Revolving loan fund helps establish local businesses

Lincoln Trail Area Development District's (LTADD) mission has always been to foster sustainable economic growth across its communities. While that often looks like major infrastructure planning or environmental compliance, it also means investing directly in the small-business owners who drive the region's local economies.

Starting a business requires vision, grit and, perhaps most challenging of all, capital. Navigating traditional financing can be daunting for entrepreneurs trying to get their ideas off the ground. That is exactly why LTADD operates its Revolving Loan Fund (RLF). It's designed to fill gaps, offer highly competitive rates and serve as a true partner in launching small-business dreams.

The RLF is a powerful tool available to support economic development opportunities across the entire Lincoln Trail region, driving growth for businesses in Breckinridge, Hardin, Grayson, LaRue, Marion, Meade, Nelson and Washington counties.

Recently, LTADD partnered with Vince McClendon of Louisville and his friends and business partners to help bring two new Firehouse Subs franchises to Radcliff and Elizabethtown. When Vince and his partners, who met during their undergraduate years at Cornell University, decided to expand the Firehouse Subs brand in Kentucky, they began researching their options. As finance professionals, they knew their way around traditional banks, but they wanted to see what kind of localized economic development resources were available.

That's when they found LTADD.

"We looked at traditional banks, but then we also looked at economic development locally, and seeing if there were any financing opportunities or just different solutions and resources," Vince said. "We found this."

From the first point of contact with LTADD Assistant Workforce Director Anthony Hellmueller, who also serves as LTADD's RLF officer, the goal was to make the process as seamless as possible so the partners could focus on what mattered most: building their business.

"Anthony just laid out everything that we needed to provide documentation-wise. He explained how the funding works, the rates ..."

Vince continued: "We thought that there was a really good synergy here between what we're trying to do and what Lincoln Trail is trying to do as well."

Reflecting on the successful partnership, Anthony noted how rewarding it is to see the fund fulfill its purpose.

"At LTADD, it is our pleasure to help business owners expand economic growth in our region," Anthony said. "When we can provide accessible capital to driven entrepreneurs like Vince and his partners, we aren't just helping open store doors; we are actively investing in local job creation, community stability and a brighter economic future for all eight of our regional counties."

For a team of finance professionals, the terms of the RLF were almost unbelievable, Vince said. Designed to incentivize local growth, the fund offers highly competitive interest rates, often below standard market options. When Vince first relayed the finalized loan rates to his partners in New York and Atlanta, they were understandably skeptical.

"We were just baffled, because we saw it on paper, and we spoke with Anthony, but to actually see it in writing is a different thing," Vince said. "To come in at less than the prime rate is a very attractive thing and not something that you see every day. We are very, very blessed and fortunate to be in this position."

He admitted his partners initially thought the deal came with a catch and sounded "too good to be true."

"They were very skeptical," Vince said. "Just being New Yorkers, everything comes with a catch, right? So you just want to make sure you read the fine print. But it is what it says it is. And to me, again, we see it as an investment in us to help grow our business."

For Vince and his team, choosing Firehouse Subs wasn't just about the numbers; it was about the brand's commitment to first responders and community safety. That desire to give back aligned perfectly with LTADD's mission.

The RLF isn't just about getting a product out or collecting interest; it's an investment in local job creation, new dining options and community enrichment.

"We want to be able to show that not only is this just a great opportunity for us, but it's going to create jobs, it's going to create food options in this community, and you're helping an entrepreneur to grow their business," Vince said.

When asked what advice he would give to other small-business owners seeking funding to fuel their economic growth, Vince emphasized looking beyond traditional brick-and-mortar lenders.

"Definitely be creative. I would say it is important to create banking relationships ... but look at local economic opportunities like this as well to help you grow your business," Vince said. "Because you want people who are not only just vested in getting a product out, getting a loan out to you, but also trying to make sure that your business is successful."

LTADD is proud to partner with Vince and his team as they plant deeper roots in Radcliff and Elizabethtown, joining local business groups like the Hardin County Chamber of Commerce and the Radcliff Small Business Alliance.

Are you an entrepreneur or small-business owner in the Lincoln Trail region looking for flexible, community-minded financing to scale your business? Let us invest in your future. To learn more about LTADD's Revolving Loan Fund and see if we can help you, visit https://ltadd.org/services/revolving_loan_fund.