New City COVID-19 Small Business Relief Loan Program
The City of Portage has established a loan fund program to provide financial assistance to businesses in the City of Portage that have been adversely affected and/or required to shut down in response to the COVID-19 pandemic. The funding for this program is the Building Façade Loan Fund Program, made possible through the City of Portage and Portage Area Chamber of Commerce grant award in the America’s Best Communities Program, sponsored by Frontier Communications.
The COVID-19 Business Relief Loan Program has the following objectives:
- To allow impacted businesses to continue to make payroll for their employees.
- To lessen the financial impact that the COVID-19 pandemic and associated “Safer at Home” order from the Governor has caused to local businesses.
- To assist small businesses who have 2O employees or less.
- To retain jobs and bring additional employment opportunities to the City.
- To make use of funds the City has set aside for the enhancement of the City’s businesses, which are deemed an asset of the City.
- To spur business activity which may not otherwise have occurred
Key provisions of the new loan program include:
- Maximum Loan amount is $2,000.
- 0 percent interest rate, with monthly payments unless an alternative payment schedule is otherwise expressly permitted by the Community Development Authority.
- The City’s Community Development Authority (CDA) will serve as the loan committee to approve/deny loan applications.
- Payback period (Maximum) is 3 years, or upon sale of the business, whichever occurs first. Payback terms and schedule shall be based on an applicant’s ability to pay.
- Eligible loan activities include payroll, mortgage or lease payments, utility bills, working capital, business loan, payments or expenses that are critical to the well-being, survival or viability of the business. Other activities not in these categories can be approved by the CDA on a case by case basis.
- CDA may require additional information on the applicant’s business operation prior to March 12, 2020, including tax returns, business licenses, a business plan, or other financial statements.
- Loan program limited to small businesses with 20 or fewer employees
- Applicants must be current on all financial obligations to the City, as of March 12, 2020.
- Applicants must have suffered a negative financial impact from the COVID-19 pandemic.
- Applicants must have a physical presence in the City apart from their residence. Home occupation businesses are not eligible.
- Applicants must have been in operation for least two months prior to March 12, 2020 although this criteria can be waived for solely seasonal businesses.
- Applicants will be required to sign a note and the establishment of a UCC lien to secure the loan as a condition of receiving loan funds.
- Applicants who provide false information will be required to pay back the loan immediately at a 4 percent interest rate.
For inquiries and further information, contact Steve Sobiek, Director, Business Development and Planning at 745.0038 email@example.com
Find more details and application on the bottom of the Business Planning & Development Page .