Additional $2.2 million available in small business COVID-19 assistance
Louisville Metro Government (LMG) has entered into an agreement with Park Community Credit Union that will administer a $2.2 million fund to assist small businesses, which have been financially impacted by the COVID-19 pandemic. The funds have been made available through federal Community Development Block Grant dollars.
“COVID-19 was not in anyone’s business plan, especially our small businesses, which are so vital to our city’s culture and economic momentum,” said Mayor Greg Fischer. “This fund can help local businesses we all love to sustain their operations as we continue to battle this virus. The fund was specifically designed with equity in mind, and I would like to thank Park Community Credit Union, a terrific community partner with experience working in disinvested neighborhoods, for joining us in distributing these federal dollars.”
Approximately 50% of total funds will be distributed as grants to small businesses located in and/or predominantly serving west Louisville, Smoketown and Shelby Park. The remaining half will be distributed as loans to any small business located in Louisville. Minority-owned and women-owned enterprises will be given a preference for loans and grants. Both the grants and loan products will be available to businesses that qualify on a first-come, first-served basis. Loans will be available from $5,000 to $150,000 with a maximum term of 84 months and a fixed rate of .75% APR. Grants will be offered up to $50,000.
“Park Community is honored to be entrusted with these small business COVID-19 assistance funds from Louisville Metro Government,” said Jim Spradlin, President & CEO of Park Community Credit Union. “It has long been our mission to make fair and affordable financial services, products and education to all communities across Kentucky. Our goal is to provide monies in the form of grants and low-interest loans in response to the stress COVID-19 has taken on business owners, retailers and workforce. We want to invest in long-term impact for Louisville’s small business community.”
Small businesses, for the purposes of this fund, are defined as businesses with less than 300 employees and less than $20 million average annual revenue. Funds must be used to sustain business operations (payroll, rent, utilities, etc.).
The application window will open on Monday, March 29. To apply for a loan or grant, applicants should visit https://parkcommunity.com/smallbusiness/ to fill out an interest form. Grant and loan applicants should provide, among other things, a funding request and how the funds will be spent; supporting financial documents; and a summary of the applicant’s business and how COVID-19 has affected operations and staffing. Grant applicants should provide a letter of reference from a community member.
In addition to this $2.2 million fund, LMG has administered nearly $30 million in loans and grants to 894 small businesses for COVID-19 relief and assistance. More information can be found here: https://louisvilleky.gov/government/louisville-forward/covid-19-relief-….
Other small business COVID-19 resources can be found here: https://louisvilleky.gov/government/louisville-forward/small-business-r….