Albemarle County announces microloans for local businesses
The Albemarle County Board of Supervisors has approved a $200,000 contribution to the Business Recovery Fund, a microloan program that provides financial relief to small businesses impacted by COVID-19.
The main goal of the fund is to restore business activity, employment, and critical community services in rural areas to as close to pre-pandemic levels as practical.
“A stable local economy enables our local government to provide high-quality services to the community. During a crisis such as this, it is critically important to support those businesses that serve our community’s day-to-day needs,” said Board of Supervisors Chair Ned Gallaway.
The Community Investment Collaborative (CIC), a local partner of the EDO, will receive the applications and manage the loans. Priority will be given to applications from rural businesses and businesses that would not qualify for a small business loan elsewhere, and on equity and community needs.
“Albemarle County is pleased to work with the City of Charlottesville to embrace the power of cross-boundary collaboration and jointly offer assistance to our existing small businesses,” said Economic Development Director Roger Johnson.
Businesses may receive loans up to $10,000 or 100% of their prior year expenses, whichever is less. Loans do not require payment for six months, have a 1% interest rate, and have a three-year repayment term.
Any business licensed in Albemarle or Charlottesville for both this and last year with demonstrated capacity to repay the loan and no significant credit issues is eligible to apply. Loans cannot be used to pay existing debt or to purchase equipment or real property.
This funding comes from Albemarle County’s Economic Development Fund.