KALAMAZOO, MI (WKZO AM/FM) — The City of Kalamazoo has approved a three-year partnership program with the United Way of the Battle Creek and Kalamazoo Region (UWBCKR) for continued support of small businesses.
The agreement was approved during a virtual meeting Monday.
According to city documents, the city will now expand its Kalamazoo Small Business Loan Fund Program (KSBLF). Under that agreement, the program will use $1,038,500 annually over a three-year period, with a total investment of $3,115,500, from the Foundation for Excellence (FFE) Aspirational Fund.
Last year, the city had approved the launch of the KSBLF program, which was created in response to the COVID-19 pandemic. That program allocated $2 million in relief funds for qualifying businesses.
“The measure of the success of the KSBLF program is that out of 105 loans provided locally, the KSBLF program has only had one (1) default to-date and has had two (2) loans completely paid off,” the documents state. “The KSBLF program has provided a total of $1,274,500 in funding as of January 21, 2021.”
Documents further state that the approval of this expansion will also “enable UWBCKR and City staff to prioritize women-owned and/or Black, Indigenous, People of Color (BIPOC)-owned businesses, with secondary consideration being given to businesses located within the Shared Prosperity Kalamazoo (SPK) neighborhoods (Edison, Northside, and Eastside) with a focus on equity and intersectionality.”
City staff say the loan program is focused on businesses within the city, with loans between $5,000 and $50,000 available to those who qualify. That program includes a $5,000 forgiveness grant.
An Eligible Business for the KSBLF program must meet the following criteria:
- Is located in the City of Kalamazoo.
- Has 50 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.
Another program approved last year, the Kalamazoo Micro-Enterprise Grant Fund (KMEG), is also available. The focus for that program is for micro-businesses that employ 10 full-time employees or less.
In order to qualify for that program, micro-businesses must meet the following criteria:
- Is located in the city of Kalamazoo.
- Has 10 full-time equivalent employees or less.
- Has annual revenue of $1 million or less.
- Has been in operation for at least 1 year
Despite the short length of the meeting, Commissioner Chris Praedel spoke on the approval of the new agreement.
“In the beginning of the pandemic, we partnered with United Way, who has done a spectacular job of administering these funds,” Commissioner Praedel said. “I want to thank United Way for their work, both from this end of the business loans, but also their emergency relief fund as well.”
Readers can view a recording of the meeting here.
Comments