Itemizer-Observer

UPDATED: May 8, 2020

INDEPENDENCE — The Independence City Council at their April 28 meeting allocated $200,000 from the Economic Development Fund for short —term loans to assist re-opening Independence businesses.

“The budget amendment is necessary to provide loans for businesses in Independence who need assistance in order to recover from the effects of the COVID-19 pandemic,” Gloria Butsch, city finance director, said in a memo to the council. “Approval of the budget amendment will reallocate money that was already budgeted to spend. There is no additional resources or expenditures in this amendment.”

The Economic Development Loan Fund had budgeted to provide an interfund loan to the Urban Renewal Projects Fund, a city news release stated.

Approximately $100,000 will be allocated for the Phase I re-opening. The size of the loans will be determined by the amount of interest in the program, but will not exceed $5,000 per business.

Timing:

  •  Applications must be received by 4 p.m. on Wednesday, May 13
  •  First review of applications will be May 14
  •  Additional application deadlines will be announced as funds are   available

Terms:

  •  Loan amounts will be between $2,000 and $5,000 depending on request and availability of funds
  •  30-month payback period
  •  No principal or interest payments for first 6 months
  •  Interest Rate 1.5 percent

Criteria

Businesses must be:

  •  Registered in Independence
  •  Have fewer than 10 employees
  •  Be reopening significant portions of their operations shut due to the COVID-19 emergency before the end of May
  •  Not be part of a national chain

Businesses that have received other loans or grants may apply for this loan program

Businesses must document:

  • They had net profits between Jan. 1 and March 31 of 2020.
  • Which portions of the business the plan to reopen based on what they know at the time of application
  • What they plan to use the loan proceeds for

Contact Information:

Submit applications and any questions to Courtney Williams at cwilliams@ci.independence.or.us

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