Loan applications available today for Columbus small businesses

Columbus small businesses will be able to start applying today for a city loan program to help make it through the current crisis.

Columbus City Council voted to approve moving a total of $1 million dollars of city money into the Columbus INvigorate loan program. $400,000 is coming from the Redevelopment Commission, $350,000 from the city’s General Fund, and $250,000 from the Columbus Economic Development Fund. The money from redevelopment and economic development would come from reserves, while the city General Fund money would require deferring some projects.

Mary Ferdon, director of administration for the city, explains that the loans are meant as a stop-gap measure to help businesses make it until state and federal aid kicks in.

The loans would be available for businesses of 50 employees or less with $2 million or less in annual revenue. Loans would be available for between $5,000 to $25,000 with 1 percent interest and would have a 36 month payback period.

Applications for the funds open today with the first round closing on April 30th. A loan committee will work with Administrative Resources Association, the city’s grant writers, on evaluating the loan applications.

The council voted to approve the funds transfer Tuesday night. Councilman Tom Dell abstained from the voting as he is a small business owner and could apply for the program. Councilman Dave Bush, also a small business owner, said that he has too many employees to qualify for the program, so he decided to vote on the proposal.

Columbus INvigorate Loan Program information is available here