Onondaga County Executive Ryan McMahon announced that the county will offer zero-interest loans to small businesses shutdown due to the coronavirus pandemic.[1] The purpose of the loan is to keep these small businesses afloat until they can receive funds from the U.S. Small Business Administration.[2] Onondaga County has $500,000 available to lend.[3]
The U.S. Small Business Administration is offering an Economic Injury Disaster loan to small businesses for up to $2 million at 3.75 percent interest, but it will take up to 90 days for the business to receive the funds.[4] The county money will be available to businesses within 21 days according to McMahon.[5] Loans are due back once the federal money is received.[6]
Additionally, on March 19, 2020, Mayor Ben Walsh announced the city would also set aside a pool of money to assist Syracuse's small businesses.[7] The Syracuse Economic Development Corporation will direct $500,000 toward zero-interest loans for small businesses hurt by the shutdown.[8] The maximum loan amount is $25,000, with a 180 day term.[9] There are no fees to apply for the loan, but there is a small legal fee if a company is awarded a loan.[10] To receive a loan, the company applying must be able to show a loss of income in the last 60 days.[11]
For more information, please contact CCB Law.
[1] https://www.syracuse.com/coronavirus/2020/03/onondaga-county-offers-bridge-loans-to-small-businesses.html
[2] Small businesses, private non-profit organizations of any size, small agricultural cooperatives and small aquaculture enterprises that have been financially impacted as a direct result of the novel coronavirus since Jan. 31, 2020, may qualify for Economic Injury Disaster Loans of up to $2 million to help meet financial obligations and operating expenses which could have been met had the disaster not occurred.
[3] Id.
[4] Id.
[5] Id.
[6] Id.
[7] https://www.syracuse.com/coronavirus/2020/03/syracuse-offers-500000-in-zero-interest-loans-for-small-businesses-hurt-by-coronavirus.html
[8] Id.
[9] Id.
[10] Id.
[11] Id.