Small businesses hurt by the ongoing COVID-19 pandemic could be able to get some financial aid without waiting on the federal government.
The City and Borough of Juneau Assembly Wednesday approved a emergency $3 million appropriation grant to provide small businesses with funding to bridge the time before federal or state funding is available. The $3 million Assembly appropriation is coming out of CBJ’s budget reserve fund, according to CBJ.
The Juneau Economic Development Council is administering the loans, according to CBJ, and JEDC after receiving direction from the city manager has discretion to make exceptions that match the intent of the loan program.
To qualify for a loan, a business must demonstrate it’s adversely impacted by the COVID-19 pandemic. Loans can be disbursed until the end of the year. A business with 10 or fewer employees is eligible for a maximum loan amount of $25,000, according to CBJ. A business with 11-25 employees is eligible for a maximum loan amount of $50,000.
The maximum loan term is 30 months, and the interest rate for the loan is not to exceed 2%. Loans paid back within a year will pay no interest, according to the resolution establishing the appropriation.
Businesses with sales or property tax delinquencies as of March 1 are ineligible, according to the resolution. A business cannot take out more than one loan.
