City offers local small business loans
Local small businesses are currently feeling the unprecedented pressures from the economic and health impacts of COVID-19. In order to help alleviate some of these pressures, the City of Garden City has financial assistance (as available) for working capital through recaptured Community Development Block Grant (CDBG).
Funds will be in the form of a short-term loan and must be used by existing businesses for working capital needed to retain jobs. The Kansas Department of Commerce has removed many of the traditional CDBG application requirements to expedite the review process. Businesses are, at this time, not required to provide a business plan, financials, or collateral to secure these loans.
Below are the guidelines and requirements for the business. Subject to final approval of the local COVID-19 Business Assistance Response Plan by the City Commission on April 7, the anticipated terms for these loans in Garden City will be:
1. Maximum Loan/Grant is $35,000 per job retained; 51 percent of the persons impacted must be low to moderate income (LMI). 2. All funding under this program must be used for "working capital" as defined by the State of Kansas. Working capital includes salaries and wages, inventory purchase, utilities, rent, insurance payments, etc. 3. Loan interest rates are 0.5 percent. 4. Loan repayment terms will be three (3) years or less. First year payments may be interest only.
City of Garden City CDBG Application
The application and job certification must be filled out and submitted to Lona DuVall (620-271- 0388) or firstname.lastname@example.org. Once submitted, they will be sent to GDPI, who will manage loan applications and administer the loans. Businesses must provide receipts or other proof (e.g., payroll records) to verify that funding was used appropriately.
The first round of application reviews will occur on Tuesday, April 7. There is a limited amount of funding available, so the City encourages interested businesses to submit their application as soon as possible.