KALAMAZOO, MI (WKZO AM/FM) — The United Way of the Battle Creek and Kalamazoo Region is reporting that around 50 Kalamazoo businesses have applied for the Kalamazoo Small Business Loan Fund so far.
Previously, Kalamazoo City Commissioners approved the fund during a special meeting last week.
This new program has allocated $2 million dollars from the Foundation for Excellence to create low-interest loans to local small businesses struggling during this coronavirus pandemic. Current requests from businesses are reported at over $1.6 million dollars.
According to the special meeting agenda, “The focus of the loan program will be on businesses located within the city of the Kalamazoo that have realized a significant financial hardship as a result of the COVID-19 outbreak. Loans, between $5,000 to $50,000, may be used for working capital to support payroll expenses, rent, mortgage payments, utility expenses or other similar expenses that occur in the ordinary course of business.”
The United Way of the Battle Creek and Kalamazoo Region is in charge of running the program.
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.
The United Way will evaluate each business application on a case-by-case basis through a special committee selected by organization officials.
The qualifying businesses will also have no payments on these loans for the first six months and the total term of each loan will be 36 months. If approved, businesses could receive funds anywhere between a few days to a week.
Officials add that almost 100 businesses are finalizing their applications at this time, which 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/.
