Louisville City Wire

Louisville Metro Government approved more than $3.2 million in loans to 28 businesses through its Metropolitan Business Development Corporation (METCO) program in 2023, leveraging $12.3 million in private investment and creating dozens of new jobs in neighborhoods across the city.

“Each of these loans represent someone’s dream. Through Louisville Metro’s METCO program, the entrepreneurs and small business owners that make our city authentic are able to start and grow their dreams into successful businesses,” said Mayor Craig Greenberg.

In September, METCO also achieved a new milestone with the approval of its first Sharia-compliant loan. The board approved a Sharia-compliant modification option in June to expand access to its loan products for Muslim business owners and entrepreneurs who would otherwise be prohibited by their religious beliefs from accessing the city’s low-interest business loans. The modification charges a loan service fee in lieu of interest based on the amount of interest that METCO would anticipate earning over the life of the loan.

The METCO small business loan programs are administered by the Department of Economic Development. METCO offers small business and commercial property loans for new and expanding businesses in Louisville. Loans can be used for start-up and expansion costs, including equipment purchases, buildout, and working capital, as well as for commercial property improvements. The mission of the program is to provide low-interest loans to help entrepreneurs open and operate thriving businesses throughout the city, with an emphasis on providing loans to individuals struggling to access capital through traditional means.

“Manufacturing equipment is very expensive, and we needed to make our small business way more efficient,” said Danielle Wood, co-founder of Elixir Kombucha, which received $132,000 in loans through the METCO program. “Having that checked off the list for everything we needed to grow our own business was huge, and it also showed investors that we were worthy of receiving investment and capital.”

Loans through the METCO program also have allowed businesses to pivot and find success during financial hardship. While still struggling to recover from the COVID-19 pandemic, Alpha Cheer Gymnastics owner Deshawn Bell received a $20,000 Midi Loan in November 2021 that allowed him to move into a new space at 1722 Brick Kiln Lane where he now teaches about 200 children.

“It really saved my program,” Bell said. “Without that loan, I would have been closed. I am very, very fortunate to have got the loan, so I am very, very grateful still to be open.”

Eight businesses obtained loans in fourth quarter of 2023

The METCO Board approved $650,000 in small business loans during the fourth quarter of 2023, leveraging about $850,000 in investment in Louisville:

October

• Motion in the Ocean LLC, a bar and restaurant opening at 111 N. Wenzel St., was approved for a $200,000 Small & Disadvantaged Gap Loan for buildout and working capital.

November

• J Cortez FIT LLC, a home-based wellness business specializing in sea moss-based products, was approved for a $60,000 Small & Disadvantaged Gap Loan to purchase a van, refrigerators, and working capital.
• CBI Logistics LLC dba Manns Moving was approved for a $40,000 Midi Loan for the purchase of equipment, software and working capital.
• ISH Hospitality LLC dba Early Bird Bagel Shop, located at 1039 Ash St., was approved for a $50,000 Midi Loan for the purchase of equipment and buildout of space.
• Real estate holding company, Butcher Block Properties LLC, was approved for two loans, a $100,000 Façade Loan and a $35,000 Accessibility Loan, to make exterior façade improvements and add a ramp at 111 Wenzel St.

December

• Playground Abode LLC, an indoor play space for young children opening at 9904 Linn Station, was approved for a $100,000 Gap Loan for equipment and working capital.
• Unique Essentials, located at 1921 W. Broadway, was approved for a $25,000 Business Accelerator Loan for supplies and working capital to start the production and sale of hair products.
• Lara Donnelly LLC, a mobile service offering physical recovery treatments for athletes, was approved a $45,000 Midi loan for equipment and working capital.

METCO loan applications are accepted year-round, and the METCO board meets monthly to review, discuss and vote on applications for small business loans available through Louisville Metro Government. The METCO board meets virtually on the third Thursday of the month at 9 a.m. The 2024 meetings will be held on January 18, February 15, March 21, April 18, May 16, June 20, July 18, August 15, September 19, October 17, November 21, and December 19.

METCO works with businesses to determine loan eligibility. Those interested may email metco@louisvilleky.gov or visit https://louisvilleky.gov/government/economic-development/metco-loan-pro….

Original source can be found here.