The Department of Economic Development is now accepting applications for a new low-interest loan program, the Small Business COVID-19 Relief Loan Program. The $2.8 million loan fund is designed to assist small businesses impacted by COVID-19 and aims to meet businesses’ immediate cash flow needs quickly through a shortened application process and additional meetings of the METCO Board, the oversight body that will approve the loans.
The Small Business COVID-19 Relief Loan Program was created using grant funds recently awarded by the U.S. Department of Commerce’s Economic Development Administration.
Through the new 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 2 percent interest starting in month seven. There will be no prepayment penalty for early payoff.
The loan funds must be used for expenses that will sustain the business and be directly related to the impact of COVID-19.
In order to qualify the business must:
- Be located in Louisville/Jefferson County, Kentucky
- Be in good standing with Louisville Metro Revenue Commission and Kentucky Secretary of State
- Show no more than $2.5 million annual revenue in previous year
- Demonstrate that there was negative impact due to COVID-19
Application will include:
- Most recent year of business tax returns
- 2019 and 2020 profit and loss statement
- Current balance sheet
- Clear narrative explaining loss of revenue due to the COVID-19 pandemic
If approved, the borrower must agree to receive financial coaching within 90 days of closing and will be required to report proof of fund usage on a quarterly basis for the life of the loan.
Eligibility to apply requires that you agree to the following statements:
- My business is located in Louisville/Jefferson County, Kentucky
- My business revenue does not exceed $2.5 million annually
Click here to complete the Small Business COVID-19 Relief Loan application.