EAST PROVIDENCE – The city has jump-started its own emergency loan fund programs for the smallest of small businesses impacted by the COVID-19 pandemic, using previously allocated federal funds.
The two loan programs are designed to lessen the impact of the pandemic on these employers, according to a news release.
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The first, the COVID-19 Job Retention Loan Program, includes no payments on the loan for six months and no interest for the life of the loan. Loans will be approved, or rejected, by the Community Development Office in amounts up to $5,000.
The terms include: zero percent interest, three-year terms, collateral sufficient to cover the loan amount, repayment beginning after six months. Only one loan may be taken out by a business at a time, and the funds are conditioned on negotiation of an appropriate legal agreement between the applicant and the city.
The eligibility is that a business must have five or fewer employees, including the owner, and must have a physical presence in an establishment in East Providence. The business must have a documented loss of income due to the COVID-19 pandemic. Jobs to be retained must be held by people with low-to-moderate incomes.
The second program, the COVID-19 Small Business Assistance Program, will be reviewed for approval or rejection by the city’s Economic Development Commission. It applies to businesses that have 10 or fewer employees, which are located in the city and which have had revenue negatively impacted by the pandemic. Loan amounts will range from $1,000 to $5,000 and carry a 2% interest rate, with varying terms of 12 to 36 months for repayment. Repayment will begin after a six-month deferment.
For both of the programs, funds will be dispersed on a first-come, first-served basis, up to a point when the funding is exhausted.
Mary MacDonald is a staff writer for the PBN. Contact her at macdonald@pbn.com.
