Help With Health-Care Benefits

Kentucky -- Entrepreneurs in Louisville, Kentucky, can now get a little financial help from their friends by turning to a local bank whose sole purpose is to stimulate the city's economy.

Money for the loans made by the Louisville Community Development Bank (LCDB) comes from a distinctive source--certificates of deposit purchased by individuals and corporations that want to invest in their community. Investors must consign a minimum of $200 in one of three types of CDs, which the LCDB then uses to lend to local companies. LCDB, a federally insured bank, offers a variety of services, from bridge or gap financing and lines of credit to working capital of $5,000 to $1 million. Interest rates may be a little higher than other banks because the bank tends to make riskier loans.

To qualify, borrowers must live, have a business in, provide services to or hire from the Phoenix Hill, Shelby Park, Smoketown or West End communities of Louisville. For more information, call (502) 778-7000.

This article was originally published in the January 1999 print edition of Entrepreneur with the headline: Help With Health-Care Benefits.