Here is how the federal government is stepping in to support small businesses and health care providers.
Under the modified loan program announced Tuesday, agency representatives said documentation and the loan approval process has been streamlined to accommodate the desperate need in light the severe financial crunch many businesses are experiencing.
“We recognize that what most businesses need to do at this time is to protect cash flow,” said Stacey Duncan, executive director of The Agency and president & CEO of the Greater Binghamton Chamber of Commerce. “We’re hopeful that these funds can assist businesses with their immediate needs while we gain a better understanding of what our long-term recovery will look like.”
Businesses in a seven county area qualify for the program. Loans will be distributed on a first-come, first-served basis.
A similar though less rich loan program was announced last week by Binghamton’s Local Development Corp. with $350,000 available with a maximum of $15,000 for each applicant.
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Jared Kraham, an aide to Mayor Richard David, said the city received 18 inquiries and four applications through Tuesday.
“Inquiries have included restaurant, medical, manufacturing, finance, retail and fitness,” Kraham said. “We’ve received requests from outside the city and we’re working with those businesses to identify similar programs in their respective locations.”
Terms for the IDA loans are no interest for the first 12 months, and a rate pegged at 75% of prime after the first year for a length of up to five years.
Not-for-profits are not eligible for the program.
Application and closing costs will be waived for loans approved. No equity requirement is necessary.
Documentation for the loan includes:
- Most recent tax return (if not complete for 2019, year-end financials will be required);
- List of current debt;
- A credit check.
Funds that draw from one of The Agency’s accounts can also be used to assist businesses in Chenango, Cortland, Delaware, Otsego, Tioga and Tompkins counties because the funds tapped are federal in origin.
Businesses interested in applying should contact Tom Gray at 607-584-9000 or email@example.com. Additional contacts include Natalie Abbadessa at 607-584-9000 or firstname.lastname@example.org.
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