Acknowledging the significant effect associated with COVID-19 pandemic on the neighborhood small company community, the Lancaster City Council has directed the issuance as much as $2,000,000 in loan funds to assist small enterprises in Lancaster through the Stand Strong Business healing Loan Program.

What exactly is it?

Stand Strong offers low and no-interest loans of $5,000 to $20,000 to small enterprises in Lancaster impacted by the COVID-19 pandemic. Funds are meant to 1) help businesses adversely influenced by COVID-19 in keeping viability during and beyond the outbreak, and 2) help those undergoing mandatory closures in recommencing operations following a outbreak’s conclusion.

That is qualified?

To be able to be eligible for the scheduled system, companies must:

• Be separate, locally-owned small enterprises whoever main company procedure is situated inside the Lancaster City limitations
• Are typically in procedure in Lancaster for at the least year at the time of March 17, 2020 (the date the Lancaster City Council ratified the statement of the State of Emergency)

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• Have actually yearly revenue that is gross of3.5 million or less
• ESSENTIAL – PLEASE BROWSE BEFORE YOU APPLY: the next businesses aren’t qualified to take part in this program: smoke shops/cigarette stores, hookah lounges, pawn stores, payday loan providers, alcohol shops, adult entertainment enterprises, therapeutic therapeutic massage establishments, gambling establishments, and home-based organizations .

Exactly what do the funds be properly used for?

Loan funds must certanly be utilized for working money costs such as for example lease, payroll, resources, crucial solutions, and necessary materials to aid with company continuity and data data recovery.

Exactly what are the loan terms?

Organizations may choose 1 of 2 loan choices:

• Year option 1: 0% interest for a term of 6 months to 1
• Option 2: adjustable rate of interest corresponding to the town of Lancaster Portfolio Yield for approximately five years; in no occasion will the price exceed 3%

Loan payments are due quarterly, without any prepayment penalty.

How will funds be granted?

Loan amounts may be determined centered on need expressed through the Statement of anticipated Fund utilize and healing Arrange presented using the application.

As funds are limited, loans is going to be awarded on a competitive foundation, with prioritization in line with the following requirements:

1. Effect of Mandatory Closures – the continuing company is straight suffering from the closures and/or limitations mandated by l . a . County.
2. Require – the continuing company shows a need for the loan, and contains actively taken other actions to make sure company continuity and/or data recovery.
3. Community – the company is a tiny, locally-owned, entrepreneurial company, which gives an original experience or solution to residents.
4. Viability – The business’s monetary statements mirror a business that is stable, but also for the impact of COVID-19, could be in a position to continue running.
5. Contribution – the business enterprise favorably plays a part in the synergy regarding the area that is commercial which it really is positioned.
6. Ownership – separate, non-chain, non-franchised organizations are going to be offered very first concern.

How can I use?

To be able to qualify, organizations must:

• Show that historical earnings had been enough to service the requested debt and possess been relying on the outbreak that is COVID-19.
• Major company owner(s) should have reasonable and accountable individual credit rating and a satisfactory description for almost any derogatory markings. Bankruptcies and financial obligation write-offs should be at the very least one year old.
• All business people whom hold 20% or even more ownership must guarantee the mortgage.
• Submit the next papers via our safe online portal:
  • Complete application for the loan
  • Company taxation statements (one year)
  • Revenue and loss declaration showing month-to-month running costs and profits (a few months)
  • Year personal tax returns (1)
  • Bank statements (three months)
  • Statement of Expected Fund Use (maximum 1 web web web page)
  • Healing Plan (optimum 1 web web page)

Program Policies & Treatments

Just click here to see the complete system policies and procedures.

Applications

Applications and supporting materials can be submitted via a safe portal in the link that is following.

Note: Please refer to eligibility requirements above to ensure your company is qualified just before using.

The length of time will the scheduled system final?

This program will continue to be in place until December 31, 2020 or until funds are exhausted, whichever happens first. Companies are motivated to utilize very very early to boost the reality that funds is supposed to be available upon application.