Schedule 13G


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SCHEDULE 13G Under the Securities and Exchange Act of 1934
LSB Financial Corp
(Name of Issuer)
Common Stock, $0.01 Par Value
(Title of Class of Securities)
320272107
(CUSIP Number)

October 8, 2008
(Date of Event which Requires Filing of this Statement)

Check the appropriate box to designate the rule pursuant to which this Schedule is filed:

o Rule 13d-1(b)

ý Rule 13d-1(c)

o Rule 13d-1(d)

* The remainder of this cover page shall be filled out for a reporting person’s initial filing on this form with respect to the subject class of securities, and for any subsequent amendment containing information which would alter disclosures provided in a prior cover page.

The information required on the remainder of this cover page shall not be deemed to be “filed” for the purpose of Section 18 of the Securities Exchange Act of 1934 (“Act”) or otherwise subject to the liabilities of that section of the Act but shall be subject to all other provisions of the Act (however, see the Notes).

CUSIP No. 320272107

Names of Reporting Persons.

I.R.S. Identification Nos. of above persons (entities only).

Morris Propp

Check the Appropriate Box if a Member of a Group

(a)

(b)

SEC Use Only

Citizenship or Place of Organization U.S.A.

Number of Shares Beneficially by Owned by Each Reporting Person With

Sole Voting Power 95,540

Shared Voting Power 26,847

Sole Dispositive Power 95,540

Shared Dispositive Power 26,847

Aggregate Amount Beneficially Owned by Each Reporting Person 122,387

10.

Check if the Aggregate Amount in Row (9) Excludes Certain Shares (See Instructions) o

11.

Percent of Class Represented by Amount in Row (9) 7.88%

12.

Type of Reporting Person (See Instructions)

Item 1.

The name and address of the principal executive offices of the Issuer are:

LSB Financial Corp.

101 Main St.

Lafayette, IN 47902

Item 2.

This statement on Schedule 13G is being filed by:

(a)

Name: Morris Propp

(b)

Address:

366 Eagle Drive

Jupiter, FL 33477

(c)

Citizenship: United States

(d)

Title of Class of Securities: Common Stock, $0.01 par value

(e)

CUSIP Number: 320272107

Item 3. If this statement is filed pursuant to §§240.13d-1(b) or 240.13d-2(b) or (c), check whether the person filing is a:

(a)

Broker or dealer registered under section 15 of the Act (15 U.S.C. 78o).

(b)

Bank as defined in section 3(a)(6) of the Act (15 U.S.C. 78c).

(c)

Insurance company as defined in section 3(a)(19) of the Act (15 U.S.C. 78c).

(d)

Investment company registered under section 8 of the Investment Company Act of 1940 (15 U.S.C 80a-8).

(e)

An investment adviser in accordance with §240.13d-1(b)(1)(ii)(E);

(f)

An employee benefit plan or endowment fund in accordance with §240.13d-1(b)(1)(ii)(F);

(g)

A parent holding company or control person in accordance with § 240.13d-1(b)(1)(ii)(G);

(h)

A savings associations as defined in Section 3(b) of the Federal Deposit Insurance Act (12 U.S.C. 1813);

(i)

A church plan that is excluded from the definition of an investment company under section 3(c)(14) of the Investment Company Act of 1940 (15 U.S.C. 80a-3);

(j)

Group, in accordance with §240.13d-1(b)(1)(ii)(J).

Item 4. Ownership

Provide the following information regarding the aggregate number and percentage of the class of securities of the issuer identified in Item 1.

(a)

Amount beneficially owned: 122,387

(b)

Percent of class: 7.88%

(c)

Number of shares as to which the person has:

(i)

Sole power to vote or to direct the vote: 95,540

(ii)

Shared power to vote or to direct the vote: 26,847

(iii)

Sole power to dispose or to direct the disposition of: 95,540

(iv)

Shared power to dispose or to direct the disposition of: 26,847

Item 5. Ownership of Five Percent or Less of a Class

If this statement is being filed to report the fact that as of the date hereof the reporting person has ceased to be the beneficial owner of more than five percent of the class of securities, check the following o

Item 6. Ownership of More than Five Percent on Behalf of Another Person

Not applicable.

Item 7. Identification and Classification of the Subsidiary Which Acquired the Security Being Reported on By the Parent Holding Company

Not applicable.

Item 8. Identification and Classification of Members of the Group

Not applicable.

Item 9. Notice of Dissolution of Group

Not applicable.

Item 10. Certification

By signing below I certify that, to the best of my knowledge and belief, the securities referred to above were not acquired and are not held for the purpose of or with the effect of changing or influencing the control of the issuer of the securities and were not acquired and are not held in connection with or as a participant in any transaction having that purpose or effect.

SIGNATURES

After reasonable inquiry and to the best of my knowledge and belief, I certify that the information set forth in this statement is true, complete and correct.

Date: October 14, 2008

By:

/s/ Morris Propp

Morris Propp