Loan program targets NKY small business growth, job creation

Douglas Clark
Douglas Clark
Douglas Clark is LINK nky's Boone County reporter

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The operators of the Alexandria-based Dollhouse Beauty Salon have known for months that they wanted to expand, Northern Kentucky Area Development District officials said. 

A program the agency manages has helped Dollhouse to achieve that goal. 

The Small Business Lending Program, or Revolving Loan Fund, is a U.S. Department of Commerce Economic Development Administration initiative.

The fund provides a flexible and continuing source of capital for Northern Kentucky small business owners unable to obtain sufficient private financing for projects deemed of economic benefit to the area and its workforce, according to Northern Kentucky Area Development District website. 

“Dollhouse Beauty Salon came to us quite a few months ago,” Northern Kentucky Area Development District Executive Director Tara Johnson-Noem said. “They had moved to a new location and really were feeling the need to grow out.”

The Campbell County salon has a waiting list for its chairs and has room for three. The new facility will have room for six, as well as nail and other services, in addition to nine full time employees, Johnson-Noem said. 

“I have heard about the great work and service they offer at the Dollhouse Salon, but I have not had a chance to get there,” Alexandria resident Lisa Schmidt said. “I hope more space means more potential customers like myself for them.”

As borrowers repay their loans, the payments are returned to the Revolving Loan Fund to make loans to other businesses — and in this manner, the fund becomes an ongoing, or revolving, financial tool, according to the Economic Development Administration website. 

“They are going to expand their business,” Johnson-Noem said regarding Dollhouse Beauty Salon, which was approved for a $50,000 loan. “There’s not really a ton of other facilities, other salons of this size, in that area. We try to focus on job creation, supporting our community and their development.”

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The Dollhouse Beauty Salon will conduct a grand opening of its new location from 5 p.m. to 7 p.m. on Sept. 8, at 8252 Alexandria Pike in Alexandria, according to the salon’s Facebook page. 

Build out for the Dollhouse Beauty Salon expansion includes salon stations; pedicure chairs; plumbing, electrical and HVAC upgrades; flooring; painting and carpentry, according to the loan request summary. 

“We’re going to treat this as a construction loan,” Johnson-Noem said. “They (borrower) will submit receipts and then we will reimburse, because most of their expenses actually have already been incurred.”

Loans made through the Revolving Loan Program help stimulate the local economy; create and retain jobs; and encourage private investment in the region, officials said.

For more information regarding the Revolving Loan Program, contact Johnson-Noem at (859) 283-1885.

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