The Columbus City Council has approved the creation of a loan program to help small businesses within the city limits through the COVID-19 crisis.
On Tuesday, city council members approved the program, called the Columbus INvigorate program, and the use of $1 million in city funds for the program, which will be administered by Administrative Resources Association, a nonprofit governmental association.
City councilman Tom Dell, who is co-owner of Dell Brothers, abstained from voting because his business could potentially qualify for the program. David Bush, who is primary shareholder of Kenny Glass Inc., did not abstain because his business employs over 50 people and will not qualify for the program.
The program will allow small businesses within the Columbus city limits the opportunity to apply for a loan ranging from $5,000 to $25,000, city officials said. The loans have a six-month deferral of interest and principal payments on the three-year terms, which do not require collateral but require a personal guarantee from applicants, city officials said. Interest rate after the sixth month deferral would be 1%.
The city plans to start accepting loan applications through its website Wednesday morning, and the first round of applications is expected to close on April 30. All applications received by the deadline will be considered as being submitted at one time, city officials said.
Columbus Mayor Jim Lienhoop previously said he expects the program will start disbursing funds to approved applicants during the first week of May.
For more on this story, see Wednesday’s Republic.
