Small business grant program provides much-needed aid to local businesses

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Small business grant program provides much-needed aid to local businesses

Grant program has assisted nearly 350 small businesses since July 1

Louisville, KY (August 21, 2020) – Since its launch on July 1, Louisville Metro Government’s Small Business COVID-19 Relief Grant Program has awarded more than $12.7 million in grants to nearly 350 small businesses throughout the city.

“I have heard from many business owners about the struggles they are facing as a result of the pandemic and economic downturn, which is out of their control. Our small businesses are the heartbeat of Louisville’s economy – providing jobs and tax revenue that helps pay for city services – and of course, it’s our small businesses that shape the unique character of our city,” said Mayor Greg Fischer. “That’s why it was important to the city to support our small businesses as we weather these unprecedented times together.”

Because of the pandemic, overall revenue among small businesses in Louisville have declined nearly 20 percent, according to Opportunity Insights, a non-partisan research and policy institute based at Harvard University. The Small Business COVID-19 Relief Grant Program, funded with more $21 million in federal CARES dollars, is designed to help prevent business closures caused by the COVID-19 pandemic and to preserve the hundreds of businesses that make Louisville unique.

Of the grant dollars allocated to date, 21.6 percent has gone to minority-owned businesses, and 36.6 percent has been awarded to women-owned businesses. The city also has committed to spending half of the total fund in low-to-moderate income census tracts.

About 800 applications have been submitted by small businesses, and businesses have requested grant amounts ranging from $1,500 to the maximum of $50,000.

Louisville Forward’s Economic Development team, which is administering the program, continues to work with businesses that have applied to guide them through the process. Once the applicants have provided all the necessary information, their funding requests are reviewed and voted on by an external six-person review committee.

“The top priority of the review committee is to ensure that we can help as many businesses in need as possible and that the businesses assisted are representative of Louisville’s diverse economy,” said Jackie Pennington, a retired banker and member of the review committee. “We want to make sure all small businesses have an opportunity to apply for a grant through the Small Business COVID-19 Relief Grant Program.”

Businesses can use the funds to cover payroll, utilities, lease or mortgage payments, and fixed costs, such as interest on debt service and business insurance. Business without existing online platforms may also use grant dollars to support the implementation of new technology to allow for online sales.

For small businesses to be eligible to receive a grant through the Small Business COVID-19 Relief Grant Program, they must meet the following criteria:

• Had 20 employees or fewer as of March 16, 2020, except for non-retail businesses. Non-retail businesses must have had 50 employees or fewer and remained closed or had their operations severely restricted under state executive order dated March 25, 2020.
• Been negatively impacted by the COVID-19 pandemic.
• Must be located in Louisville/Jefferson County.
• Must be in good standing with Louisville Metro Revenue Commission.
• Must be in "active" status with Kentucky Secretary of State.

Learn more about the Small Business COVID-19 Relief Grant Program and view a list of businesses with approved grant applications at https://louisvilleky.gov/government/louisville-forward/small-business-covid-19-relief-grants.

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