The Columbus Small Business Loan program, Columbus INvigorate, will loan more than $750,000 to assist small businesses adversely impacted by COVID-19.
The Columbus INvigorate loan committee met on Friday and reviewed the 57 applications received from local small businesses by the April 30 deadline.
The program will expend $757,000 in funding to 46 local businesses in amounts ranging from $5,000 to $25,000.
Of the businesses receiving low interest loans, 16 are located in the Central TIF District with the remaining businesses located throughout the city.
Small businesses receiving low interest loans from the city include 20 retailers, nine health and fitness businesses, eight businesses conducting personal services (barbers, hair stylists, etc.), six restaurants, two child care providers, and one small manufacturer.
Members of the volunteer loan committee, facilitated by Eric Frey of Administrative Resources association,are: Tom Dowd, Partner, Dunlap & Company and former banker; Charlie Farber, retired banker; Robin Hilber, Assistant Director of Community Development for the City of Columbus; Fred Nerz, retired businessman and SCORE volunteer; Kari Storey, accounting services, Agresta, Storms & O’Leary; and Rita Wilder, Partner, Agresta, Storms & O’Leary.
To be eligible, the business needed to be established and operating by Jan. 1, have fewer than 50 employees, have no more than $2,000,000 in gross receipts, and show a decline in sales as a result of the pandemic. Two years of personal and company tax returns were required to be submitted as well as profit and loss statements for 2019 and the first three months of 2020.
Submitted documentation was analyzed to ensure that parameters of the program were met, that the business was viable before the public health crisis, and that the business is financially capable of paying back the loan. In addition, a personal guaranty is required of all owners
A further stipulation is that funds be used for ordinary and necessary business expenses and not debt consolidation. Businesses must commit to remain open or reopen and retain employees. Loan documentation is being distributed this week with a planned closing date of Friday.
Loans carry a 1% interest rate and have a six-month interest and principal deferral period.
