History

At a glance

An FDIC-insured, state-chartered commercial bank. Exists to stimulate economic growth within 12 inner-city neighborhoods. Wholly owned by Louisville Development Bancorp  The first community development bank in a city of Louisville's size A self-sustaining institution that does not rely on public funding or grants The only bank in America that geographically restricts its activities to distressed inner-city neighborhoods. Certified as a CDFI -- one of a limited number of banks nationwide that holds this certification Loans are funded solely through Certificates of Deposit

In 1992, Louisville Mayor Jerry Abramson and a group of business, civic and religious leaders began an unprecedented undertaking.  Their goal was to devise a plan that would provide continual, long-term improvement of economic conditions in Louisville's inner city.  Supporting businesses owned and operated by residents in this area became their top priority. The premise was simple:  By restoring businesses, you restore jobs.  By restoring jobs, you restore neighborhoods.

The area of the inner city that needed the most help was targeted and designated the Investment Area.  The Investment Area is comprised of 12 inner city Louisville neighborhoods that are located both east and west of downtown.  West Louisville is a 16-square-mile area that encompasses nine neighborhoods.  Its population is approximately 70,000.  Phoenix Hill, Smoketown and Shelby Park, located east of downtown, have a combined population of 10,000.  Nine of the Investment Area's 12 neighborhoods have been designated as Distressed Communities by the federal government.

 

Economic opportunity in the Investment Area has been limited.  Efforts by both the public and private sector have been in decline, particularly in terms of small-business development.  Historical, social and economic factors have resulted in limited employment opportunities and an alarming increase in the number of residents living below poverty. In fact, a staggering number of the residents of the Investment Area live below poverty and the unemployment rate is twice the national average.  Clearly, the degree of economic distress and physical deterioration make a compelling argument for targeted development intervention.

 

The Mayor's group concluded that the best strategy for making a significant impact in the Investment Area would be to develop a private, non-government, self-sustaining economic engine.  As a result, Louisville Development Bancorp, Inc. was created to spark new development and infuse the area with new capital and new opportunities.

 

The Bank opened it's doors in January, 1997, with $8 million in equity financing and $20 million in pledged deposits.  Today, the bank has over $32 million in deposits and successfully executes one of the most unique approaches to economic development in America.

 

Working together to carry out the Bancorp's comprehensive community development strategy in the Investment Area are Bancorp affiliates Louisville Community Development Bank and Louisville Real Estate Development Company, and their community development non-profit partner, the Louisville Enterprise Group.

 

Louisville Community Development Bank is a certified Community Development Financial Institution (CDFI) bank in America that concentrates the majority of its efforts to revitalizing the economy of economically distressed neighborhoods.  These neighborhoods have been the victims of decades of declining employment opportunities, disinvestment, disappearing services, neglect and disillusionment.

Rather than take a welfare-like approach to reversing the downward spiral of poverty and despair, Louisville Community Development Bank is giving residents the opportunity for meaningful, living-wage employment, and homeownership in a safe, clean neighborhood.  We accomplish this by making fair credit loans to businesses that will either relocate to or expand their services within these neighborhoods.  This creates new job opportunities for area residents.  We also make loans to homeowners who wish to repair or remodel their homes, and to individuals who will rehabilitate abandoned or dilapidated properties for eventual commercial use.

This unique and effective approach to economic development works!  There is an old saying that we believe in very strongly:  "When you give a person a fish, you feed them for a day.  When you teach a person how to fish, you feed them for life."

You can help us give others the tools they need to help themselves by making a deposit with us.  Your socially responsible, FDIC-insured certificate of deposit will earn a safe and steady return while it is being converted into developmental loans that create jobs, restore homes and build businesses in these poverty-stricken communities. You may choose to invest in either competitive, market-rate CDs or opt for slightly lower CD interest rates that will allow us to maximize the economic development generated by your investment.