New eligibility rules for COVID business loans


By London Bishop - lbishop@aimmediamidwest.com



London Bishop | Greene County News Businesses with 25 or fewer employees are eligible to apply for emergency micro-loans.

London Bishop | Greene County News Businesses with 25 or fewer employees are eligible to apply for emergency micro-loans.


FAIRBORN — As the economic fallout from COVID-19 continues, Fairborn has rolled out adjustments to business loans offered to local entrepreneurs. Businesses with 25 or fewer employees are eligible to apply for the “emergency micro-loans,” which can be used to pay for normal operating expenses.

The initial grant for these loans was rolled out in April. However, the most recent update to these loans has altered the eligibility requirements for local businesses. Previously, companies who received personal protective equipment or other emergency COVID-19 assistance were not eligible for loan assistance through the program. Now, companies that received emergency assistance may still be able to qualify for this second round of funding.

Businesses that were not eligible initially can contact the Development Services Department to explore their new eligibility options. Applications are reviewed on a case-by-case basis.

The initial round of funding was made available by the CARES Act, and is only available to businesses within Fairborn city limits. Retail, wholesale, service, entertainment, and restaurant entrepreneurs are eligible to apply.

These emergency loans have a three-year term at 0 percent interest. The loans are then completely forgiven if the business can provide sufficient documentation that it was able to retain at least one low-to-moderate income employee for the first three months after receiving funds. If the company can’t provide the necessary documentation, repayment is deferred for twelve months. After that, the business has two years to complete the full repayment.

Businesses can receive at maximum $5,000 if they can retain one low-income job. If they can retain two, they are eligible to receive up to $10,000, given the proper documentation and verification.

As with the first round of loans, funding is contingent upon availability. Normally the loan review process takes up to a month to complete, though the city has a goal of disbursing checks within three weeks of submitting required materials.

London Bishop | Greene County News Businesses with 25 or fewer employees are eligible to apply for emergency micro-loans.
https://www.fairborndailyherald.com/wp-content/uploads/sites/50/2020/09/web1_downtown.jpgLondon Bishop | Greene County News Businesses with 25 or fewer employees are eligible to apply for emergency micro-loans.

By London Bishop

lbishop@aimmediamidwest.com

Reach London Bishop at (937) 502-4532

or follow @LBishopFDH on Twitter

Reach London Bishop at (937) 502-4532

or follow @LBishopFDH on Twitter