SMALL BUSINESS CONTINUITY LOAN PROGRAM

SMALL BUSINESS CONTINUITY LOAN PROGRAM

administered by LHOME

in partnership with Render Capital, Louisville Forward, and GLI

AVAILABLE AS OF APRIL 3, 2020

Eligible borrower:

• Small Businesses with 10 or fewer employees. Business must show emergency connected with COVID-19 economic crisis.
• Business must be located in Jefferson County, KY.
• Business must be in good standing with Louisville Metro Revenue Commission as of March 1, 2020, verified by LHOME staff.

Loan terms and Application Requirements/Process:

Twelve (12) month term with a balloon payment at maturity. The primary purpose of the loan is to provide quick emergency financial assistance to very small businesses. Borrower must agree to receive financial coaching and apply for other assistance within ninety (90) days of loan closing. However, if other assistance is not procured by the end of the term, the loan is renewable for additional four (4) years at a 5.0% APR. No prepayment penalty if other assistance is secured and used to pay off loan early.

• Zero (0) percent interest during the term (subject to a higher interest rate upon renewal, which shall not exceed five (5) percent in any circumstances).
• Promissory note contains requirement for borrower to receive technical assistance, including applying for other assistance within ninety (90) days of closing date.
• Loan cap: Up to $25,000; loan amount will be determined by documented needs.
• Need to show emergency and connection to COVID-19 pandemic impact.

Application packet includes (using Lenderfit for speed, ease, and security): [subject to review and change per LHOME’s underwriting policies and procedures]

• Balance sheet and income statement year-end 2019
• Balance sheet and income statement month-end prior to application date
• Most recent 90 days business bank statements
• Proof of employee losses/layoffs
• Proof of loss of contracts/reduced cash sales
• Other proof of COVID-19 impact
• Summary from borrower to show how funds will be used to maintain or ensure the viability of their company for the next six (6) months, e.g., retain their employees and make payroll, continue to pay lease agreements as agreed, payments on leased and purchased equipment, maintenance and repair during downtime, maintain other operating costs.

Program Outcome: Provide emergency financing assistance to keep businesses viable through the crisis and keep people employed in small businesses.