MANCHESTER, N.H. – On Tuesday, the Manchester Board of Aldermen approved the Manchester Small Business Recovery Loan Fund, with Mayor Joyce Craig breaking a 7-7 tie vote.
Here are some more preliminary details on the fund, provided by the mayor’s office.
* $1,000,000 in initial funding from the City of Manchester (allocated from special revenue account) and Manchester Development Commission (MDC) with additional funding to be sought from other partners.
* Maximum loan amount of $25,000 and the interest rate at 2.0 percent. At this maximum loan amount and $1,000,000 in initial funding, 40 small businesses can participate.
* Eligibility restricted to any Manchester small business that experienced a loss of revenue or closure due to the COVID-19 emergency. MDC will create specific definitions and guidance on eligible small businesses.
* Eligible Uses: Use of loan funds must be restricted to costs associated with resuming operations: working capital, payroll, workforce recruitment, and inventory. No capital improvements permitted.
* The application process will be based on the existing Queen City Loan Fund process
* Loan Terms: 60 months for loans from $15,000-$25,000, 36 months for loans under $15,000. $25,000 for 5 years at 2.0 percent is a monthly payment of $438.19). No interest or payments are due for 3 months.
* Capital Regional Development Corporation (CRDC) will serve as the loan underwriter on behalf of MDC. CRDC will reduce their normal fee to process each loan to $400 from the current level of $750.
* MDC will review and approve all loan applications based on CRDC guidance and completion of the loan application and supporting documents.
* Using Queen City Loan Fund process and documentation and a guide, MDC will develop an application, guidelines, and eligibility terms for the Manchester Small Business Recovery Loan Fund.
* MDC will provide monthly reports to the BMA on the use and performance of this loan fund.
* Greater Manchester Chamber will serve as a partner to coordinate marketing, outreach, and promote awareness of the program to eligible small businesses.