Fort Worth small businesses that missed out on coronavirus aid will have another option
Another $15 million could be available for Fort Worth small businesses through city coronavirus relief programs, but not until mid-May.
Earlier this month the city established a nearly $2 million Business Resiliency Microloan Program in partnership with PeopleFund, a nonprofit small business lender. The city has received nearly 250 applications for that batch of money and is looking to expand assistance.
Through the federal government’s $2 trillion stimulus package, the city received $15 million for economic development assistance; $12.5 million will go toward a recovery loan program and the rest a grant program.
Robert Sturns, the city’s economic development director, said several small business owners told the city the federal paycheck protection program and other relief wouldn’t benefit them. So economic development staff have explored using the money as a supplement to federal aide.
Fort Worth-based businesses and nonprofits with up to 500 employees can apply for the zero interest loans for as much $100,000. The loans can be forgiven if the businesses maintain or rehire to pre-outbreak staff levels, Sturns said. Unlike the original PeopleFund loans, this program is designed for long-term recovery.
The $2.5 million grant program is geared toward low-to-moderate income microbusinesses, those with five or fewer employees, or small businesses of 50 or fewer that employ low- to moderate-income employees.
At least half of the grants will be given to minority- or women-owned businesses, he said.
Business can apply for the grant program or the loan program, but not both. They can also apply even if they’ve received federal relief, but Sturns said their financial situation will be analyzed.
Companies must show they have been economically affected by the COVID-19 outbreak.
The city is reaching out to community-based banks and nonprofit lenders to help facilitate the program, Sturns said, with the goal of launching the programs by May 15.
The programs mirror the city’s effort with PeopleFund to assist local businesses beyond the federal emergency relief.
PeopleFund has provided $500,000 for the loan pool, while the city’s loan corporation has pitched in another $500,000. These loans carry zero interest and require no payments for the first six months. After that interest is capped at 5% for six years. They can be combined with other PeopleFund loans.
About $70,000 has been given out through PeopleFund.
Loan amounts can reach up to $50,000, but at least half will be loans of $15,000 or less. At least 60% of the loan proceeds will be committed to boosting minority-owned businesses and people with low to moderate income.
