The Three Rivers Downtown Development Authority Board of Directors recently adopted an addendum to its USDA Revolving Loan Fund criteria in an effort to provide COVID-19 relief assistance to businesses within the TRDDA district.
By adding additional language to the already existing criteria, the TRDDA is able to offer immediate, local assistance in the form of low-interest loans to small businesses who have experienced an income loss as a result of the COVID-19 crisis.
The fund, which had approximately $44,000 in unreserved funds as of Friday’s TRDDA meeting, is not a grant and any money borrowed from the organization will need to be paid back pursuant to the loan’s guidelines. Loan terms are expected to be set at 1 percent interest for up to a 5-year term, and the TRDDA reserves the right to allow interest-only or delayed payments at the onset of the loan. A maximum of $8,000 per loan request has also been established.
“Many of our downtown businesses have applied for other federal and state assistance via the CARES and Stimulus programs but the need and demand is so far reaching that our local businesses have not all been able to receive any assistance,” TRDDA Executive Director Tricia Meyer said. “This is a way that we can offer our local support.”
Only small businesses with fewer than 50 employees that are located in the downtown district (Main Street and Outer District) are eligible, and applicants must be able to prove their business experienced an income loss as a result of COVID-19. Priority will be given to those “with significant financial hardships” and “to those who have not already received federal or state assistance” whether by way of grants or loans related to the global pandemic.
“Right now the DDA is very limited in ways that we can help, but Tricia has been exploring every avenue possible,” Vice Chair Michael Hogoboom said in an interview with Watershed Voice. “Her diligence paid off when she reached out to the USDA about our Revolving Loan Fund. It has not been touched for some time, so it’s there and ready to help. Luckily, they are very willing to allow us to make temporary guidelines and provide it as an option for businesses affected by the crisis.”
Applicants will have until Friday, May 15 to apply and the TRDDA’s Review Team will meet to review and make a recommendation to the full Board at a special hearing via ZOOM, at a date and time yet to be determined. For more information on how to apply, call Tricia Meyer at (269) 535-5145 or email her at [email protected].
Alek Haak-Frost is the executive editor of Watershed Voice.
