Small businesses in Richmond can apply for interest-free catastrophe loans during the pandemic
RICHMOND, Virginia (WWBT) – The Richmond Economic Development Authority has created an interest-free catastrophe loan program for small businesses within the city limits.
The Richmond Small Business Disaster Loan Program will support small businesses affected by the coronavirus pandemic (COVID-19).
The shoe store owner Jeff Wells looks out his window and empathizes with his neighbors whose doors are closed.
“Our business has declined by over 80 percent,” said the owner of Feet Fleet.
The coronavirus shutdown is undoubtedly making it difficult for companies to make ends meet, especially if they have employees in need of paychecks.
“We sat on a lot of inventory. We’re still paying the payroll and not products that go out the door the way they were, “Wells said.
Richmond leaders acknowledge this, and that is why Mayor Levar Stoney discussed the city’s small business aid loan on Friday. Local businesses with 25 employees or fewer can qualify for up to $ 20,000.
“We are doing our best to play the role of the great convener and bring our friends together in the philanthropic, nonprofit world to ensure those in need during this difficult time find the resources necessary to survive,” said he.
It comes when the Small Business Administration also launched the Paycheck Protection Program, which offers up to $ 10 million in forgivable credit to businesses across the country with fewer than 500 employees.
“I think you should be using whatever tool is in the toolbox right now … Also, I ask you to also check with your lenders and banks to see how they can start creating payment plans to make sure.” that they are not in a critical situation. “Serious situation with their lenders,” suggested Stoney.
Over at Fleet Feet, the owners believe Richmond companies could really use the help.
“As we know in this business – cash is king … If we could just wait two or three months and keep our employees to keep them with jobs, maintain some continuity in our business, keep the lights on, that would be “a good thing,” added Wells.
The maximum loan amount for the program is six months of current employee pay or $ 20,000, whichever is lower.
The loan payments are paid out over six months. The loan repayment is deferred for six months, followed by 48 months with no interest payments.
Applications for the loan will be available on April 6th. Funding is limited and applications will be considered in the order in which they are submitted.
All interested small businesses should complete an application and submit the required documents by email.
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