A total of 43 local businesses received loans totaling $716,000 from a city-funded program aiming to help keep them afloat during the pandemic.
The program, called Columbus INvigorate, allowed small businesses within the Columbus city limits to apply for a loan ranging from $5,000 to $25,000. The loans have a six-month deferral of interest and principal payments on the three-year terms. Interest rate after the six-month deferral would be 1%.
To be eligible to apply for the city’s loan program, companies must have been in business as of Jan. 1, had fewer than 50 employees, no more than $2 million in gross receipts and showed a 25% decline in revenue this past March compared to March 2019, or a 25% decline in revenue over the last three months due to the pandemic public health emergency.
In April, the Columbus City Council approved the use of $1 million in city funds for the program. City councilman Tom Dell, who is co-owner of Dell Brothers, abstained from voting because the company was eligible for the program.
Fifteen companies received the maximum $25,000 loan amount, including Tipton Lakes Family Dentistry, Bowl CBC Inc., Lockett’s, Yeager’s Accounting, Columbus Optical Service, Ark Book & Gift Store, Henry Social Club, Mark A. Barr DDS, CMP Ventures Inc., Midwest Computer Solutions Inc., Viewpoint Books, Lear Machining, Neal Paint (W & E Inc.), Luciana’s and Gramz Bakery (Cole Confectionery).
An additional eight companies received $20,000 loans, including Sonya’s Dance Zone, Dell Brothers, Sky Sport Fitness, Dr. Richard T. Newton DDS, White River Running Co., Liberty Grill LLC, Yo MaMa Frozen Yogurt and White River Clinic of Chiropractic.
In late April, a total of 56 companies applied for $870,000 in loans, but several applicants withdrew their applications because they were able to secure federal assistance. In addition, a few companies never turned in the paperwork required to process their applications and some others were deemed ineligible because they were located outside the Columbus city limits.
Although around $284,000 is left of the $1 million approved for the program, the city does not currently have plans to accept more applications.
“We do have some funds left in that program,” said Robin Hilber, the city’s community development programs coordinator, who is on the program’s loan committee. “We’ve decided to hold off (for now) just to see where businesses might be at in another month or so, but no plans at this point.”
Scores of businesses across the country have struggled to stay afloat during the pandemic as states shut down in April to contain the viral outbreak.
Earlier this week, the Treasury Department released the names of hundreds of thousands of businesses that received loans of at least $150,000 from the $521 billion federal Paycheck Protection Program, including 145 businesses in Columbus and 17 that received at least $1 million.
An additional 672 companies in Columbus received loans under $150,000, including 472 that received loans of $50,000 or less.
None of the 43 companies receiving loans from the city-backed program received federal loans of more than $150,000. Currently, it is not known if any of the 43 companies received smaller federal loans under the Paycheck Protection Program, as the Treasury has not released the names of companies that received loans less than $150,000.
The city money for the loan program includes $250,000 from the Economic Development Income Tax Fund, $350,000 from the city’s general fund capital improvement fund and $400,000 in city redevelopment funding, city officials said. The $350,000 in capital improvement funding will come from deferring that amount from planned projects in 2020 to next year.
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$25,000
Tipton Lakes Family Dentistry, Bowl CBC Inc., Locketts, Yeager’s Accounting, Columbus Optical Service, Ark Book & Gift Store, Henry Social Club, Mark A. Barr DDS, CMP Ventures, Inc., Midwest Computer Solutions Inc., Viewpoint Books, Lear Machining, Neal Paint (W & E Inc.), Luciana’s, Gramz Bakery (Cole Confectionery)
$20,000
Sonya’s Dance Zone, Dell Brothers, Sky Sport Fitness, Dr. Richard T Newton DDS, White River Running Co., Liberty Grill LLC, Yo MaMa Frozen Yogurt, White River Clinic of Chiropractic
$15,000
Happy Nest, Bei Bambini
$12,000
Joslin’s Cabinet Company
$10,000
Zen Fitness, Special Dogs and More, Eagle Avionics, My House, Coach’s Cutz, Creative Hair Design, Play and Learn Childcare, Columbus Acupuncture LLC, The Face Place
$7,500
Gray’s Pro Shop, Shabby Sheep & Ewe
$7,000
Wayne’s Auto Electric, Laurel’s Hair Studio
$5,000
The Cozy, Simply Pottery (Graham Pottery Inc.), Room with a Do, Trionic Human Performance
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