DETROIT (WXYZ) — Wayne County and TCF Financial Corporation announced a $10 million partnership on Wednesday to fund low-interest loans for small businesses affected by the COVID-19 pandemic.
The program will start with $6 million in initial funding and is targeted for small businesses in low income areas that have been hardest hit. They will be for up to $50,000 and have interest rates between 0-2% for Wayne County businesses.
“Small businesses are the backbone of Wayne County’s economy, and they are in the most need during the on-going COVID-19 pandemic. This program will get assistance to small businesses, fast and in time to help with their immediate financial needs,” Wayne County Executive Warren Evans said in a release. “The coronavirus has forced many of these businesses to shorten hours and staff or close their doors indefinitely. This new program is part of our economic development strategy to help them weather this unprecedented time and crisis. We’re in this fight together and are committed to doing everything possible to mitigate and overcome COVID-19 as we work to ensure public health and safety.”
Both the county and TCF will contribute $3 million each to the pool to start.
“Strengthening small businesses and the communities we serve has always been our purpose, and we need to care for those struggling in this time of need,” TCF Chairman Gary Torgow said. “We’re honored to partner with Wayne County to help us ensure that small businesses throughout the county, who support our communities with key goods and services, can have the peace of mind that their workers and bills can be paid.”
To apply for the loan, businesses must employ less than 100 employees, have an annual revenue under $1 million and be in a low income census tract in Wayne County.
Then, the banking center manager will verity the business, refer it to a local business banking relationship manager, who will then contact the business to submit the loan application.
Those applicants will need one year of business and tax returns, a brief explanation of hardship – a 25% loss in revenue or more – and an explanation of how funds will be used.
The loans will be between $5,000 and $50,000 and have a 12-month term with interest-only payments for the first six months and regular payments after. At the end of 12 months, the loan will be paid in a single balloon payment.
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