Columbus officials are putting together a small business loan program to help local small businesses within the city limits obtain financial support while impacted by the COVID-19 pandemic.
The Columbus Redevelopment Commission and Columbus City Council will consider approving the program next week, which would provide a $1 million loan fund from city funds administered through the Administrative Resources Association, a nonprofit governmental association.
The loan program is being modeled after one that was put in place after the 2008 flood to assist small businesses in staying solvent and recovering in the wake of that disaster.
If approved, the program would offer businesses within the city limits that have $2 million or less in gross receipts and under 50 employees the opportunity to apply for a loan in a range from $5,000 to $25,000, said Mayor Jim Leinhoop and ARA Executive Director Eric Frey.
A loan committee through ARA would evaluate applications, Lienhoop and Frey said.
There would be a six month deferral of interest and principal payments on the three-year loans, which would not require collateral but would require a personal guarantee from applicants, Lienhoop said. Interest rate after the sixth month deferral would be 1 percent.
The program will be considered by the redevelopment commission at 4 p.m. Monday and the city council at 6 p.m. Tuesday, both meetings at city hall which are live-streamed on the city’s website.
If the two boards approve the loan program, a link to apply for the loans could be on the city’s website as soon as Wednesday, Lienhoop said.
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