BUSINESS FINANCING · KY

Small Business Financing Guide for Jefferson County, Kentucky

This guide helps solo contractors and small business owners in Jefferson County, Kentucky understand their financing options — from local credit unions and CDFIs to SBA-backed loans and ITIN-friendly lenders. We focus on the local institutions that actually serve Louisville and the surrounding county, not just national programs. Whether you are just starting out or looking to grow, there are real resources here built for people like you. Take your time, compare your options, and never feel pressured to sign anything quickly.

§ 01 — What it is

What Is Small Business Financing?

Small business financing is money that you borrow or receive to start, run, or grow a business. It is not a single product — it is a broad category that includes term loans, lines of credit, microloans, equipment financing, invoice factoring, and grants. A term loan gives you a lump sum you repay over time with interest. A line of credit works more like a credit card — you draw from it when you need it and only pay interest on what you use. Microloans are smaller amounts (often under $50,000) that are especially useful for new businesses or solo contractors who do not yet have a long credit history. Grants are money you do not have to pay back, though they usually come with specific eligibility requirements and reporting obligations. In Jefferson County, you have access to all of these — through local lenders, nonprofit lenders, and government-backed programs. This guide walks you through each layer so you can find the right fit.

§ 02 — Who qualifies

Who Qualifies? Understanding Jefferson County's Local Economy

Jefferson County is home to Louisville, one of Kentucky's largest and most economically diverse cities. The county's economy is anchored by healthcare (including the large University of Louisville Health system), logistics and distribution (thanks to UPS Worldport and major interstate crossings), food and beverage manufacturing, construction trades, and a growing technology sector. That means lenders here are familiar with contractors, food entrepreneurs, small manufacturers, warehouse operators, and service businesses. For most business loans in Jefferson County, lenders will look at: - Time in business (many want at least 6–12 months, but nonprofit lenders may accept startups) - Personal and business credit scores (though some ITIN-friendly lenders do not require a Social Security number) - Monthly revenue or projected revenue for startups - A basic business plan or explanation of how you will use the money - Whether your business is legally registered in Kentucky If you are an immigrant entrepreneur, a solo contractor, or someone rebuilding credit, do not assume you cannot qualify. Several local CDFIs and credit unions in Jefferson County specialize in working with exactly these situations. ITIN (Individual Taxpayer Identification Number) is accepted in place of a Social Security number by several institutions listed in this guide.

§ 03 — What you need

Documents You Will Typically Need

Getting your paperwork organized before you apply saves time and builds trust with lenders. Here is what most Jefferson County lenders will ask for: **Identity & Tax Documents** - Government-issued photo ID (driver's license, passport, or consular ID card) - Social Security Number (SSN) or ITIN - Last 2 years of personal tax returns - Last 2 years of business tax returns (if the business has been open that long) **Business Records** - Kentucky business registration (from the Secretary of State's office) - Business licenses or contractor licenses relevant to your trade - Employer Identification Number (EIN) from the IRS - 3–6 months of business bank statements **Financial Statements** - Profit and loss statement (a simple income/expense summary works for many microloan programs) - Balance sheet if available - Current accounts receivable or unpaid invoices, if relevant **Loan Purpose** - A brief written explanation of how you will use the funds - Quotes or invoices for equipment, renovations, or inventory you plan to buy If you are a startup and do not have tax returns or bank statements yet, nonprofit lenders and CDFIs are your best starting point — they are used to working with limited documentation and can help you build a financial profile over time.

