TUCSON, Ariz. — With the impacts of the COVID-19 pandemic, small businesses in Tucson have been hit hardest by the “Stay at Home” executive orders declaring a statewide and local emergency and ordering the closure of non-essential businesses.
During the April 14 Study Session, the Mayor and Council directed the City Manager and staff to move forward to establish a program under which previously authorized funding ($500,000.00) for loans to eligible small businesses would be supplemented with an additional $500,000.00 in funding, through the City’s relationship with the Business Development Finance Corporation (BDFC).
City Manager's Office Recommendation – The City Manager recommends that the Mayor and Council approve the attached resolution authorizing the use of the existing $500,000 in the BDFC fund balance; and authorizing the appropriation of an additional $500,000 to fund the small business loan program to be administered by BDFC as a part of the We are One/Somos Uno Resiliency Fund.
- Maximum loan amount of $50,000
- 0% interest
- 10-year term with flexible repayment options, including no payments for the first 6 months
- Loans can be used for Working Capital (payroll, rent, utilities, etc.), Marketing, Inventory and Equipment
- No prepayment penalty
- No collateral required for loans under $25,000
Owners will be able to ask for up to $50,000 with zero interest, and pay that loan back over the next 10 years.
This comes after the Rio Nuevo board passed a similar plan about two weeks ago offering $2.5 million.