The Broome County Industrial Development Agency is making $1 million in emergency loans available to businesses in financial difficulty due to the novel coronavirus outbreak.
Under the modified loan program announced on Tuesday, agency officials said the documentation and approval process for loans had been streamlined to meet desperate needs given the severe financial crisis facing many businesses. .
“We recognize that what most businesses need to do right now is protect cash flow,” said Stacey Duncan, executive director of the Agency and president and CEO of the Greater Binghamton Chamber of Commerce. . “We hope these funds can help businesses meet their immediate needs while gaining a better understanding of what our long-term recovery will look like.”
Businesses in a region of seven counties are eligible for the program. Loans will be distributed on a first-come, first-served basis.
A similar but less rich loan program was announced last week by the Local Development Corp. of Binghamton, with $350,000 available with a maximum of $15,000 for each applicant.
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Jared Kraham, assistant to Mayor Richard David, said the city had received 18 inquiries and four requests through Tuesday.
“Investigations covered restaurants, medicine, manufacturing, finance, retail and fitness,” Kraham said. “We have received requests from out of town, and we are working with these companies to identify similar programs in their respective locations.”
IDA loan terms are interest free for the first 12 months and fixed at 75% of prime after the first year for up to five years.
Non-profit organizations are not eligible for the program.
Application and closing fees will be waived for approved loans. No capital requirement is necessary.
Documentation for the loan includes:
- Most recent tax return (if not complete for 2019, year-end financial statements will be required).
- List of outstanding debts.
- A credit check.
Funds withdrawn from any of the Agency’s accounts may also be used to assist businesses in Chenango, Cortland, Delaware, Otsego, Tioga, and Tompkins counties, as the funds withdrawn are federal in origin.
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