LOUISVILLE, Ky. — Louisville Metro Government announced an agreement with nonprofit LHOME to administer a $2.2 million loan fund for small businesses in Smoketown, Shelby Park and nine west Louisville neighborhoods impacted by COVID-19.


What You Need To Know

  • Louisville Metro Government announced an agreement with nonprofit LHOME to administer a $2.2 million loan fund for small businesses

  • The funds come from federal Community Development Block Grant (CDBG) dollars for LHOME's Back to Business initiative

  • LHOME, the Louisville Urban League and A Path Forward designed the program together

  • The fund defines small businesses as businesses with fewer than 300 employees and less than $20 million in average annual revenue

The funds come from federal Community Development Block Grant (CDBG) dollars for LHOME's Back to Business initiative. According to a release from the mayor's office, the program offers free business coaching and affordable loans, with priority given to businesses owned by minorities, women and those with disabilities.

“Early last year, Louisville Metro committed to supporting small businesses struggling through the devastating impacts of the COVID-19 pandemic and increasing our intentionality around investing in places and people who lack access to capital and other resources due to the impacts of disinvestment and discriminatory practices like redlining. We are happy to work with LHOME, a great community partner, as they help businesses return to their pre-pandemic profitability and set them on a path of growth,” said Mayor Greg Fischer.

The mayor's office described how the program will work. Businesses participating in the initiative will start by working with a small business coach to determine business needs and eligibility. The LHOME coach will work with businesses to collect or produce all necessary information and paperwork to apply for a loan. Eligible businesses could receive a maximum loan of $150,000, up to $50,000 of which may be forgivable. The amount of the loan and terms will depend on an individual business’ needs.

“I am very excited LHOME is launching the Back to Business loan program. The pandemic has stressed and stretched small businesses,” said Adam Hall, LHOME’s board chair. “This loan fund will contribute to a thriving economic infrastructure in Louisville, getting vulnerable business back to their pre-pandemic success.”

LHOME, the Louisville Urban League and A Path Forward designed the program together. 

The fund defines small businesses as businesses with fewer than 300 employees and less than $20 million in average annual revenue. Eligible applicants must: 

  • Have an established business that was operating before March 1, 2020;
  • Be the business owner or a majority partner;
  • Have a documented loss of income directly related to COVID-19 pandemic;
  • Demonstrate how this coaching and funding will help reestablish and/or grow the business;
  • Have a bank account; and
  • Be at least 18 years of age and have a state-issued ID.

Funds must be used for working capital (wages, mortgage/rent, supplies, utilities, etc.), inventory, vendor-installed equipment, and other equipment (computers, kitchen equipment/appliances, etc.)

Businesses can fill out the contact form and answer eligibility questions online.