LOUISVILLE, Ky. — Muslim business owners and entrepreneurs across Louisville will now be able to take advantage of the Metro government's small business loan program after a Sharia-compliant modification was made.
Louisville Metro Government’s small business loan program, METCO, said it aims to expand access to its loan products for Muslim business owners.
These business owners and entrepreneurs would otherwise be prohibited by their religious beliefs from accessing Louisville's low-interest business loans.
Amos Izerimana, Director of the Office for Immigrant Affairs, said the modification was made to offer every Louisvillian access to the city's services and programs.
“This modification will open a pathway to capital for a subset of business owners who were previously left out of traditional banking, creating more stability for the businesses and helping them to grow, which in turn benefits our broader local economy,” Izerimana said.
The METCO Board approved the modification option at its June meeting.
Benjamin Moore, Director of the Department of Economic Development, said in order for Louisville to be a truly welcoming and inclusive community, every Louisvillian must have the same access to information, services and programs offered by the city.
“Muslim business owners that follow Sharia Law have historically been excluded from METCO lending because METCO loans charge interest, a financial practice inconsistent with Sharia Law," Moore said. "With this approved modification, we are happy to say that we have reached a more equitable solution.”
The optional modification will charge a loan service fee in lieu of interest. The fee is based on the amount of interest that METCO would anticipate earning over the life of the loan.
According to officials, fees will never be less than the interest anticipated to be earned. If the loan is paid off early, the loan service fee must still be paid in full.
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