Loan Goal: Provide immediate small business loans to businesses immediately impacted by COVID-19.
Funding Source: City of Green Bay CDBG-RLF
Program Funding Amount: $100,000
Availability: On or before April 13, 2020. In lieu of traditional loan agreements, the City established an application process requiring a notarized signature and promissory note.
Overview: Provide up to $10,000 in zero-interest loans for the first 12 months and 4% interest for the remaining term of the loan to small businesses to be used to support certain small business activities throughout the City of Green Bay that have realized a significant financial hardship as a result of the COVID-19 pandemic.
Eligible Businesses: Eligible Business means a business in an industry outlined in Emergency Order #12 – Safer at Home Order, or any subsequent Emergency Order, or demonstrates it is otherwise affected by the COVID-19 outbreak.
- Businesses with less than 20 FTE employees are eligible for up to a $5,000 loan.
- Businesses with 20 to 100 FTE employees are eligible for up to a $10,000 loan.
Eligible businesses must demonstrate the following:
- The company can demonstrate an income loss as a result of the Emergency Order #12, or the COVID-19 outbreak;
- Have a bricks and mortar business located within the City of Green Bay;
- The company needs working capital to support payroll expenses, utility expenses, or other similar expenses that occur in the ordinary course of business.
Eligible Uses: Loans may be used for working capital to support payroll expenses, utility expenses, rent and mortgage payments, or other similar expenses that occur in the ordinary course of business. Applicants are encouraged to also work with landlords and mortgage institutions to arrange rent reductions and/or payment deferrals.
Ineligible Uses: Loans are not available for: property management/landlord for either commercial and/or residential customers, any speculative venture, investment venture, research and development, or home-based occupations.
Interest Rate: 0.00% for the first 12 months 4.0% for the remainder of the loan.
Term: 36 month term for $5000 loan and 48 month term for $10,000 loan both with 12 months of deferred payments and no interest, principal payments shall begin one year from the date of distribution.
Example Loan Payments:
$5,000 Loan: 36 months $217.13/month after 12 months of deferred payments
$10,000 Loan: 48 months $225.80/month after 12 months of deferred payments
Approval: Submission of an application does not guarantee funding, and all applications will be reviewed by the City Staff and the City Loan Committee. Any applicant can decrease or decline funding upon notification of approval.