LHDC Launches Microenterprise Loan Program
Lincoln Hills Development Corporation (LHDC) announces that it has received limited funding from the Indiana Housing and Community Development Authority (IHCDA) to implement a microenterprise loan program in Perry County, Indiana.
The Business Expansion and Entrepreneurship Development (BEED) Program is a new initiative in Indiana and was created to accomplish the following goals and objectives:
- Stimulation of business start-up and business expansion by providing loans to qualified entities at favorable terms;
- Creation of new job opportunities for low income individuals through small business start-up;
- Retention and expansion of job opportunities for low income individuals through loans to existing small businesses.
LHDC Executive Director, Larry K. Kleeman, said “We’re fortunate to receive this funding, and excited about this new initiative. We view the BEED program as an important new tool to promote economic development and job creation in Tell City and Perry County. In these economic times, we need to take advantage of every means possible to support and encourage new investment by our local business community. LHDC anticipates lending funds to eligible start up and existing microenterprises to be utilized for working capital, operating costs, or equipment. No loan funds can be utilized for real estate purchases, or to refinance existing debt.”
Potentially eligible individuals/entities include start up and existing microenterprise business owners with five (5) or fewer employees at the loan date. Loans ranging from as little as $2,500.00, and up to $25,000.00, may be requested, and loan applicants must contribute a minimum of 10% equity to the project. Some other restrictions also apply, and loan terms will be negotiated between the applicant and LHDC’s loan committee.
Kleeman continued, “We’re also especially appreciative of the Tell City Economic Development Commission’s support of this initiative, by providing two members’ expertise and service on LHDC’s loan review committee. Their input will be invaluable.”
“The loan funds will be administered on a first come, first served approach, with high consideration given to the need for the business in the community. LHDC will give no preference to any certain business segment or industry.”
For further information on the BEED microenterprise loan program, contact Bill Borders, LHDC Chief Operating Officer, at 812-547-3435 , extension 252.
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