furnishings/fixtures, supplies, inventory, and working capital. New construction is not eligible. Gap loans may not be used for purchasing buildings or land except for down payment assistance on commercial property. Loans are $25,000 - $200,000, at a minimum interest rate of 5%, repayable over 10 years.
Commercial Property Loans
Collateral will include the improved property; additional collateral may be required.
Façade Loan – Provides financing for exterior property improvements to revitalize neighborhood commercial corridors. Eligible expenses include storefronts, masonry repair, door and window replacements, siding, painting, carpentry, signage, and landscaping. (Roofs and sidewalks are not eligible.) Loans are $15,000 - $100,000, at an interest rate of 3%, repayable over 10 years.
Accessibility Loan – Provides financing to improve building accessibility and ADA-compliance. Eligible expenses include interior and exterior accessibility improvements. Loans are $5,000 - $15,000 at an interest rate of 3%, repayable over 4 years.
Commercial Renovation Loan – Provides financing for the renovation of a commercial property that is otherwise unsuitable for the operation of a business, or for commercial lease. Loans are $15,000 - $250,000 or more, at an interest rate of 3%, repayable over 10 years.
Go Green Loan – Provides financing for energy efficiency upgrades or businesses creating green products or services. Loans are $15,000 - $200,000 or more, at a minimum interest rate of 3%, repayable over 10 years.
Louisville Agribusiness Loan – Provides financing to businesses that process, distribute, or otherwise add value to food grown by Kentucky farmers. Loans are $15,000 - $250,000 at a minimum interest rate of 2.75%, repayable over 10 years.
Brownfield Cleanup Loan – Provides financing to prospective and existing property owners for the environmental cleanup costs of eligible brownfields so the property may be returned to productive use.
The Kentucky Collateral Support Program (KYCSP) (the “Program”) provides a pledged asset (cash collateral account) to an enrolled lender of up to twenty percent (20%) of their loan in order to enhance the collateral coverage of a small business borrower that is otherwise qualified but unable to meet the lender’s security requirements. The cash collateral account will then be pledged as collateral on behalf of the borrower on a transaction by transaction basis and located at the participating lending institution or at other designated insured depository financial institution in the name of the Kentucky Economic Development Finance Authority (the Authority)
Kentucky small businesses may qualify for a non-refundable tax credit of up to $25,000 on their state income tax return through the Kentucky Small Business Tax Credit (KSBTC) program. The program is available to most for-profit businesses with 50 or fewer full-time employees.