Additional $ 2.2 Million Available to Help Small Businesses COVID-19

LOUISVILLE, Ky. – The Louisville Metropolitan Government (LMG) has reached an agreement with Park Community Credit Union that will administer a $ 2.2 million fund to help small businesses, which have been financially affected by the COVID-19 pandemic. The funds were made available through federal grants for community development.

“COVID-19 was not in anyone’s business plan, especially our small businesses, which are so essential to our city’s culture and economic life,” said Mayor Greg Fischer. “This fund can help the local businesses we all love to keep operations as we continue to fight this virus. The fund was specially designed with fairness in mind, and I want to thank Park Community Credit Union, a great community partner with experience working in disinvested neighborhoods, for joining us in distributing these federal dollars.

Approximately 50% of the total funds will be distributed as grants to small businesses located in and / or primarily serving West Louisville, Smoketown and Shelby Park. The remaining half will be distributed in the form of loans to any small business located in Louisville. Minority and female-owned businesses will be given preference for loans and grants. Grants and loan products will be offered to eligible businesses on a first come, first served basis. The loans will be available from $ 5,000 to $ 150,000 with a maximum term of 84 months and a fixed rate of 0.75% APR. Grants will be offered up to $ 50,000.

“Park Community is honored to be awarded this COVID-19 Small Business Assistance Fund from the Louisville Metropolitan Government,” said Jim Spradlin, President and CEO of Park Community Credit Union. “Our long-standing mission has been to provide fair and affordable financial services, products and education to all communities in Kentucky. Our goal is to provide money in the form of grants and low-interest loans in response to the stress COVID-19 has placed on business owners, retailers and the workforce. We want to invest in long term impact for the Louisville small business community.

Small businesses, for the purposes of this fund, are defined as businesses with fewer than 300 employees and an average annual income of less than $ 20 million. The funds should be used to support business operations (salary, 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/ complete an interest form. Applicants for grants and loans must provide, among other things, a request for funding and how the funds will be spent; financial supporting documents; and a summary of the candidate’s business and how COVID-19 has affected operations and staffing. Grant applicants must provide a letter of reference from a community member.

In addition to this $ 2.2 million fund, LMG administered nearly $ 30 million in loans and grants to 894 small businesses for COVID-19 aid and assistance. More information can be found here: https://louisvilleky.gov/government/louisville-forward/covid-19-relief-grants-and-loans.

Other COVID-19 resources for small businesses can be found here: https://louisvilleky.gov/government/louisville-forward/small-business-resources-covid-19.

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