PROVIDENCE – The Providence Business Loan Fund board of directors on Thursday unanimously approved up to $310,000 in low-interest emergency loans to four city businesses.
The approved loans are the first since Mayor Jorge O. Elorza announced a series of temporary modifications to the loan terms aimed at helping small businesses strapped for cash amid the coronavirus crisis.
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The board’s decision Thursday approved new loans as follows:
- $75,000 to Friskie Fries;
- $75,000 to Alley Cat Providence;
- $60,000 to Fearless Fish Market; and
- Up to $100,000 to Rent Sons with initial approval of a portion of that pending verification of eligibility requirements.
Under modified loan terms, payments can be deferred for six to 12 months with zero interest on the first 12 months and a $500 cap on closing costs. The fund typically supports businesses in creating new jobs but in this case can be used to retain existing employees.
None of the applicants approved on Thursday had received similar funding through the U.S. Small Business Administration’s Paycheck Protection Program; if borrowers are approved for PPP funding, the loan fund board would reconsider its allocation, according to Thomas Hoagland, the fund’s executive director.
As of Wednesday, the loan fund had received applications from 15 small businesses seeking roughly $500,000, though not all applications were completed, according to Katherine Hypolite, spokeswoman for city planning and development. One of those applicants, Big Blue Bug Solutions, was originally slated to be approved for a $100,000 loan on Thursday but withdrew its application after learning it would be receiving a PPP loan, Hoagland said.
The city has set aside $1.5 million in loan funds to support small businesses hurt by COVID-19, Hypolite said. If demand exceeds allocated funds, the city may decide to add more money, depending on availability and approvals from the board and the U.S. Department of Housing and Urban Development.
Nancy Lavin is a PBN staff writer. You may reach her at Lavin@PBN.com.
