City offering second round of RLF business loans
Mon, 05/04/2020 - 10:58am admin
—Cresco businesses can apply for loan
Cresco - Businesses in Cresco were offered a great deal on loans by the City during the COVID-19 pandemic. Twelve out of 14 Revolving Loan Fund applications were awarded a combined $53,500.
Council members felt there were a lot more businesses out there that are just now really feeling the impact so they voted to open a second round of loans with a deadline of noon on May 18. There is approximately $48,000 left in the fund.
Loans will be given for up to $5,000. To help during this difficult time, loans will be interest free until Jan. 1, 2021, when it will increase to 1% and be amortized over three years.
The RLF was originally created with money from the federal government in which businesses applied for the loan and the government approved and funded the loan. As the loans were repaid, the principal and interest came back to the City of Cresco and accumulated in the RLF. The City (with assistance from HCED/CIDC) uses these funds to provide loans to businesses.
City Clerk Michelle Girolamo explained, “Jason (Passmore of Howard County Business & Tourism) usually works with the businesses, and then a committee reviews applications and makes recommendations to the City Council for approval. We have had good success with all loans being repaid, which keeps the fund going. We had over $100,000 available in the fund.
“Although the City will lose some interest revenue by offering these loans interest-free until Jan. 1, the City Council felt this was a good program to help struggling businesses in Cresco. The City is not making much interest on the money in the bank so feels it is better used by local businesses during these hard times,” she added.
The 1-2-page application can be found at www.cityofcresco.com.