PRESS RELEASE
March 27, 2020
CONTACT INFO. :
Office of the Mayor
Patricia Resende
(401) 529-3207
presende@cityofeastprov.com
Note to Editors: Please see separate loan applications
EAST PROVIDENCE, RI – The City of East Providence has rolled out new emergency loan fund programs for small businesses.
In response to the impact on small businesses, Mayor DaSilva, together with Planning & Economic Development Director William Fazioli, Chief Planner Jim Moran and Community Development Director Dave Bachrach, designed two loan programs.
“The COVID-19 pandemic has not only devastated the public’s health, but has forced hundreds of businesses to shutter their doors leaving thousands of people unemployed,” Mayor Bob DaSilva said. “We hope the rollout of these loans and modification of other loans will give our small businesses the support they need.”
The Community Development: Job Retention Loan Program, includes no payments for six months and no interests for the life of the loan and the Urban Development Action: COVID-19 Small Business Assistance Program offers no interest, no payments for six months.
The two programs, which are supported with existing federal grant funds, address the short-term financial needs of local businesses and those who are self-employed. The two programs are designed to provide the necessary funding to cover the businesses’ various financial needs including: payroll, rent, utilities and other fixed expenses.
“While the City recognizes this is an interim step to provide immediate assistance, we are more than ever committed to building a strong and resilient economy,” Mayor DaSilva said.
In addition, the City has also modified the payment schedule for seven existing loan participants. Payments on current loan programs will be deferred for three months beginning in April.
The City is also working with our congressional delegation to leverage benefits from the Coronavirus Aid, Relief and Economic Security Act, which will provide additional financial relief to manufacturers, small businesses and those who are self-employed.
In order to gain feedback on how local businesses have been impacted by the pandemic, the City, together with the East Providence Chamber of Commerce, has distributed a survey to East Providence businesses. https://www.surveymonkey.com/r/JKMC8VW
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CONFIDENTIAL APPLICATION
East Providence Economic Development Commission
APPLICATION FOR COVID-19 SMALL BUSINESS ASSISTANCE
The information requested in this application is required in order to process your request for relief financing.
1) Digital loan application submittals (preferred submittal option), with all appropriate attachments, can be emailed to Chief Economic Planner James Moran at: jmoran@cityofeastprov.com
Hand written (original) loan applications, with all required submittal attachments should be mailed to:
East Providence Economic Development Commission
COVID -19 Small Business Assistance Program
c/o James Moran, Chief Economic Planner
Dept. of Planning and Economic Development RM 206
145 Taunton Ave.
East Providence, RI 02914
Questions may directed to James Moran at the email above.
Questions by telephone: 401-435-7531 ext. 11153
All information provided as part of this application will be kept confidential.
2) To ensure your application receives prompt attention, please submit a complete loan request package.
3) The acceptance of this application by the Department of Planning and Economic Development in no way constitutes approval, of the request or any commitment, on the part of the Economic Development Commission to approve funding.
4) The Economic Development Commission shall not be responsible for expenses incurred by the applicant in the preparation and submission of any request for financial assistance.
5) Requests for financial assistance will be approved or rejected by the Economic Development Commission. The Commission’s approval will be conditioned on the negotiation of an appropriate legal agreement between the applicant and the City and may be conditioned on the availability of funds. All applications will be considered on a first-come, first-served basis.
6) COVID-19 Business Assistance Program Eligibility Guidelines:
a. Business must be physically located within the city of East Providence
b. Business assistance loans are limited to businesses with ten (10) or fewer employees
c. Loan funds may be used to cover normal business operation expenses.
d. Applicants must provide evidence that the company’s revenues have been negatively impacted by the
COVID-19 pandemic.
e. Loan repayments will be deferred for a period of six months from the date of the loan approval. After the
six-month period has expired, loan recipients will commence with their regular payment schedule, subject
to the loan approval terms established by the Economic Development Commission.
CITY OF EAST PROVIDENCE
COVID-19 SMALL BUSINESS ASSISTANCE PROGRAM
TERMS and CONDITIONS
TOTAL FUND ALLOCATION: $150,000
LOAN AMOUNT: Minimum $1,000
Maximum $5,000
RATE: 2%
TERM: May vary between 12 and 36 months, after the six-month deferment period, at the discretion of the Economic Development Commission.
CONDITIONS:
• One loan per business entity
• Borrower must supply written evidence of how the business has been affected by the COVID-19 pandemic
• Personal guarantees on the loan will be required by the Commission
FINANCIAL INFORMATION REQUIRED:
• Business tax returns for the most recent fiscal year
• Personal financial statements on all guarantors and/or personal tax returns for guarantors may be required.
