City Of Cleveland Releases Applications for New Economic Development Recovery Programs
Earlier this month, Mayor Frank Jackson announced the City of Cleveland’s plan for recovery including the announcement of new forgivable loan and working capital programs.
On Wednesday, May 27, 2020, the administration released applications and additional guidance for the Emergency Working Capital Program related to Specially Impacted Businesses as well as the Restoration Working Capital Program. As a general program overview:
Emergency Working Capital Program – Specially Impacted Businesses:
- Applies only to restaurants, personal care businesses and storefront retail establishments
- Provides up to a $20,000 loan; 50% of the loan value can be forgiven if costs are associated with the purchase of personal protective equipment (PPE)
- No fees or closing costs apply to the loan
- The loan will have a 0% interest rate is 0% until Jan. 1, 2021 at which time the interest rate is 1%
- Loan repayment commences as of Jan. 1, 2021 at $150/month until the loan balance is repaid less forgiveness
- Loan proceeds can be used to reimburse for rent, payroll, utilities and the purchase of PPE incurred on or after March 1, 2020
- Business must submit an application, supplemental questionnaire and a business sustainability plan
- Applications and the supplemental questionnaire can be found here
Restoration Working Capital Loan
- Businesses with more than 30 employees are eligible for up to a $100,000 loan; businesses with 30 employees or less are eligible for up to a $25,000 loan
- Loan repayment commences Jan. 1, 2021
- Payments are 2% interest only for the first year followed by five years of principal and interest repayment. Personal guarantees and/or UCC business liens may be required
- Loan proceeds can be used to reimburse for accounts receivable, rent/mortgage payments, utilities and payroll incurred on or after March 1, 2020
- Applications and additional information regarding this program can be found here
For additional information regarding these or other economic development program, contact Stephanie Mercado at smmercado@kjk.com or 216.736.7272.