Pawtucket launches small-business forgivable loan program

PAWTUCKET – The city recently launched a forgivable loan program designed to help hard-hit small businesses with demonstrated revenue losses from the COVID-19 pandemic, Mayor Donald R. Grebien announced on March 9.

The program, to be administered through the Pawtucket Business Development Corp., will offer up to $5,000 in loans with 2% interest and a 12-month deferral on payments. Loans will be forgiven if recipients can prove that one job is either retained or created with the money.

Businesses must have 25 or fewer employees, demonstrate a 50% revenue loss due to the pandemic and meet certain income guidelines.

Funds can be used to pay for operating expenses, including rent, utilities, insurance, marketing costs and supplies. Total funding is limited and will be offered on a first-come, first-served basis.

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The new fund is in addition to an existing COVID-19 Emergency Loan program, which began in May 2020. Since then, the city has offered $320,000 in low-interest loans to 32 recipients, according to Commerce Director Jeanne M. Boyle.

Applications are available online at pawtucketri.com/planning-redevelopment and can be mailed or hand-delivered to the Pawtucket Business Development Corp. at 137 Roosevelt Ave, Pawtucket, R.I., 02860.

Nancy Lavin is a PBN staff writer. You may reach her at Lavin@PBN.com.