Cabinet Partners with Non-Profit Organization to Provide Micro-Business Loans in Underserved Areas
Through its Small and Minority Business Branch, the Cabinet for Economic Development recently issued a Request for Proposals to organizations throughout the state interested in managing the Kentucky Micro-Enterprise Loan fund (KMEL), a program designed to provide small but effective business loans to disadvantaged, women-owned and minority-owned companies.
Community Ventures Corporation (CVC), a non-profit, community-based organization with offices in Lexington, Henderson, and Campbellsville, was selected to manage the program. CVC has an extensive micro-lending background and has been named Kentucky’s “Microlender of the Year” multiple times by the U.S. Small Business Administration.
“We are delighted to be working with Community Ventures Corporation. Since 1996, they have made over 600 micro-business loans totaling almost $5 million,” said Mark Johnson, Manager of the Cabinet’s Small and Minority Business Branch.
As a result of the partnership, the Cabinet’s $300,000 investment will be leveraged into $1.5 million for the sole purpose of making micro-business loans ($500 to $35,000) to small businesses in 11 counties that formerly had no or limited access to such loans. Those counties are: Jefferson, Oldham, Shelby, Spencer, Hardin, Bullitt, Henderson, Daviess, McLean, Webster, and Union.
Additionally, the Cabinet is providing funds to help CVC defray the costs of establishing and operating a Louisville office that will provide training and technical assistance in support of the micro-loan program.
“It is very unusual to have such a large market like Louisville with so few micro-enterprise services. I am concerned that such a large need will quickly outstrip CVC’s resources. However, given the strong partnerships with Kentucky’s Economic Development Cabinet and the U.S. Small Business Administration, I am convinced we can build a quality program to grow small businesses,” states Kevin Smith, CEO of Community Ventures Corporation.
The KMEL program targets small businesses; women-owned, minority-owned and veteran-owned businesses; companies owned by individuals classified with disabilities; and companies located in economically challenged areas.
CVC’s Louisville office became operational in May 2007 and is located at 429 South 2nd Street in downtown Louisville.
For more information on CVC, visit their web site at www.cvcky.org. Information may also be obtained by contacting James Coles, Director of Business Development, at 859-231-0054 or by email at jcoles@cvcky.org.
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