Mayor Fischer announced a new relief fund last night geared towards very small businesses (under 10 employees). The loan provides up to $25,000 and is not amortized with monthly payments. Instead it is a balloon payment at maturity. What that means is that if you take $5,000 on April 1, 2020 then you would owe $5,000 on April 1 of 2021 (no interest). Important details:
Where to apply: https://www.lhomeky.org/small-business-continuity-loan
Who is eligible:
- Must have 10 or fewer full-time employees
- Business must show emergencies connected with the COVID-19 economic crisis.
- Business must be located in Jefferson County.
- Business must be in good standing with Louisville Metro Revenue Commission as of March 1, 2020.
- Must agree to receive financial coaching and apply for other assistance within 90 days of loan closing
What do you need:
- Balance sheet and income statement year-end 2019
- Balance sheet and income statement month-end prior to application date
- Most recent 90 days business bank statements
- Proof of employee losses/layoffs
- Proof of loss of contracts/reduced cash sales
- Other proof of COVID-19 impact
- Summary from borrower to show how funds will be used to maintain or ensure the viability of their company for the next six (6) months, e.g., retain their employees and make payroll, continue to pay lease agreements as agreed, payments on leased and purchased equipment, maintenance and repair during downtime, maintain other operating costs.
What are the terms:
- Term is 12 months with a balloon payment at maturity
- Must apply for other financial assistance within 90 days of loan closing
If no additional assistance is obtained by the end of the term, the loan is renewable for an additional 4 years at no more than 5% APR.
- Zero percent interest during the initial 12 month term
- Loans are for up to $25,000