Details on upcoming Manchester Small Business Recovery Loan Fund

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Mayor Craig on April 1, 2020.

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.

* Start Date: No sooner than June 1, 2020, assuming the public health situation is improving, and closure of business order is lifted. applications can be submitted in advance of this date to ensure funds are ready for disbursement.
* 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.