Local businesses can apply for support during COVID-19
HORNELL — The COVID-19 pandemic has stressed small businesses like no time since the Great Depression, with the future of many hanging in the balance.
The City of Hornell Industrial Development Agency (CHIDA) is offering a lifeline.
During Thursday’s meeting, CHIDA and its sister organization, the Hornell Area Industrial Development Corporation, approved the formation of a $250,000 Small Business Assistance Program.
The program will offer loans up to $20,000, with no payment or interest for 90 days. At that time, if the assistance is not paid back in full, it converts into a 33-month loan with interest at 1 percent.
Executive Director Jim Griffin said CHIDA saw a need to fill a funding gap for Hornell small businesses.
“The beauty of our program as opposed to some of the other ones, our applications are going to be simpler,” Griffin said. “They’re not going to have audited financial statements and everything a bank would normally require. I’ve talked to the banks about this and explained to them what we’re doing. We’re not competing with the banks, we’re trying to fill that gap where the banks haven’t been able to help somebody out that needs it quickly and badly.”
CHIDA members will make up the loan committee, which expects to move on applications quickly to get funds in the hands of small business owners. Griffin said Paycheck Protection Program (PPP) loans from the federal government have generated limited interest locally.
The majority of PPP loans are earmarked to cover payroll, but the city’s Small Business Assistance Program would be open-ended.
“We know the companies. We’re not going to get flimflammed. Nobody is going to borrow the money to paint their office,” Griffin said. “They’re going to borrow the money to hopefully get their business moving along in this time of crisis we have right now. That’s the whole object of it, and I think it’s a great use of some economic development funds we’ve had locked up that we couldn’t use before.”
The $250,000 for the program traces back to HUD funding, marked for economic development. CHIDA Executive Consultant Shawn Hogan said the funding could arrive just in time for some businesses.
“The loan program would help some of the ultra small businesses locally to get through the next three months, to pay their rent, pay their utilities,” said Hogan. “Most of them are still trying to operate doing curbside service, and then you have small mom and pop retailers that have been closed right now. That’s what I envision this being for. There’s no red tape, it helps them get over the hump. It’s not a gift, it’s a loan. If they can’t repay it after 90 days it converts.”
Loan applications will be placed at https://ift.tt/3cMRzSr
Applicants can print them off, scan them and return them via email. Call 607-324-0310 for more information.
Griffin said CHIDA would keep it simple and run the Small Business Assistance Program out of its office.
“We’re going to be there and be a safety net for small businesses,” Griffin said.
Mayor John Buckley, a member of the committee, also endorsed the program.
“I think it’s absolutely appropriate and absolutely needed,” Buckley said. “It has my full support. I think it’s going to be a great thing for our local businesses and community members as well.”
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April 26, 2020 at 01:18PM
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IDA launches Small Business Assistance Program - Hornell Evening Tribune
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