§ 04 — Where to start in Jefferson County

Local Lenders, CDFIs, Credit Unions & SBA Resources in Jefferson County

These are real institutions that serve Jefferson County. Origen Capital is a directory, not a lender — always contact each institution directly to confirm current products and eligibility. **Community Development Financial Institutions (CDFIs)** - **Kentucky Highlands Investment Corporation (KHIC)** — A longtime CDFI serving Kentucky entrepreneurs, including those in the Louisville metro area. Offers small business loans with flexible underwriting, especially for businesses that do not qualify at traditional banks. khic.org - **Louisville Community Ventures / Louisville CDFI** — A locally focused CDFI dedicated to small businesses and entrepreneurs in the Louisville area, with a mission to reach underserved communities including minority-owned and immigrant-owned businesses. - **Accion Opportunity Fund** — A national CDFI with strong reach into Kentucky that explicitly accepts ITIN in place of SSN. Offers microloans from $5,000 to $100,000 and provides free business coaching alongside lending. accionopportunityfund.org **SBA District Office** - **SBA Kentucky District Office (Louisville)** — Located in Louisville, the SBA's Kentucky District Office does not lend money directly, but it connects you to SBA-approved lenders in Jefferson County and statewide. The office also hosts free workshops and connects businesses to SCORE mentors. The main SBA loan programs (7(a) loans, 504 loans for real estate/equipment, and SBA Microloans) are all available through local partner lenders. sba.gov/offices/district/ky/louisville **Local Credit Unions** - **Park Community Credit Union** — Based in Louisville, serves Jefferson County residents and businesses. Offers small business loans and business checking, with a more personal underwriting process than large banks. parkcommunity.com - **Louisville Metro Police Officers Credit Union / University of Louisville Federal Credit Union** — Sector-specific credit unions that may serve members in their fields; worth checking if you qualify by employer or association. - **River Valley Financial Group** — A Louisville-based credit union serving the broader metro area with small business products. **ITIN-Friendly Lenders** - **Accion Opportunity Fund** (listed above) explicitly accepts ITIN. - **Self-Help Credit Union** — A national CDFI credit union with a strong record of serving ITIN holders, immigrants, and non-traditional borrowers. selfhelp.org - **Prestamos CDFI** — Though headquartered in Arizona, Prestamos operates nationally and works extensively with Latino entrepreneurs and ITIN holders. prestamoscdfi.com **Local Banks with Small Business Focus** - **Stock Yards Bank & Trust** — A Louisville-headquartered community bank with deep roots in Jefferson County. Known for relationship-based lending and active participation in SBA loan programs. - **Commonwealth Bank & Trust** — A Louisville community bank with a small business lending program oriented toward local entrepreneurs. - **Republic Bank & Trust** — Another Louisville-based institution offering SBA-backed and conventional small business loans. **Grants & Quasi-Equity** - **Louisville Metro Government – Office of Economic Development** — Periodically offers small business grants, facade improvement programs, and business development incentives, especially in designated revitalization zones. louisvilleky.gov/government/economic-development - **Kentucky Small Business Credit Initiative (KSBCI)** — A state-administered program using federal funding to support small business lending through approved lenders. Check with the Kentucky Cabinet for Economic Development for current availability. ced.ky.gov

§ 05 — What to avoid

Kentucky State-Specific Regulatory Notes

Understanding the rules specific to Kentucky helps you avoid surprises during the application process. **Business Registration** All businesses operating in Kentucky must register with the Kentucky Secretary of State. LLCs, corporations, and partnerships register online at sos.ky.gov. Sole proprietors operating under their own legal name may not need to register, but those using a trade name (doing business as, or DBA) should file a DBA with the Jefferson County Clerk. **Contractor Licensing** In Jefferson County, contractors in most trades (electrical, plumbing, HVAC, general construction) must hold both a state license (issued by the Kentucky Department of Housing, Buildings and Construction) and, in many cases, a Louisville Metro permit. Operating without the proper license can disqualify you from certain loan programs and expose you to fines. **Kentucky Usury and Lending Laws** Kentucky sets a general usury cap of 19% APR for most consumer loans, but business loans are not subject to the same caps — which means some lenders can charge very high rates on commercial products. Always ask for the full APR (Annual Percentage Rate) and total cost of the loan, not just the monthly payment. **Kentucky New Markets Development Program** Kentucky offers a state-level New Markets Tax Credit program that can attract investment capital to businesses in low-income areas of Jefferson County. This is more relevant for businesses with larger capital needs (typically $500,000+), but it is worth knowing if you are planning significant expansion. **Louisville Metro Business License** Most businesses operating within Louisville Metro must obtain a local business license and pay the Occupational License Tax. This is a local tax on net profits earned within the county. Your accountant or a SCORE mentor can help you set this up correctly.

§ 06 — Ask a question

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§ 07 — Part of The Legacy Bridge Network

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