Louisville launches special $2 million fund for local business, dining growth in south end

LOUISVILLE, Ky. (WDRB) -- The city of Louisville created a special fund to boost the growth of businesses in the south end.

The South End Loan and Incentive Fund is a $2 million investment to support business development, commercial property improvements and the attraction of new restaurants along the Dixie Highway corridor, according to a news release from Mayor Craig Greenberg's Office on Thursday.

"The South End is a vital part of our city’s identity and economic future," Greenberg said in the release. "This new fund allows Metro Government to partner directly with the businesses that will keep our South End neighborhoods thriving."

Current businesses and new businesses are eligible to apply for funds.

The new fund was developed in partnership with the Louisville Economic Development Alliance (LEDA) through its Metropolitan Business Development Corporation (METCO) loan program. It's hoped the fund will lead to reduced commercial vacancy and increased foot traffic.

"The South End Loan and Incentive Fund is designed to be catalytic," Louisville Economic Development Alliance CEO Trevor Pawl said in a written statement. "It gives us the ability to provide flexible capital in the heart of one of Louisville’s key commercial corridors. By supporting both long-standing businesses and new investments, we’re reinforcing the South End’s role in our city’s broader economic resurgence."

According to the news release, the South End Fund includes two major components:

1. METCO Loans and Grants – $1 Million

Supporting local businesses through real estate improvements and expansion

Loan pool of $800,000: For 5–10 projects, up to 300,000 each
Grant pool of $200,000: For "legacy" businesses in operation for at least five years in the South Points area, awarding grants up to $10,000 per business
Eligibility Criteria: Projects must demonstrate job creation, capital investment, and alignment with corridor revitalization goals

2. Dixie Highway Restaurant Incentives – $1 Million

Attracting established national or regional restaurant brands

Table Service Restaurants: Offering up to $30 per square foot for new tenants leasing or owning at least 5,000 sq. ft.
Fast Casual Concepts: For restaurants leasing or owning at least 2,000 sq. ft.
Eligible Uses: Buildout costs, ADA improvements, and façade upgrades
Requirements: Restaurants must meet financial thresholds and sign a minimum five-year lease. Claw-back provisions apply if businesses exit early.

Applications will be evaluated on a case-by-case basis, and are now being accepted. Funds will be awarded to qualified applicants on a first-come, first-served basis.

An additional $1 million in reserve funding has been allocated to support future opportunities.

For more information, application details, and eligibility requirements, click here.

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