CONFIDENTIAL FINANCING APPLICATION
COVID-19 SMALL BUSINESS ASSISTANCE PROGRAM
A. APPLICANT INFORMATION:
1. Applicant (Business Name): ____________________________________________________
Business Address: ____________________________________________________________
City/Zip: __________________________________________________________________
Telephone: __________________________________________________________________
Email:_________________________________ website: _____________________________
General Business Description including NAICS code (if known): ______________________
__________________________________________________________________________
Form of Business (Sole proprietor, Partnership, Corporation):_________________________
Date Business Established: _____________________________________________________
Federal Tax ID Number: ______________________________________________________
2. Business Principals: Positions:
_______________________________________________ ____________________________________
________________________________________________ ____________________________________
3. Amount of Loan Request ($1,000 to $5,000): ________________________________________________
4. Current Number of Employees in East Providence: _________________________________
5. Number of Employees prior to the COVID-19 pandemic _______________________________
B. BACKGROUND MATERIAL: A complete application must include the following:
______1. Business tax returns for most recent fiscal year.
______2. Personal tax return of all business principals for 2019 tax year.
______3. Written narrative of how business has been affected from the COVID-19 pandemic.
(provide as much information as possible, ie., job loss, loss of sales revenue, etc.)
Please see written narrative section provided below:
AUTHORIZATION TO DISCLOSE FINANCIAL INFORMATION
In considering your application for a loan, it may be necessary to obtain financial information concerning your credit history and creditworthiness. By signing this loan application you are hereby authorizing the East Providence Economic Development Commission to request or obtain credit information about you and/or your company. It is also agreed that this application remains the property of the Economic Development Commission whether or not the application is approved.
Signature(s) of Applicant(s):
Applicant: ______________________________________________________________
Print Name: ______________________________________________________________
TIN: _______________________________
Date: _______________________________
Applicant: ______________________________________________________________
Print Name: ______________________________________________________________
TIN: _______________________________
Date: _______________________________
WRITTEN NARRATIVE OF HOW BUSINESS HAS BEEN IMPACTED BY THE COVID-19 PANDEMIC (Please use the narrative section below to describe the impacts of the COVID-19 pandemic on your business)
____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________
____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________
CONFIDENTIAL APPLICATION
EAST PROVIDENCE COMMUNITY DEVELOPMENT
Application for COVID-19 Job Retention Loan Program
Requests for financial assistance will be approved or rejected by the Community Development Office. The Community Development Office’s approval of a loan up to $5,000 will be available until Jun 30, 2020 and will be conditioned on the negotiation of an appropriate legal agreement between the applicant and the City and may be conditioned on the availability of funds. All applications will be considered on a first-come first-served basis.
A. Loan Terms & Conditions
a) Zero percent interest
b) Three-year term
c) Collateral sufficient to cover the loan amount (UCCs on equipment and real estate acceptable)
d) Repayment starts after 6 months
e) If payments are not made after 6 months from your loan closing, a 3 percent interest will be charged until payments become current
f) No pre-payment penalty
g) Loans up to $5,000 maximum
h) One loan per business
i) Loan funds must be used to cover normal business operation expenses (ie. Rent, utilities,
payroll and other fixed costs).
Eligibility Requirements
a) The business must have five or less employees including the owner.
b) The business must have a physical establishment in East Providence.
c) The business must have experienced a documented loss of income due to COVID-19.
d) The business cannot use these funds for expenses covered by other federal funds
e) The loan will require an equal amount of collateral provided by the applicant.
f) An itemized list of the use of loan funds will be required.
g) Job to be retained must be held by a person with low to moderate income.
The information requested in this application is required in order to process your request for relief financing. Please fill it out and submit digitally to dbachrach@cityofeastprov.com. For questions, please call Community Development Director David Bachrach at 401-435-7536. All information will be kept confidential.
Threshold Requirements
To meet the threshold for this loan there must be sufficient documentation that the jobs would have been lost without the CDBG assistance and that one or both of the following applies to at least 51 percent of the jobs:
• The job is held by a low/moderate income (LMI) person (refer to income limits); or
• The job can reasonably be expected to turn over within the following two years and steps will be taken to ensure that the job will be filled by, or made available to, a LMI person. To be considered “Available to” jobs, they cannot require special skills that can only be acquired with substantial training or work experience or education beyond high school unless the business agrees to train them. Such jobs, the business must take actions to ensure that LMI persons receive first consideration for filling them.
A. APPLICANT INFORMATION:
Applicant: __________________________________________________________________
Address: ________________________________
City/Zip: ________________
Telephone: _______________
Business Description: ________________________________________________________
Requested Loan Amount: $______________
Form of Business: Sole proprietor: ____ Partnership: ____ Corporation: ___
Date Established: ____________
Federal Tax ID Number: __________
Company Positions/Titles/ Hrs. per week:
Position Title Hrs. worked /week
_______________________ ______________________________ ________________
_______________________ ______________________________ ________________
_______________________ ______________________________ ________________
_______________________ ______________________________ ________________
B. SUPPORTING DOCUMENTATION REQUIRED WITH APPLICATION
Position/ name & title of job(s) that will be lost without loan funds:
Position Name Title
____________________ __________________________ ________________________
____________________ ___________________________ ________________________
____________________ __________________________ ________________________
____________________ ___________________________ ________________________
____________________ ___________________________ ________________________
1) Operating Budget detailing expenses and revenues.
2) Documentation of total revenues during last quarter of 2019.
3) Documentation of total revenues during first quarter or 2020 to present.
4) Completed and signed Self Declaration of Income Form (attached) for owner and each job(s) that would be lost.
C. Income Limits
Income Limits
Persons in Household 1 2 3 4 5 6 7 8
80% Median Area Income $45,850 $52,400 $58,950 $65,500 $70,750 $76,000 $81,250 $86,500
