KALAMAZOO, MI (WKZO AM/FM) — The United Way of the Battle Creek and Kalamazoo Region (UWBCKR) is announcing that 63 low-interest businesses in Kalamazoo have been approved for low-interest loans totalling $1,120,600.
The $2 million fund was created earlier this month through a partnership of the City of Kalamazoo and UWBCKR. Over 50 businesses had applied by the first week it was established.
“Small businesses are both the economic lifeblood of our community and the first to feel the negative effects of the pandemic,” UWBCKR President and CEO Chris Sargent said. “KSBLF loans are helping them bridge the gap until state and federal aid is available. We’re proud to partner with the City and bring our grant-making expertise to this important work.”
The 63 approved loans run for 36 months, with no interest or payments during the first six month, and 1% annual interest applied over the remaining 30 months.
Data provided from UWBCKR illustrates some details about the approved businesses:
- 30% are in the service industry, followed by food and beverage businesses at 28%, retail businesses at 16%, manufacturing at 3%, and other businesses (e.g., entertainment, performing arts, legal and compliance, medical and laboratory, etc.) at 23%.
- 36 (57%) of approved loans were for women-owned businesses and/or businesses owned by minorities or people of color. A guiding principle of the KSBLF is to ensure equitable investments across the Kalamazoo community.
Among the approved businesses is Tulips Little Pop Up Shop.
“My most pressing concerns were the well-being of my employees and whether or not I could continue to pay them with our doors closed for more than a few weeks and figure out how I could position my business to survive during this time,” owner Kristi Tyler said. “The loan allows me to maintain and pay my staff while continuing to pay overhead costs. Thanks to the generosity of our community, Tulips was provided a safety net during these unprecedented and uncertain times.”
In order to apply for the loan, businesses must meet the following qualifications:
- Provides support to impacted employee(s) especially employees who are in the ALICE population; minority- and women-owned businesses; and businesses that are in the food/beverage, retail, manufacturing and service industry
- Is located in the City of Kalamazoo
- Has 50 Full-Time Equivalent (FTE) employees or less
- Has annual revenue of $2.5 million or less
- Needs working capital to support payroll expenses, rent, mortgage payments, utility expenses, or other similar expenses that occur in the ordinary course of business
- Is able to demonstrate an income loss as a result of the EO, or the COVID-19 outbreak.
Officials add that applications are considered time-sensitive. Any small business looking to apply for the loan should fill out an application as soon as possible.
For more information on how to apply, business owners can visit https://changethestory.org/kalamazoo-small-business/.
