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Glendora COVID-19 Business Recovery Program

Post Date:05/20/2020 10:45 AM

The Chamber of Commerce, in conjunction with the City of Glendora are offering financial assistance to Glendora small businesses that are experiencing financial hardship due to the Coronavirus (COVID-19) pandemic.

The COVID-19 Business Recovery Program is a forgivable loan program created to assist small for-profit businesses facing economic hardship as a result of the COVID-19 stay at home orders.  The program is intended to provide emergency financing to businesses that were unsuccessful in obtaining financing from other state and federal programs. Loans ranging from $5,000 to $15,000 will be allocated to eligible, qualified small businesses based on availability of funds and review of the application and required documentation submitted.

The program is funded through the Community Development Block Grant Coronavirus Fund (CDBG-CV).  Due to the federal funding source, the program requires that the funded activity provide a benefit to low- to moderate-income (LMI) persons.  This requirement can be met through job retention of an LMI individual.

No application fee or collateral are needed to apply.  Applications will be reviewed as they are received, and loans will be processed as long as funds are available.  The loan converts to a grant that does not need to be repaid after four quarters of compliance have been met.

Business Size:

  • 25 or less employees
  • 5 employees or less (including owner) if the business owner is LMI

Program Limits:

  • $5,000 to $15,000

Requirements:

  • For profit business established on or before March 2018.
  • Business must be in good standing with the City of Glendora.
  • Small business with no more than 25 employees as of March 19, 2020.
  • Location (owned or leased) on a commercial address in Glendora. If leased, must have two or more years remaining, or have an option to extend with similar effect.
  • Demonstrated financial hardship directly attributed to COVID-19.
  • Must retain or reinstate at least one LMI job that is at risk or has been terminated. The retained job must be kept for at least four full quarters.
  • Verification or certification that assistance from any other source has not been received, either due to a denial or inability to apply due to lack of funding.
  • Other requirements may apply upon review of completed application.

Use of Funds:

  • Rent of business location
  • Outstanding business expenses
  • Employee Payroll
  • Working Capital
  • Payroll for sick time coverage
  • Adaptive business practices in order to remain open

CDBG Requirements:

  • Funds must provide a benefit a low- to moderate- income person by way of job retention of at least one LMI individual for each loan awarded.

Repayment:

  • Amount is forgiven after 4 full quarters of compliance verifying retention of LMI job.
  • If compliance is not met, repayment begins 12 months after disbursement at a 2.25% rate with a 3-year term.