A complete of 56 native small companies adversely impacted by the pandemic utilized for $870,000 in loans beneath a city-funded program earlier than final week’s deadline.
This system, referred to as Columbus INvigorate, permits small companies throughout the Columbus metropolis limits the chance to use for a loan starting from $5,000 to $25,000. The loans have a six-month deferral of curiosity and principal funds on the three-year phrases. Rate of interest after the six-month deferral could be 1%.
Six candidates, nevertheless, withdrew their functions or have been deemed ineligible as a result of they have been situated exterior town limits, however have been directed to different sources when doable, stated Eric Frey, govt director of Administrative Assets affiliation, a nonprofit governmental affiliation that’s administering this system.
The quantities requested ranged from $5,000 to $25,000, and greater than 40% of the funds requested got here from companies situated throughout the metropolis’s Central TIF District, Frey stated.
The deadline for the primary spherical of funding was Thursday, and all functions obtained earlier than the deadline shall be thought-about filed on the identical time, metropolis officers stated. Town could settle for extra functions on a first-come, first-serve foundation as soon as the preliminary spherical of loans is dispersed.
Presently, ARa employees members are trying to gather supporting documentation from a few of the candidates, and a loan committee comprised of representatives from ARa, town of Columbus and volunteer accountants and retired bankers is anticipated to course of the loan functions this week, Frey stated.
“We will send out loan documents as soon as we get loan committee approval of the ones that are ready to go,” Frey stated. “…I would hope that we would start distributing (the loans) sometime, fingers crossed, next week.”
On April 21, the Columbus Metropolis Council authorised the creation of this system and the usage of $1 million in metropolis funds for this system. The next day, town began accepting functions by way of its web site and obtained 15 throughout the first 24 hours, Frey stated.
Round 20 companies filed functions throughout the ultimate 48 hours earlier than the deadline, together with a handful that have been submitted lower than 30 minutes earlier than the deadline, Frey stated.
To be eligible to use, firms will need to have been in enterprise as of Jan. 1, have fewer than 50 workers, not more than $2 million in gross receipts and present a decline in income this yr as a result of pandemic. Precedence is being given to small companies with greater credit score scores, demonstrated monetary want, retention of workers, monetary capability to return to or proceed operations, amongst different standards.
Town cash for the loan program will come from $250,000 from the Financial Growth Revenue Tax Fund, $350,000 from town’s normal fund capital enchancment fund and $400,000 in metropolis redevelopment funding, metropolis officers stated. The $350,000 in capital enchancment funding will come from deferring that quantity from deliberate initiatives in 2020 to subsequent yr.
“Small businesses, unfortunately, are the businesses that have been impacted the most. Many of these are self-funded so they weren’t anticipating needing to access outside funding,” stated Robin Hilber, town’s neighborhood growth applications coordinator, who’s on the loan committee. “…(The number of applications) tells us that our small businesses are struggling with this kind of a shutdown.”
For extra data
Go to www.columbus.in.gov/columbus-invigorate/ for extra details about the Columbus INvigorate program.