Four months after the discovery of the first case of the coronavirus in Shelby County, many small businesses are still struggling to get their revenues back to normal.
Several local and federal programs have been created to help businesses of different sizes since the start of the pandemic. This week, River City Capital, in partnership with several banks and the Kresge Foundation, created another one for small businesses in low-to-modest income neighborhoods in need of help.
River City Capital is a subsidiary of Community LIFT, an organization that provides access to capital in neighborhoods that have long experienced divestment.
The new Road to Recovery initiative is available for small businesses making less than $ 1 million per year and needing help reopening after a full or partial shutdown due to COVID-19. The program has a pooled fund of $ 500,000. Individual business owners could benefit from assistance of up to $ 12,000. Of this money, 60% can be returned while the remaining 40% will be a traditional loan that must be repaid at an interest rate of 4%.
“It is imperative that small businesses receive the emergency capital needed not only to preserve their business today, but also to have the resources to be successful in the future once the effects of the COVID-19 pandemic are affected. will have eased, ”said Michelle Couch, Senior Vice President. chairman of Patriot Bank, one of River City Capital’s partner banks.