Coronavirus: Up to $50K Loans Available for Burlington County Small-Business Owners
The county’s small-business loan program will provide working capital during the COVID-19 outbreak.
Some small businesses hurt by the coronavirus outbreak and shutdown are now eligible for working capital loans, Freeholder Deputy Director Tom Pullion announced Thursday.
The loans — which are limited to Burlington County businesses — provide up to $10,000 for each job the small-business owner retains, up to a maximum of $50,000, among other benefits.
In addition to covering wages and salaries of current employees, the loans can be used to pay for inventories, accounts payable and operational activities, according to Pullion.
The loans carry an interest rate of 2.4375 percent, which is 75 percent of the prime rate currently set at 3.25 percent.
The small-business loans are provided by the economic development and regional planning arm of the Burlington County Bridge Commission, with the consent of the Burlington County freeholders.
Bridge Commission Chairman Troy Singleton on Thursday described small businesses as “central to our community and paramount to the economy.”
“Our hope and intention is that these loans will bring much-needed relief to business owners by assisting helping them avoid layoffs and retain their valued employees,” Singleton said in a news release. “We will continue supporting Burlington County families and small businesses as we face unprecedented challenges as a result of this pandemic.”
To be eligible, businesses must: be located in Burlington County; maintain jobs for the term of the loan; and have sufficient collateral in business or personal real estate to secure the loan.
Terms of the loan include a maximum payback period of 10 years.
Equity in the business at risk must be at least 10 percent of the amount requested to borrow, and the loan may not be used to refinance current debt, according to the county.
Loan application review is to be expedited and all application fees will be waived, according to Pullion.