By Joshua Huff, sports editor
BIRMINGHAM – For-profit businesses with less than 50 employees located within the Birmingham city limits can now apply for emergency loans through the Birmingham Strong Small Business Loan Fund.
Small businesses that have been operating for at least one year are eligible to apply. Those businesses must be based in Birmingham and have a city of Birmingham business license. Non-profit businesses are not eligible to apply for this loan.
Birmingham Mayor Randall Woodfin established the public emergency loan fund in the wake of the coronavirus pandemic with the hope of protecting individuals and small businesses throughout the region from expected revenue losses.
The purpose of the loan is to provide support for small businesses impacted by the coronavirus and are currently waiting for state and federal relief funding. The loans are meant to support businesses that have had limited reductions in payroll or staff size, that need funding to maintain business operations and to provide assistance to businesses in an effort to help them adapt to state and federal guidelines and orders in response to the coronavirus pandemic.
Applications will be judged based upon business impact in the community, adaptability, innovation and responsiveness to the coronavirus, fiscal strength and operational stability, historic contributions to Birmingham as an employer and business and an ability to maintain operations and make payroll while limiting staff reductions.
The loans come in four sizes: $25,000, $20,000, $15,000, or $10,000 per business.
The repayment period is zero interest for 180 days and the repayment structure is:
- $25,000: 3% interest after 180 days
- $20,000: 3.5% interest after 180 days
- $15,000: 4.0% interest after 180 days
- $10,000: 5.0% interest after 180 days
The first round of applications close at 11:59 p.m. on March 27. A second round of applications will be opened if funding is available. Businesses will receive either an approval or rejection via email on April 3 and loan documents will be signed and checks distributed between April 6-15.
Businesses that are interested can request an application via the #BhamStrong website at bhamstrong.com and they will email you an application within 12 hours.
For more information visit https://bhamstrong.com/bhamstrongloan.